Topic: Governance tokens - how'd they help? (Read 270 times)
They help in decentralization of platform somewhat, as more power is given to people who hold more tokens but I guess it's still better than few people being in control.
It is too early to judge what governance tokens can do. The idea of DAO's hasn't yet been exexuted as per its real definition. The biggest hurdle in this almost always is to ensure a fair launch and fair distribution. As soon as a project gains legitimacy, big whales jump in to scoop pre-sales and load their bags to dump on the user base later.
This is why governance tokens have not been able to gain proper traction.
Still there are projects that are trying to do this by building communities as well as to ensure fair distributions. For the present, most governance tokens are just the latest fad to gain traction and liquidity.
This is why governance tokens have not been able to gain proper traction.
Still there are projects that are trying to do this by building communities as well as to ensure fair distributions. For the present, most governance tokens are just the latest fad to gain traction and liquidity.
I think buying tokens to participate in governance could be a bad idea if they are going to be unaffordable for majority of network participants. Or it's a bad idea if only few people can afford to participate in governance.
Governance participation should be based on merit/skills/reputation, rather than the amount of money participants can afford. The token models I have seen so far are really not decentralization-friendly. A Merit-based model can be way more efficient, effective and inclusive if done correctly.
Governance participation should be based on merit/skills/reputation, rather than the amount of money participants can afford. The token models I have seen so far are really not decentralization-friendly. A Merit-based model can be way more efficient, effective and inclusive if done correctly.
Governance tokens may be centralized on different aspect.
Since governance token can be success or driven by holders of the token, so if you own a huge amount of tokens then you have a big allocation for voting, your vote is very huge, this is one of the problems I can see with governance tokens for being a centralized.
Since governance token can be success or driven by holders of the token, so if you own a huge amount of tokens then you have a big allocation for voting, your vote is very huge, this is one of the problems I can see with governance tokens for being a centralized.
Centralized tokens/coins has no positivity compared to the decentralized tokens, they simply used as lucrative word to attract more people by saying the words like trust,stable,etc.Nowadays people rarely invest any new projects which are from centralized entity so no need to get excited about this idea, this is just another shit idea for scamming.
I'm pretty new to crypto, but one thing I often hear about is the utility of "governance" tokens. Does anyone have any examples of the governance system being clearly successful/negative for a project?
Any more personal stories of votes going against you, and it mattering?
Any more personal stories of votes going against you, and it mattering?
A token having a governance mechanism, means it offers voting power to community members, that is to say, the community members can vote on certain things in the platform, also, it means the team can't take some actions without the community voting on it. Also, to be able to vote, you will need to hold a certain amount of tokens, therefore this can indirectly make the token valuable since people will buy to vote hence increasing the volume. Although mare looking at it, it have other advantages such that if the team are genuine, they won't mess around with the project but however, it also have its own disadvantages such that, holding a very large amount will afford the holder some sort of centralized powers to vote, and that leads to manipulation towards the holder's favour. Also, these governance tokens increases in their numbers during this DeFi era where most team used it as a means to attract more users without having any good use case.
Yeah the concept never really struck as a fantastic idea, quite in the same way as it had been promoted. I do think it is innovative and correct direction stuff but, as you've put it ^ seems mostly promotional.
There's a lot negative aspect on Governance token such as :
- Centralized, controlled by single entity
- Can be frozen/freeze your token
- If the entity aren't developed against bug/leaks, the token could be hacked more easier
- The single entity can plan an exit scam
- Can increase and burn the coin as they wanted
The positive aspect on Governance token :
- Mostly none, probably it's more easier to promote the token since it's from governance (well known person and have power on his countries)
- Centralized, controlled by single entity
- Can be frozen/freeze your token
- If the entity aren't developed against bug/leaks, the token could be hacked more easier
- The single entity can plan an exit scam
- Can increase and burn the coin as they wanted
The positive aspect on Governance token :
- Mostly none, probably it's more easier to promote the token since it's from governance (well known person and have power on his countries)
I'm pretty new to crypto, but one thing I often hear about is the utility of "governance" tokens. Does anyone have any examples of the governance system being clearly successful/negative for a project?
Any more personal stories of votes going against you, and it mattering?
Do you know CHSB? this project was using the governance tokens to give the voting rights to the its token holders. that means if the holders will be determining where the project will be going one. The same thing is also happening with the uniswap service too as people who are still holding the uniswap coin will able to participate in the voting right but this doesn't give a lot of impact to the price. It can bring the usability for the governance tokens. Any more personal stories of votes going against you, and it mattering?
Been checking it out thanks. Interesting finding out that's how DAOs work! I wonder now what makes a good DAO...? and how much the governance process determines this
One known governance token is Maker. You can read more information about its description through the link below.
https://coinmarketcap.com/alexandria/glossary/governance-token
https://coinmarketcap.com/alexandria/glossary/governance-token
One that provides voting rights. Sometimes tokens will have platform utility as well as voting rights. Normally these can be grouped into the utility token category.
I'm pretty new to crypto, but one thing I often hear about is the utility of "governance" tokens. Does anyone have any examples of the governance system being clearly successful/negative for a project?
Any more personal stories of votes going against you, and it mattering?
Any more personal stories of votes going against you, and it mattering?
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