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.
References
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
