DeFi Governance Tokens Face Three Challenges

These include such problems as the concentration of governance tokens in the hands of a few holders, as well as the potential unsustainability of yield farming using governance tokens. The main trend in governance tokens right now is that every major DeFi platform needs to be seen to have one.

NEM Group’s head of trading, Nicholas Pelecanos, told Cryptonews.com that we’ve now reached a point where a governance token is all-but necessary for any aspiring DeFi project. The mention of liquidity mining, yield farming brings us to another problem faced by governance tokens and the platforms using them.

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