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Plutocracy in the Protocol: A Quantitative Triangulation of Power Concentration in Decentralized Finance Governance Arya Ganendra; Neva Dian Permana; Muhammad Faiz; Henry Clifford
Enigma in Economics Vol. 3 No. 2 (2025): Enigma in Economics
Publisher : Enigma Institute

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61996/economy.v3i2.104

Decentralized Finance (DeFi) proposes a paradigm shift towards a democratized financial ecosystem governed by its users. This vision of decentralization is predicated on the distribution of governance tokens. However, the verity of this claim lacks rigorous empirical validation, raising concerns about a potential "decentralization illusion." This study quantitatively investigates the concentration of governance power within leading DeFi protocols to empirically test this narrative. We employed a multi-faceted quantitative triangulation framework using on-chain data from three archetypal DeFi protocols, selected to represent the core sectors of the ecosystem: a lending market (ProtoLend), a decentralized exchange (ProtoSwap), and a yield aggregator (ProtoYield). Our methodology integrates: (1) Empirical Network Analysis based on on-chain voting power delegation to map the topology of influence; (2) Economic Inequality Metrics, including the Gini Coefficient and Lorenz Curve Analysis, to quantify the distribution of governance tokens; and (3) Systemic Risk Assessment via the Nakamoto Coefficient to determine the minimum number of colluding actors required for a 51% governance attack. The empirical network analysis revealed a distinct core-periphery topology across all protocols, indicative of highly centralized influence structures. This was substantiated by extreme economic inequality, with Gini coefficients of 0.91 for ProtoLend, 0.95 for ProtoSwap, and 0.89 for ProtoYield. Lorenz curves visually confirmed that a minuscule fraction of holders controls the vast majority of voting power. The Nakamoto coefficients were critically low, calculated at 8 for ProtoLend, 5 for ProtoSwap, and 11 for ProtoYield, exposing profound vulnerabilities to collusion and capture. In conclusion, our findings provide robust, triangulated evidence of a pervasive "decentralization illusion" within DeFi. Governance power is not distributed but is instead highly concentrated, replicating the plutocratic power dynamics of traditional finance. This concentration poses significant systemic risks and fundamentally challenges the core value proposition of the DeFi ecosystem.

Algorithmic Enclaves and Political Sophistication: A Structural Equation Modeling (SEM) of Gen Z’s Voting Behavior in Indonesia’s 2024 Election Arya Ganendra; Danila Adi Sanjaya; Ifah Shandy
Open Access Indonesia Journal of Social Sciences Vol. 8 No. 3 (2025): Open Access Indonesia Journal of Social Sciences
Publisher : HM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37275/oaijss.v8i3.304

The 2024 Indonesian General Election marked a paradigm shift in democratic engagement, with Generation Z emerging as the primary electoral demographic. This study investigates the impact of algorithmic enclaves—AI-curated digital spaces—on the voting behavior of young voters. It specifically explores how these enclaves influence political sophistication and whether they facilitate informed decision-making or exacerbate affective polarization in a transitioning democracy. Utilizing a quantitative approach, this research employs Structural Equation Modeling (SEM) to analyze a nationwide dataset of 1,200 Gen Z respondents aged 17–27. The model tests the structural relationships between Algorithmic Awareness, Echo Chamber Exposure, and Political Sophistication as determinants of Voting Behavior. The SEM analysis demonstrates that Algorithmic Enclaves have a significant direct effect on voting preferences (Beta = 0.48, p < 0.001). Crucially, Political Sophistication serves as a partial mediator; however, its efficacy is contingent upon Algorithmic Awareness. For voters with low awareness, enclaves significantly narrowed political horizons, whereas high awareness acted as a moderating buffer. In conclusion, the study concludes that algorithmic curation has redefined the Indonesian political landscape. To safeguard democratic integrity, it is imperative to transition from basic digital access to advanced algorithmic literacy.

Algorithmic Enclaves and Political Sophistication: A Structural Equation Modeling (SEM) of Gen Z’s Voting Behavior in Indonesia’s 2024 Election Arya Ganendra; Danila Adi Sanjaya; Ifah Shandy
Open Access Indonesia Journal of Social Sciences Vol. 8 No. 3 (2025): Open Access Indonesia Journal of Social Sciences
Publisher : HM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37275/oaijss.v8i3.304

The 2024 Indonesian General Election marked a paradigm shift in democratic engagement, with Generation Z emerging as the primary electoral demographic. This study investigates the impact of algorithmic enclaves—AI-curated digital spaces—on the voting behavior of young voters. It specifically explores how these enclaves influence political sophistication and whether they facilitate informed decision-making or exacerbate affective polarization in a transitioning democracy. Utilizing a quantitative approach, this research employs Structural Equation Modeling (SEM) to analyze a nationwide dataset of 1,200 Gen Z respondents aged 17–27. The model tests the structural relationships between Algorithmic Awareness, Echo Chamber Exposure, and Political Sophistication as determinants of Voting Behavior. The SEM analysis demonstrates that Algorithmic Enclaves have a significant direct effect on voting preferences (Beta = 0.48, p < 0.001). Crucially, Political Sophistication serves as a partial mediator; however, its efficacy is contingent upon Algorithmic Awareness. For voters with low awareness, enclaves significantly narrowed political horizons, whereas high awareness acted as a moderating buffer. In conclusion, the study concludes that algorithmic curation has redefined the Indonesian political landscape. To safeguard democratic integrity, it is imperative to transition from basic digital access to advanced algorithmic literacy.

