Many governance sheets lack real power of the chain on protocols and their capital flows. Even when a protocol generates value, it often does not accumulate for the Token, leaving the headlines with few reasons to stay compromised.
If you are building a protocol, you have probably seen this first hand: the government becomes political, extractive and community commitment.
But it doesn’t need to be like that. By connecting governance, incentives and accumulation of value, you can build a system that supports long -term growth and sustainability.
Governance and tokenomics work together: the design of its token affects governance dynamics, while government decisions determine how resources are assigned, how value is created and how it eventually accumulates for the Token.
The protocols that integrate economic incentives in governance see stronger ecosystems where tokens holders actively contribute because they benefit directly from participation, either through rewards, influence or exchange of income.
Liquidity is essential for its protocol. It feeds economic activity, attracts developers and improves user experience. But liquidity alone is not enough: it must effectively go to grow the protocol and its tokens economy.
Governance must play a role in attracting and retaining liquidity, helping its protocol to mature a stage in which you can activate income mechanisms. Once the rate change is activated, governance can use the same infrastructure to direct income flows, turning the government into a growth steering wheel.
To help protocols to create positive feedback loops between governance and accumulation of value, we develop primitive governance that reinforce the value of the accumulation of value for the governance token.
How it works
- Tokens holders bet on the native token to access government rights, reducing circulating supply and sales pressure.
- Governance controls emissions and incentives, creating tangible token and attracting a new demand for protocols that want to direct incentives.
- Improved Token foundations lead to more predictable incentives, attracting sustainable TVL.
- Sustainable TVL improves user experience and combines protocol growth, further reinforcing the foundations of Token.
- As growth stabilizes, the opportunity cost of an increase in increases, maintaining the offer outside the circulation.
In the best case, the well -designed government tokenomics converts the alignment of incentives into sustainable growth. This steering wheel drives both the growth of the network and the accumulation of value, which makes governance tokens an integral part of long -term success.
Defi’s governance has suffered years of iteration. Based on these best practices, we build tokenomics first primitive government in Aragon Osx To help protocols to design sustainable incentive structures.
Voting blocking government (VL): A modular contract library that allows customizable votes, allowing protocols to adjust their government and economic incentives.
Meter governance: A government complement that allows tokens holders to assign the vote power to predefined options at established intervals, simplifying decisions and clarify compensation. Delete a feasible route to optimize and automate the distribution of emissions, incentives and protocol income.
These primitive can be used separately or in combination to create governance models that reinforce the growth and accumulation of value. The benefits include:
- Reward long -term participation and discourage mercenary behavior;
- Return the power of decision making to those with true economic participation;
- Promote the participation of the deepest voters and the participation of the community;
- Management of tokens supply dynamics to support the health of the protocol;
- Provide utility of concrete governance by giving control of tokens holders on financial flows from day one.
Governance is not just about voting, but it is about designing economic systems that maintain participation, align incentives and promote real value to tokens holders.
With the design of the correct mechanism, it can go beyond governance as a passive obligation and make it a tool for protocol growth.
We have been working with projects such as mode and puffer to build governance models that support liquidity, network growth and value accumulation,extend For more information about our services.
