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Why this is important to investors
In my view, this is important to investors for a couple of reasons.
It’s akin to assessing the credibility of the manage…
Start your formal crypto education for free and earn tokens at https://cryptoversity.com/
---
Why this is important to investors
In my view, this is important to investors for a couple of reasons.
It’s akin to assessing the credibility of the management team in charge of a publicly traded company.
In that scenario, part of your decision on whether to buy the stock is whether you have faith in the management team to make good decisions and steer the company in a positive direction, which ultimately has a positive impact on the share price.
Through what I’m going to cover today, hopefully you’ll see how decisions of a superior quality can be gotten from decentralized governance and thus how crypto projects with these kinds of governance systems should have a higher success rate and greater longevity.
The key to decentralized governance lies in its flexibility.
By that I mean, the greater the number of people a decision is spread across the better, that’s the basis of democracy for example.
By contrast, there are plenty of companies that have failed or been out innovated because a small group of executives just couldn’t keep up with the times.
Isn’t this the same as shareholder voting rights?
Now I know what you’re going to say…
“Isn’t this the same as a stock with voting rights?”
In some ways yes, but blockchain technology facilitates stakeholder voting in a way that has significantly less friction and allows a wider range of people to participate.
So how does decentralized governance work?
Now like I always say, “There is nothing new under the sun”.
Modern coin offerings are just a blend of two concepts, IPOs and crowdfunding.
With traditional crowdfunding, you propose a product, get the funding upfront to make the product, and then deliver the product to the funders upon completion.
The benefits being that it’s low risk for both sides, and you get to test the market to see if there is sufficient demand.
If the project doesn’t get enough funding, then maybe the..
