Thinking about this today as a potential governance issue down the road:
If a crypto bearmarket does happen like it was in 2018, and altcoins (including governance tokens of major DeFi protocols) go down significantly (like 75%-99%) again, this might give competitor protocols or whoever has the sufficient capital the opportunity to buy up 50%+ voting governance easily and launch attack to control each other’s protocols right?
Take COMP for example, its market cap is $790M currently, taking over 50% voting governance would be difficult, but if it goes -99% like most altcoins did in the 2018 bearmarket, market valuation would fall to $7.9M, a small sum amount of money to pay to control a whole protocol through governance. Obviously this is worse case scenario for COMP, but this does pose a major risk for governance, we don’t want entities with not-the-best intents to control the protocol just because valuation fell.
Given this is such a significant risk, is there anything we could do to protect the governance of AAVE protocol just in case? Welcome your inputs and thoughts! Cheers.