This article will discuss 10 of the top governance tokens list. Governance tokens are tokens created as a crypto asset that give users of a specific platform the ability to vote and decide on happenings on that particular platform.
What are Governance Tokens?
Governance Tokens are the primary crypto asset of a particular blockchain which gives users and participants on the platform the power to decide on important decisions affecting the blockchain.
These tokens move the ability to make decisions from a centralized system to the whole community of participants.
Are Governance Tokens Securities?
Yes, Governance Tokens are considered securities since they have the same qualities as traditional equities, which offers control over a blockchain’s future, significant cash inflows, and decisions on the distribution of the token in the future.
Also, the U.S. securities implied that since Governance Tokens give access for consideration and are initially issued by DAO’s founders, it can be considered a unique type of security.
Top 10 Governance Tokens List
Below are 10 of the top Governance tokens that investors and traders can consider for investment and add to their crypto portfolio.
Uniswap (UNI)
UNI is the native crypto asset of Uniswap, a decentralized exchange platform that enables investors and traders to swap their ERC-20 tokens for other related crypto tokens.
Pancake Swap (CAKE)
CAKE is the governance token for Pancake Swap, a renowned and popularly used exchange platform for swapping and exchanging multiple crypto assets.
Aave (AAVE)
AAVE is the primary crypto asset of the Aave platform, which helps in powering and fostering various decisions made on the decentralized money market protocol.
eCash (XEC)
XEC is the utility token of eCash which is an electronic-based exchange platform that allows for smooth transfer of funds.
Maker (MKR)
MKR is the native token of Maker, which is a lending platform where investors and traders can take loans by fixing collaterals. The token helps to facilitate the Maker Protocol.
Synthetix Network (SNX)
SNX token is a crypto exchange-based asset created and issued by Synthetix, which is a decentralized protocol that is built on the Ethereum blockchain.
Amp (AMP)
AMP is an ethereum based crypto asset that seeks to make transactions on the Flexa network go through faster and more effectively.
Curve Finance (CRV)
CRV Dao Token is the governance token of Curve Finance which is an exchange running on the ethereum network. The platform helps for the exchange and swapping of stable coins.
Decred (DCR)
DCR is the native crypto asset of the Decred network, which is essential in making crypto-related activities go smooth and easy on the platform.
Compound (COMP)
COMP is the governance token of the Compound platform, which is a blockchain protocol that enables users of the platform to borrow and lend out diverse crypto assets.
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Governance Token Vs. Utility Token
Governance tokens are crypto tokens that represent the tool used by investors and traders on a particular blockchain in making decisions that affect the specific blockchain.
They are considered the major utility asset of DEFi protocols since they issue power and authority to users through the token.
Utility tokens are a digital asset consisting of some form of utility but mostly restricted to the blockchain network or platform where it was created.
The biggest difference between Governance Tokens and Utility Tokens is that utility tokens do not issue the power to vote on decisions concerning the blockchain where it resides.
Governance tokens are the ideal token for investors and traders as it is a better improvement than utility tokens.
Governances Token Value
Governance token does not have a specific value as they fluctuate according to price movement in the crypto market.
But even though it does not have an intrinsic value, they are pretty attractive to users, and it accords certain privileges, as discussed above, which are suitable for consideration.
Governance tokens are vital crypto assets that enable holders to vote and contribute to decisions on a particular platform.
These assets are considered to be very valuable as it gives one much privilege on a platform.
We hope this article will help provide you with the best governance token you can consider for investment. Visit our comment section for all your views and opinions.
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