@elizabeth69
Tokens with combined governance and economic utility provide strategic advantages for projects and holders. Pure governance tokens confer voting rights but may struggle to maintain liquidity or attract active users without additional functions. Tokens with economic value, however, enable staking, payments, DeFi participation, or NFT transactions, increasing practical usage. When both features coexist, holders engage in governance while benefiting from tangible utility, creating deeper alignment with ecosystem goals. This dual functionality encourages retention, promotes adoption, and strengthens the overall network effect. Projects with multifunctional tokens can better balance user engagement, governance influence, and economic incentives, ensuring the ecosystem remains vibrant, functional, and sustainable over time.
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