Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Other Popular Cryptos / Coins => Topic started by: Crypto Fella on July 18, 2024, 11:58:54 PM
-
I need some enlightenment on governance tokens. It is usually said that governance tokens is used in voting and decision-making processes, whereas utility tokens provide access to services, act as payment mediums, or offer rewards.
All these when looked together is still the same purpose of cryptocurrency when and it doesn't sound special so when I heard about the hyped Sanctum's Cloud, UNI, AAVE, Compound etc... I just asked, what's the point, all I'm looking for is to buy coins and let them rise please, no time for long speech.
-
I just asked, what's the point, all I'm looking for is to buy coins and let them rise please, no time for long speech.
If you only care about profit, then you just need to speculate whether project/service behind the governance token (such as UNI token for Uniswap) will become more popular or successful in the future.
-
The main difference in primary objectives is that Governance tokens allow you to participate in making decisions, which are usually DAOs, as having a certain percentage and with a certain vote, you can make changes to the blockchain, which is essential in influencing the future of a project.
In short, it is essential in influencing the dApp's liquidity pools.
-
Governance tokens work by providing holders with a certain weight in the voting system, depending on the number of coins they hold.
-
Governance tokens work by providing holders with a certain weight in the voting system, depending on the number of coins they hold.
Yes, It is one of the most important uses of governance tokens