If you follow the blockchain industry and the digital currency market, it is unlikely that you have not heard of the term Governance Token, or as it is known in English as Governance Token.
š¤So what is the meaning of this term? What does it refer to?
šDefinition:
Governance tokens are digital currencies that are key to on-chain decision making. Unlike digital assets like Bitcoin that are only used as a means of payment, governance tokens incentivize community participation by giving their holders voting power to determine the future direction of a digital currency project.
Specifically, these tokens give their holders the right to vote on specific decisions made by the network, such as changes to software codes, protocol upgrades, bug fixes, feature implementation, and more. All of this gives governance token holders real power, allowing them to directly influence the development, operation and future direction of the Divi protocol or blockchain network.
The goal of governance tokens is to create a more decentralized system that reduces risk and increases trust for all participants. They also provide an incentive for people to participate in the network and contribute to its growth, which can lead to increased adoption of the protocol itself. This, in turn, will strengthen the network and increase its value over time.
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