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The Mimo Governance Token

The Benefits of Blockchain Technology

How Governance Works in DeFi

Benefits of Governance Tokens

What are the Most Popular Governance Tokens?

  • NFT tokens on the Ethereum Blockchain, created to foster scarcity and digitally differentiated unique products.
  • Transactional cryptocurrencies such as Bitcoin, which with the help of the lightning network, act as a unit of account. This is also the case of Bitcoin Cash, although this cryptocurrency forked from the bitcoin main protocol doesn’t have much adoption at this time.
  • Utility tokens such as Maker that support platform functionality alongside their stablecoin DAI.

How Does Governance Work in Ethereum vs other Blockchain Platforms?

Disadvantages of Governance Tokens and Cryptocurrencies

  • Certain governance tokens and cryptocurrencies allow voters to sell or delegate their voting power by creating delegators that only vote for proposals that favour them. As an illustration, Ethereum nodes require a minimum of 32 ETH to act as validator nodes.
  • For this reason, nodes that hold minimal amounts of ETH cannot participate in governance and have to delegate their voting rights to wealthier nodes. This system is also known as Proof of Stake. On the other hand, Bitcoin uses the Proof of Work system, where there is no delegated voting therefore lessening the opportunities for centralization of power amongst powerful nodes.

The MIMO Governance Token



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