10 Questions
What is the purpose of governance tokens in the DeFi world?
To grant holders voting rights
What is a DAO?
A decentralized autonomous organization
What is a hard fork?
Copying a blockchain's codebase
What is the purpose of hard forking?
To create a new tokenomic schedule
What is the main purpose of governance tokens?
To grant holders voting rights
What is the primary benefit of a DAO?
It operates autonomously
What is the purpose of making non-backward compatible changes?
To hard fork existing blockchains
What is the main purpose of a blockchain?
To securely record and store data
What is the purpose of a decentralized application?
To provide a platform for decentralized services
What is the primary benefit of a decentralized exchange?
It allows for decentralized trading
Study Notes
- Governance tokens play an important role in the DeFi world, granting holders voting rights to influence the future rules and decisions of a project.
- DeFi platforms rely on DAOs – a governance system that relies on token governance – to operate.
- If a project's governance is poor, hard forking – copying a blockchain's codebase and making non-backward compatible changes – can be used to force a new tokenomic schedule into existence.
Test your knowledge on decentralized finance (DeFi) governance tokens, DAOs, and tokenomics. Learn about the role of governance tokens in influencing project decisions and the potential solutions for poor governance, such as hard forking.
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