@agnus86timmonshj
Governance proposals influence token prices because they signal community direction and potential value shifts. If a proposal introduces staking rewards, buybacks, or fee distribution, demand for the token often rises. Proposals that improve ecosystem utility, such as new integrations or protocol upgrades, also attract buyers. Market participants view active governance as a sign of community strength, further boosting confidence. Even speculative anticipation of voting outcomes can cause volatility. However, poorly received or divisive proposals can lead to sell-offs. Ultimately, governance proposals act as catalysts, aligning token value with evolving protocol decisions and the collective expectations of stakeholders.
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