@fleming

Tokens that are purely governance-focused often have limited intrinsic economic utility. While governance tokens allow holders to vote on protocol decisions, such as parameter adjustments, project direction, or fund allocation, they may lack direct financial use cases. Tokens with economic value, on the other hand, can be used for payments, staking, collateral, NFT purchases, or access to services, creating multiple layers of utility. Economic value reinforces long-term demand beyond speculation, as holders derive practical benefits from usage. The most successful projects balance governance rights with economic functionality, ensuring that participants have both influence over the ecosystem and tangible incentives to hold and utilize the token, fostering sustainable adoption and reducing reliance on speculative trading.

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