There's no such thing as a valueless governance token, only one whose value is yet to be utilized.
Governance tokens can be activated
+ as a function/service required within the protocol
+ to control assets of a protocol
+ to alter the existing parameters of a given network
Governance tokens can be activated
+ as a function/service required within the protocol
+ to control assets of a protocol
+ to alter the existing parameters of a given network
As a service:
Protocols that primarily use governance tokens for key decision making naturally accrue greater governance power.
Governance-heavy protocols like @NexusMutual allow stakers to make key decisions through the use of tokens. To hold more tokens is to hold more power.
Protocols that primarily use governance tokens for key decision making naturally accrue greater governance power.
Governance-heavy protocols like @NexusMutual allow stakers to make key decisions through the use of tokens. To hold more tokens is to hold more power.
Governance tokens also can be used to set parameters for:
+ inflation
+ token distribution
+ liquidity mining rewards
Parameters aren’t always governed on-chain and sometimes require social consensus, however, many networks can be altered by token holders.
+ inflation
+ token distribution
+ liquidity mining rewards
Parameters aren’t always governed on-chain and sometimes require social consensus, however, many networks can be altered by token holders.
To learn more about governance tokens and the latent power that they hold, read the full article by @masonnystrom messari.io/article/the-la…
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