@martina9778
Economic value enhances a token’s functionality by linking ownership to tangible benefits, such as payments, staking rewards, or access to platform features. Pure governance tokens allow holders to influence protocol decisions but may lack mechanisms that drive continuous demand. When governance and economic utility coexist, participants are incentivized to hold and use tokens, contributing to the ecosystem while exercising decision-making rights. This combination reduces reliance on speculation, fosters genuine engagement, and strengthens the overall stability of the token economy. Projects that integrate economic utility alongside governance provide participants with both influence and practical benefits, promoting sustainable adoption and long-term community growth.
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