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A token initially used solely for governance may face utility deficiency issues. Limited use cases can reduce demand, leading to low adoption and value. Governance tokens often lack intrinsic utility beyond voting, which may not sustain long-term engagement or incentivize holding. Without additional functionalities—like staking, payments, or ecosystem integration—the token’s value proposition weakens, risking obsolescence. Expanding utility through incentives, partnerships, or broader ecosystem roles can mitigate this. Analyzing similar tokens on X or web data could reveal trends, but governance-only tokens often struggle without evolving utility.
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