The Importance of Governance in Any Crypto Project
Control is one of the first things most people yearn for, but they do not have the chance to exercise it. Instead, most are used to the centralized system they are a part of, with certain entities in control or at least a part of all transactions undertaken on a financial market. Decentralized finance aims to eliminate the power others have in their hands and give it back to the people. It may sound like a slogan from Robin Hood, but in reality, this is the main idea of decentralization.
What Is Governance?
What is governance really? What do people understand through “governance”? By definition, it is the act of governing a state or an organization. The archaic meaning refers to controlling or ruling. In today’s world, people are used to centralized governance, where most of the power is entrusted to specific people or entities. Government institutions are some of the best examples of entities that hold power and control.
In the finance world, most people are used to centralized financing. Most monetary transactions are conducted through banks and regulated by the financial authorities that exercise their control in one way or another. However, even if people are used to this system, this does not mean it is the only option people can use for their transactions. In recent years, decentralized financing has seen significant and steady growth.
Decentralized governance implies the transfer of power to control and make decisions from the individual or entity to the group of people that they influence. Blockchains are the most common tools used in decentralization. The process relies on transferring control from a central entity to the users who are a part of the network.
Governance in Crypto
Many believe cryptocurrency is a way to transform physical money into a digital currency, but it is far more complicated. The main idea behind cryptocurrency is decentralization, meaning the elimination of central governance. This goal can be achieved by transferring the power to the users who are part of the group. They are the ones that can decide the way things work within that organization.
Governance tokens are the first cryptocurrencies that grant voting power in a blockchain. Users with these tokens in their digital wallets can also be considered protocol owners because they have voting power over all the major platform decisions. Moreover, it creates a trustworthy system that goes in the direction set by most users.
DYP Governance and Its Benefits
DeFi Yield Protocol is one of the newest and most diversified projects where users can experience different products of the cryptoverse. We aim to create a revolutionary ecosystem with various tools that help our users with yield farming, staking, NFTs and last but not least, a future Metaverse platform that will combine all our products and much more. Our groundbreaking solutions have made history because we were the first to reward our users in Ethereum.
DYP tokens grant users the possibility to govern together. These voting shares create a diverse and dedicated governance system with users who share ownership of the protocol. This community ensures a steady direction into the future, and they will decide to add pools, burn tokens or create strategic partnerships that will benefit all community members.
The first proposal that was initiated through DYP Governance got executed in March 2021. Since then, the number of Governance proposals increased and our DYPians participated in 23 proposals on Ethereum, 22 proposals on BNB Chain and 8 proposals on Avalanche Chain. Through these Governance proposals on all the networks that DYP is active, the members of our community can participate actively in the development of our project.
Trust is vital within the DYP community. Therefore, the voting system cannot be tampered with or influenced by any outside users without DYP tokens. We employ anti-manipulation solutions to avoid influence from large whale users. In addition, we offer tools that will make the user’s activity on the platform easier.
A safe environment that will guarantee a pleasant experience for every community member!