Who Writes the Rules of a Blockchain?

Harvard Business Review July 23, 2021
Jake Ryan

Summary.

How valuable is the right to vote on the rules that govern a cryptocurrency? With intense focus on the price of cryptocurrencies, another asset — governance tokens — offers investors more than just the possibility of monetary returns: it let’s them help write the rules of particular blockchain. In the absence of a central governing body, decisions about blockchains are left to their users. But not just any users. Early adopters using a new DeFi service can buy (or earn) governance tokens, which provide the holder with the right to vote on how the blockchain is maintained, upgraded and managed. One token, one vote. These tokens often do have monetary value, but the ability to shape the future...

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