What is a governance token?
“Governance tokens are cryptocurrencies that represent voting power on a blockchain project. As of recently, they are mostly integrated into DeFi projects since they need to distribute powers and rights to users in order to remain decentralized.”
Quote from: https://academy.shrimpy.io/post/what-are-governance-tokens
As DeFi becomes more proliferated with each passing day, the common element between the different Dapps in the space is governance. Governance in the DeFi aspect, refers to the controlling of the particular platform by a community of token holders, each with votes that are either proportionate to the number of tokens they hold or the roles they play within the Dapp’s ecosystem. METASEER would of course, be no stranger to such a paradigm as the hybrid options platform which the team is attempting to build, falls firmly under the DeFi umbrella.
The METASEER governance strategy
As mentioned in the preceding paragraph, governance structures can be mainly broken down into giving votes to specific roles or giving votes that are proportionate to the number of tokens a holder has. For METASEER, the preferred governance structure, at the moment is the latter. By staking METAG (the governance token in the METASEER ecosystem), token holders will obtain a proportionate number of votes, which they can then use, to vote on a number of issues, these issues are highlighted below:
- Assets to be offered for speculation
- Fees to be collected for options contracts
- Payout Ratio for ITM, OTM and ATM options
- Fee Currency
- Payout Currency
- Acceptance of projects into the METASEER ecosystem
- Partnerships and Collaborations
These are just some of the issues which token holders can hope to be able to vote for, but it will be rolled out in phases. Not all issues will be made available to vote on, right from the start. In addition, the issues to be voted on will be decided by the project team, so as to protect the integrity of the voting process and to preserve the intended developmental direction of the entire project. It is a win-win situation where token holders and project leads will work hand-in-hand to drive the platform forward.
Why is METASEER so concerned with governance?
Truth be told, governance is not a compulsory element for the day to day operations of the project, it is however, critical and imperative towards the long term success of the project. The METASEER team believes that open discussion and an active involvement of stakeholders (token holders) will help to expand the team, recruit new talent and avoid potential deadly blind spots. It is also useful in making sure that stakeholders feel an incentive to assist in the project’s growth. While governance may slow down certain processes as major decisions require voting to be passed, it is still beneficial to involve the community because the METASEER team has seen more than enough examples of how dedicated communities can help to grow a project faster than it would ever have imagined.
The METASEER voting process
To participate in the governance process, users will need to stake their METAG tokens in exchange for voting tokens, every METAG token staked will equate to 1 voting token. After the voting tokens are used to cast votes, the voting tokens are burned and post voting, all users can un-stake their METAG tokens and carry on as per usual. The exact mechanisms are still in discussions and subjected to change if necessary.
Thank you for your time and please do Follow METASEER on social media:
Website | Telegram | Discord | Linkedin | Twitter | Github | Whitepaper
