10 Questions
What is the purpose of governance tokens in the DeFi world?
To provide voting rights to holders
What is the primary system used to operate DeFi platforms?
A DAO
What can be used to force a new tokenomic schedule into existence?
Hard forking
What is the purpose of hard forking?
To copy a blockchain's codebase
What is not a purpose of governance tokens?
To make backward compatible changes
What is the primary purpose of a DAO?
To operate DeFi platforms
What is not a purpose of hard forking?
To provide access to new projects
What is the primary difference between a DAO and a smart contract?
A DAO is used to provide voting rights to holders while a smart contract is used to operate DeFi platforms
What is not a purpose of a DAO?
To copy a blockchain's codebase
What is not a purpose of hard forking?
To provide financial stability
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 of decentralized finance governance and tokens with this quiz. Learn about the role of governance tokens, DAOs, and the use of hard forking to influence project decisions and tokenomic schedules.
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