@elliott2333
Tokens that carry economic value extend beyond governance influence, providing practical reasons for adoption. They may be used as payment for services, collateral in lending protocols, or rewards in gaming and creative platforms. Economic utility ensures steady demand, as participants need the token for real-world or ecosystem activities, rather than holding purely for voting rights. Pure governance tokens risk volatility, as speculative trading may overshadow engagement. By combining governance and economic functions, projects create circular value loops, where participation, usage, and decision-making reinforce one another. This strengthens retention, enhances token relevance, and supports sustainable growth of the ecosystem.
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