Governance Token

Governance tokens are tokens that give users or holders the right to vote on issues that will decide the fate of a project since it’s decentralized and the higher or bigger tokens one has the stronger the vote value. Governance tokens help to make decisions easy and when the voting is done, there will be no objecting to decisions the voting fell in favour of and it helps align everyone's interests.

Governance tokens are replacing or serving as a board of directors just as centralized companies have where the board members have to be present to agree on the next step or decisions to make for the future of the company. So in order words governance tokens helps decide the future of the decentralized project but the question I want to ask is, can it be used to vote out a user not to partake in voting?

Governance tokens are commonly used in decentralized autonomous organizations (DAO) and one token usually equals one vote

Hive Witness

We have already seen what the governance token is all about now let’s look at what the Hive Witness is all about. The Hive platform has a certain group of people called the Hive Witness, the group of people who help secure the Hive blockchain against cyber-attacks and any outsider body that is not centralized.

When the blockchain needs an update or changes, these witnesses are the ones in charge to take care of it after consensus voting is done to decide on it and an example of such an update is when the Hive Backed Dollar (HBD) APR was changed to 20%. The Hive Witness gets their power or authority through the users voting for them or when they stake their Hive to Hive power, this enables them to take care of the tasks necessary to have or operate the peaceful decentralized platform.

To vote for Hive Witness you can check them out here: https://wallet.hive.blog/~witnesses

A general question

Is Leofinance $LEO and Hive $HIVE a Governance Token?

Posted Using LeoFinance ^Beta