What are governance tokens, and how do they work?
Governance tokens allow users the opportunity to take on a more active role in managing decentralized projects. Governance tokens are a type of cryptocurrency that allow tokenholders to vote on the direction of a blockchain project. The primary purpose of governance tokens is to decentralize decision-making and to give holders a say in how the project is run.Governance tokenholders are usually more invested in the project’s success as they stand to gain or lose more, depending on the outcome. Community members can use tokens to influence the direction and features of a blockchain protocol....
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Powerpool has launched an index and meta-governance token for the recently consolidated Yearn.finance ecosystem. PowerPool, a project exploring the utility of Ethereum-based governance tokens, has launched YETI — an index and “meta-governance” token for the Yearn.finance ecosystem.YETI was conceived by Messari’s Ryan Watkins, who published the proposal for a Yearn Finance ecosystem index token to PowerPool’s governance forums on Dec. 4.The Messari researcher noted that “despite development and community resources being merged” among the YFI ecosystem members, “governance among these....
A core Yearn contributor gives the behind-the-scenes account of what may be the most consequential vote in decentralized governance history On February 2nd, at 6:00pm UTC Yearn Improvement Proposal 57 passed mandating that Yearn Finance, the decentralized and permissionless neo-hedge fund where I work, mint 6,666 new YFI tokens.YFI holders themselves passed this vote, with 83% voting in favor, and the highest engagement since Yearns now-mythical fair launch. The effects of this new twist in the story of DAOs of what may be the most important governance action in the history of DeFis most....
Decentralizing finance, governance and technology should be the ultimate goal for the DeFi sector. The role of governance in the booming decentralized finance industry is a nascent one, and there are ongoing conversations from key figures in the industry around its purpose and what governance may look like in the future.Sam Bankman-Fried of FTX recently shared that his firm’s involvement in DeFi will be “motivated by short-term profits and is not seeking to have a long-term impact in protocols via governance.” In doing so, he argued that he’s simply using DeFi protocols for their intended....
A new game mode will also be launching on the platform in early 2021, where players can own pieces of land and farm governance tokens.
Uniswap processed $15.3 billion in monthly volume in September, outpacing Coinbase and signalling that DeFi is here to stay. Data from Dune Analytics shows that in the month of September Uniswap decentralized exchange processed $15.371 billion in volume. In the same period, reports indicate that Coinbase processed $13.6 billion.Monthly decentralized exchange volume. Source: Dune AnalyticsThe significant spike in Uniswap’s volume can be attributed to two major factors. First, the explosive growth of decentralized finance (DeFi) and yield farming of governance tokens caused decentralized....