Citizen Trust, Perceived Surveillance, and Polycentric Governance Participation in Indonesian Smart City Programs Arya Ganendra; Jasmila Tanjung
Open Access Indonesia Journal of Social Sciences Vol. 9 No. 1 (2026): Open Access Indonesia Journal of Social Sciences
Publisher : HM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37275/oaijss.v9i1.317

Smart city programs in Indonesia expand digital governance infrastructure while raising concerns about citizen surveillance and data privacy. Understanding how perceived surveillance affects citizen trust and participation in polycentric governance structures is critical for sustainable smart city development. This study examined 352 citizens across nine Indonesian cities representing three administrative tiers (Tier-1: Jakarta, Bandung, Surabaya; Tier-2: Semarang, Makassar, Medan; Tier-3: Palembang, Balikpapan, Manado) to investigate the relationships among perceived surveillance intensity, citizen trust in governance institutions, and participation in polycentric governance mechanisms. Hierarchical multiple regression analysis revealed a statistically significant model explaining 42.1% of variance in citizen trust (R² = 0.421, adjusted R² = 0.399, f² = 0.727). Facial recognition perceived intensity demonstrated the strongest negative predictor (β = -0.378, 95% CI [-0.498, -0.258]), while multi-stakeholder governance participation showed the strongest positive predictor (β = 0.334, 95% CI [0.218, 0.450]). Additional significant predictors included closed-circuit television surveillance intensity (β = -0.312), citizen feedback mechanisms (β = 0.298), data transparency (β = 0.287), decentralized decision-making participation (β = 0.256), governance literacy (β = 0.213), e-government service use (β = 0.189), and educational attainment (β = 0.145). These findings indicate that while surveillance technologies undermine institutional trust, inclusive governance processes and transparency mechanisms strengthen citizen confidence. Indonesian smart city programs should prioritize polycentric governance structures, data transparency, and digital literacy initiatives to mitigate surveillance-related trust erosion. Results support policy recommendations emphasizing stakeholder participation, technological accountability, and institutional transparency as essential components of citizen-centric smart city governance.

Citizen Trust, Perceived Surveillance, and Polycentric Governance Participation in Indonesian Smart City Programs Arya Ganendra; Jasmila Tanjung
Open Access Indonesia Journal of Social Sciences Vol. 9 No. 1 (2026): Open Access Indonesia Journal of Social Sciences
Publisher : HM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37275/oaijss.v9i1.317

Smart city programs in Indonesia expand digital governance infrastructure while raising concerns about citizen surveillance and data privacy. Understanding how perceived surveillance affects citizen trust and participation in polycentric governance structures is critical for sustainable smart city development. This study examined 352 citizens across nine Indonesian cities representing three administrative tiers (Tier-1: Jakarta, Bandung, Surabaya; Tier-2: Semarang, Makassar, Medan; Tier-3: Palembang, Balikpapan, Manado) to investigate the relationships among perceived surveillance intensity, citizen trust in governance institutions, and participation in polycentric governance mechanisms. Hierarchical multiple regression analysis revealed a statistically significant model explaining 42.1% of variance in citizen trust (R² = 0.421, adjusted R² = 0.399, f² = 0.727). Facial recognition perceived intensity demonstrated the strongest negative predictor (β = -0.378, 95% CI [-0.498, -0.258]), while multi-stakeholder governance participation showed the strongest positive predictor (β = 0.334, 95% CI [0.218, 0.450]). Additional significant predictors included closed-circuit television surveillance intensity (β = -0.312), citizen feedback mechanisms (β = 0.298), data transparency (β = 0.287), decentralized decision-making participation (β = 0.256), governance literacy (β = 0.213), e-government service use (β = 0.189), and educational attainment (β = 0.145). These findings indicate that while surveillance technologies undermine institutional trust, inclusive governance processes and transparency mechanisms strengthen citizen confidence. Indonesian smart city programs should prioritize polycentric governance structures, data transparency, and digital literacy initiatives to mitigate surveillance-related trust erosion. Results support policy recommendations emphasizing stakeholder participation, technological accountability, and institutional transparency as essential components of citizen-centric smart city governance.

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