Why tokens matter only sometimes: against pure governance tokens
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Argues tokens fund open-source infrastructure and enable decentralized ownership, but most app-layer protocols do not need one since governance is often the only rationale, and future reputation or DID-based models may supersede token voting.
Key claims
Most app-layer protocols do not need a token
Governance is often the sole reason a token exists
Author avoids pure governance tokens
why do tokens matter (sometimes)?
a few thoughts 馃У馃憞
cryptographic tokens finally enable efficient funding mechanisms for the open-source infrastructure needed to build out #Web3 and they enable tokenized decentralization of ownership & governance as users & builders own pieces of the internet through tokens
that being said, I strongly believe that many protocols (especially app layer) actually don't need a token. Often governance is the only reason a token exists in the first place, which kind of makes sense as we don't rly have a viable alternative to token-weighted governance yet
but I think that will change in the future and there will be many superior governance models (e.g. reputation-based and tied to DIDs). Hence I personally stay away from pure governance tokens (governance is a meme)