@augustine44
Tokens with economic value go beyond governance by enabling real utility and transactional functions within the ecosystem. Payment, staking, collateral, and access to services or NFTs increase token demand and promote adoption. While governance tokens provide influence over protocol decisions, economic value ensures that holding the token has tangible benefits. Projects that merge governance with economic utility encourage active participation in both operational and decision-making activities. This dual purpose enhances liquidity, strengthens network effects, and fosters a robust community of engaged users. Investors and participants are more likely to support tokens that offer both governance power and economic functionality, ensuring long-term ecosystem sustainability.
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