Sirwin
Sirwin

What Are Governance Tokens and How Do They Work ? - Extended Edition


Governance tokens are a type of cryptocurrency that gives users the ability to vote on updates and changes to cryptocurrency and blockchain projects, but how exactly do these governance tokens work? How are governance tokens distributed, and are there any rewards for holding governance tokens. Although many people know that governance tokens allow users to vote on changes to blockchain projects, how are those changes actually processed? How are governance tokens similar to traditional stocks, and how are they different? In this post, I'll do my best to explain what governance tokens are and how they work. 

01:39 What is Governance
03:51 How Are Governance Tokens Distributed
05:20 What Do Governance Tokens Do?
06:42 Are Governance Tokens Stocks?
08:27 Rewards for Holding Governance Tokens
10:29 How Are Proposals Implemented
12:22 Utility vs Governance Tokens
14:20 Summary

References
https://www.gemini.com/cryptopedia/defi-solutions-decentralized-governance-meaning#section-governance-tokens


https://medium.com/compound-finance/compound-governance-5531f524cf68


https://www.coinbase.com/learn/market-updates/around-the-block-issue-13


https://medium.com/multi-io/explained-defi-governance-tokens-23a76e4df543

 

How do you rate this article?

72


The Part Time Economist
The Part Time Economist

Hi everyone. I'm just a simple man trying to make my way in the universe. I am passionate about cryptocurrency and hope that I can make at least some small contribution towards promoting wider crypto adoption and understanding.


The Part Time Economist
The Part Time Economist

Hi everyone. This is just a place for me to post some of my thoughts and analysis. I hope that someone finds them useful.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.