Did you ever ask yourself what makes a Decentralized Finance (DeFi) Protocol decentralized? A vital role in decentralization play Governance Coins and Tokens. They are an easy way to make a project decentralized and to incentivize users to participate in the project That's the main reason why almost all DeFi coins are also governance tokens.
Let's check out the TOP 5 most popular Governance Coins and Tokens by market capitalization.
What Are Governance Coins?
Governance coins can make every project decentralized in a relatively simple way. They are used to determine the direction of the according to protocol. Every holder of the governance coin can create proposals to introduce new features or changes to the protocol.
Once a proposal has been made, discussed by the community and further fleshed out, the holders of the Governance Coin can vote to make the final decision. Normally, the weight of your vote is based on the number of governance tokens you are holding.
The TOP 5 Governance Coins and Tokens right now by market capitalization according to data from CoinGecko are
- Uniswap $UNI
- Internet Computer $ICP
- Aave $AAVE
- Curve DAO $CRV
- Synthetix Network $SNX
No. 1 Uniswap $UNI
The Governance Coin with the highest market capitalization right now is $UNI, the native token of Uniswap. The $UNI tokens had been airdropped to early adopters of the DEX in September 200. It was the first massive airdrop of its kind.
Project Website: https://uniswap.org
No. 2 Internet Computer $ICP
The Governance Token with the second-highest market capitalization is $ICP, the native token of Internet Computer.
Internet Computer provides the first “World Computer” blockchain that can be used to build almost any online system or service. This also includes web social media without the need for traditional centralized IT. As such it can enable full end-to-end decentralization.
Project Website: https://internetcomputer.org
No. 3 Aave $AAVE
Aave is a popular decentralized lending protocol on the Ethereum blockchain. It allows users to lend and borrow cryptocurrencies with more than 20 different assets that can be used as collateral.
The native token of the protocol has the ticker $AAVE and is mainly used for governance purposes.
Project Website: https://app.aave.com
No. 4 Curve DAO $CRV
Curve Finance can be compared to Uniswap with the big difference that it focuses on allowing users to swap between assets that have very similar underlying values at the lowest slippage.
Curve Finance conducted a massive retroactive token airdrop in August 2020 to reward early users. $CRV, the governance token for Curve Finance is implemented in a complex time-based staking system on the platform.
Project Website: https://curve.fi/#/ethereum/swap
No. 5 Synthetix Network $SNX
Synthetix is a classical DEX as well as a platform for synthetic assets. The Synthetix Network is designed in a way that exposes users to the underlying assets via synths, without actually having to hold the underlying asset.
The Governance token $SNX can also be staked on the platform to earn a share of the transaction fees from the platform
Project Website: https://synthetix.io
My Final Words
These were the TOP 5 Governance coins and tokens by the current market capitalization according to data from CoinGecko.
If you want to buy, sell, or trade any of the TOP 5 Governance coins and tokens then Binance is the best place to go. If you don't have a Binance account yet, please consider using my invitation link with the code E3PGAJCE for signing up. This will save you trading fees each time you perform a trade on Binance.
Finally, I also like to remind you that my intention in this post is to raise your awareness of popular Governance coins. My intention is not to replace your own research. Remember that I may look smart in my profile pic but I am not your financial sensei.
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