By 
In distributing substantial strength and authority to decentralized blockchain users, a system is required to ensure only the devoted ones participating in it win the project. Hence it is vital to develop an exclusive and accumulatively managed organization known as DAO or decentralized autonomous organization.
However, DAO needs contributors or members to invest their own money to obtain voting power against the investment. The voting rights will make sure that they all work by fair means for making the DAO winner. Typically, those who invest more have significant voting power under the framework. Then governance tokens are issued to the users to indicate everyone’s stake in the DAO.
We’ll know more about the best governance token in the coming section.
What are the governance tokens?
They offer token holders special rights that may impact the direction of the protocol. The token holders get the right to give opinions about developing any new feature and product, the criteria of spending the budget, pursuing a partnership, etc.
Moreover, governance token holders have the power to put forward any changes via a validated procedure for submitting proposals. The proposal should meet particular standards so that it may go to the voting process. After that, governance token holders exploit their tokens to vote for the proposal of changes. Governance tokens are a vital decision-making system for DAO.
Best five governance tokens to buy
Holding a governance token just may offer the voting right that won’t possess any power impacting the blockchain unless the remaining members support your proposal. Rather than only investing in currency, users are allowed to invest in the protocol. However, governance tokens are inevitable in terms of protecting the community and the investors inside the mechanism of interest.
Here we’ve analyzed the top five governance tokens to trade and invest in.
-
- Colony Lab
- Fantom
- The Graph
- Cosmos
- Kyber Network
Colony Lab (CLY)
CLY price chart
It is a token that is empowered by the community itself. It is the stimulator of the Avalanche ecosystem, which is empowered by the Colony’s native token CLY. It objected to giving funding for commencing Avalanche-developed projects. On the other hand, Colony Lab contributes liquidity to existing Avalanche DeFi protocols.
Colony Lab’s price has been trading below the $0.3381 price area for an extended period. After hitting an all-time high of $2.40, the bears regained momentum and pushed the price downside quite impulsively.
Is it has the potential to grow?
The most extraordinary aspect of the token is based on the community. It has supporting poles; the first is the infancy level deal with past organizations and investors. Besides the second pole is the DAO. The elementary aims are intensifying the liquidity of the Avalanche ecosystem and the robustness and security of the network by utilizing staking. Colony Lab’s price may reach at least a $1.80 price area in 2022.
Fantom (FTM)
FTM price chart
It is an open-source smart contracts platform for dApps and digital assets to facilitate lending, trading, and borrowing. It has a network structure that provides the applicable solution to an argument analogous to presenting three alternatives in the blockchain premises. Having this kind of network is the main reason that Fantom is emerging.
Fantom is objected to offering balanced security, strength along with decentralization. It has Lachesis- a unique consensus system that boosts the transaction speed. Lachesis settles the transactions in just about two-three seconds, charging a fraction of a cent. Also, it does not require any management body since it is instrumental in terms of DeFi.
Is it has the potential to grow?
After rejecting a $3.40 psychological event area, the bears pushed the price below the $1.20 price level. As per the current price action, FTM may find support around the $1.040 price area in the coming days. This crypto price may reach at least a $2.00 price area in 2022.
The Graph (GRT)
GRT price chart
The Graph is a decentralized project for blockchain data to be inquired about and indexed. Similar to the google data index, Graph also functions on the web in terms of boosting accessibility. Therefore, it indexes the data from Ethereum blockchains and Filecoin blockchains. However, it had the capability to index Ethereum in the past. But after being tested by the NEAR blockchain, the graph started to run on blockchains that are incompatible with Ethereum.
The Graph gathers data in subgraphs that are open APIs to make accessible required data to DeFi applications so that the developers may work efficiently. It has added a smart-contract-supported screening layer of blockchains. The screening layer also supports data indexing from Ethereum, IPFS, and POA.
Is it has the potential to grow?
GRT is currently trading around the $0.3615 price area and trying to push upside. After bouncing from the $0.30 price area, the bulls have regained momentum but failed to break over the $0.50 psychological level. The Graph price may reach at least a $0.80 price area in 2022.
Cosmos (ATOM)
ATOM price chart
Cosmos is a top-tier governance token that provides an innovative solution to the venerable issues of the possibility of interacting with the blockchain. It implies that Cosmos helps blockchains to compete in terms of talking with one another. Cosmos has its domestic digital token known as ATOM.
The most special aspect of Cosmos is that it allows extracting and sharing data from one blockchain to another blockchain. It is a rising concept consequent Cosmos turning into one of the highly regarded projects.
Cosmos (ATOM) price prediction 2022
Cosmos is currently residing near the $23.02 price area and trying to continue downside. However, the price may find support around the $20 price area in the days ahead. Cosmos’ price may reach at least a $35 price area in 2022.
Kyber Network (KNC)
KNC/USDT price chart
Kyber Network is a decentralized and on-chain liquidity protocol that offers to boost up smooth and uninterrupted token swaps in DeFi with high liquidity. It is needed because trading DeFi coins is fragmented since the tokens proliferate to numerous exchanges. Hence, Kyber intends to obtain a fully connected liquidity network throughout numerous blockchains and provide seamless inter-blockchain token swaps.
Kyber Network can extract intense liquidity from platforms like Uniswap, Pancakeswap, SushiSwap, and so on. It guarantees that Defi coins give adequate market conditions for sellers and purchasers. Also, Kyber’s long-term aim is to reinforce the various rising digital ecosystems by expediting liquidity between multiple stakeholders in every ecosystem.
Is it has the potential to grow?
Kyber Network is currently trading around the $4.99 price area and trying to continue further higher. After bouncing from the $1.50 price area, the bulls have regained momentum and pushed the price upside quite impulsively. Kyber Network’s price may reach at least a $10 price area in 2022.
Final thought
To conclude, there are certainly some hurdles related to the concept of governance tokens. But the good news is that organizations are developing advanced concepts for resolving the issues. Eventually, blockchain will become more efficient and will function smoothly along with the support of all of these concepts.
Comments