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Governance Tokens VS Proof Of Stake - What's The Difference?
Manage episode 339404247 series 3381606
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Proof of stake cryptocurrencies such as Solana, Cardano, and ETH 2.0 allow a decentralized network of participants to maintain the integrity of the network by verifying that transactions follow the rules of the blockchain. If we already have a way of governing the network through proof of stake, then why do we need governance tokens? In this post, I'll use the WAX blockchain and the Splinterlands governance token (SPS) to explain the differences between proof of stake cryptocurrencies and governance tokens and how they are both essential aspects of cryptocurrency. We will also briefly discuss the similarities and differences between governance voting in crypto vs shareholder voting in the traditional stock market. As with all of my videos, this is not financial advice and any use of a specific project/token/chain is simply to provide a tangible illustration of a broader concept. #crypto #sps #cryptocurrency
References
https://medium.com/compound-finance/compound-governance-5531f524cf68
https://www.investopedia.com/terms/v/votingright.asp
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