Do DAO tokens have monetary value?
Asked 4 years ago
Hi, I've started looking into DeFi and DAOs and couldn't help but wonder whether the governance tokens that one has to buy to form part of the DAO hold any monetary value? How else could the be a good investment?
Reid Hart
Wednesday, July 13, 2022
DAO tokens have monetary value since you can trade them on crypto marketplaces. Most DAO projects require members to purchase a certain number of tokens to qualify for membership. For example, social DAO has a minimum purchase requirement of 75 tokens. The principle is that the more the project endeavors to improve, the more investors desire to participate, and the more valuable its tokens become.
Besides, DAO token holders are allocated a given percentage of the transaction volumes on marketplaces, enabling a more stable token user base with a long-term investment mentality. The reward mechanism sets them apart from other crypto tokens, causing more money to flow in.
Uniswap DAO’s UNI token is a good example demonstrating that DAO tokens have a monetary value. Since its launch in 2020, it increased from as low as $0.419 to $44.97 in 2021.
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