Home
News
Looking at the recent airdrops of several project’s governance tokens going to significant failures ignited the conversations about what recipients should consider.
Look over the various recently launched and existing projects’ governance tokens having hundreds of million in their trading volumes. They seem to enter the bearish trend that the overall crypto market seems to be going through at present. Now this week itself the crypto space has experienced yet another opportunity to witness a project fall drastically.
Ethereum network’s scaling solution project dubbed as Optimism, allocated about 5% of its total OP token supply in an airdrop event that included various users on the platform. Those who have received the OP token in airdrop can either hold the governance token and become its DAO members or on top of that can delegate holding of their tokens to someone else. The person who would be delegated the tokens could be selected on the basis of their expertise and knowledge about the project or those who have more time to contribute to the project’s growth.
ALSO READ – Institutions Embrace BTC Amid Slippage & Growing VC Interest In Crypto Sphere: Glassnode Co-Founders
Something similar also happened with Hop Protocol when it airdropped about 20.5 million of its HOP governance tokens. It was received by a significant number of users but after a while holders of the HOP tokens started dumping their tokens resulting in a drastic drop of token’s price after its debut.
Just like a prominent crypto expert at Snapshot Labs, Nathatn van der Heyden said that the values of Optimism’s OP tokens were defined clearly and users were also able to opt in for the governance or delegate it to someone else who matches with their goals and perception. This framework would allow the quality governance following well defined processes that are the keys to steering the community of protocol towards the right direction with even more than good values.
Further crypto guru said that the reason about this tiered system that is used is based on the assumption that all those people who use Optimism Protocol or such adjacent services that are governance in crypto or layer 2 solutions. They are also incentivized to look for the service that continuously improves and thriving towards this, regardless of performance of this token.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
