That's true, but in lowering it, other whales can get proposals through also. Other whales can also raise the return proposal.
If Blocktrades is the only whale voting he can control everything. It doesn't take a huge amount of participation from other whales to change that though.
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Of course. It'll be the same gripes as witness voting... but I don't see better options. Just different options like voting for representative accounts to vote on funding allocation. The only given is the impossibility to make all parties happy.
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