Cryptocurrency Resource DappRadar is about to release its own governance token

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DappRadar, a prominent dApp discovery, and research tool, has announced plans for RADAR, a platform-native coin. Its goal is to assist DappRadar in decentralizing its activities in the future.

RADAR Token 

The RADAR coin was unveiled at an event recently this week in the cryptocurrency VR game Somnium Space. As per a statement, RADAR is a governance token that gives its holders more control over DappRadar’s larger ecosystem.

The cryptocurrency will reward holders for their contributions and engagement in the platform’s development in various ways. This involves participating in decision-making processes, implying that users will become the service’s core.

According to Skirmantas Janukas, co-founder and CEO of DappRadar, the token’s launch is simply following DappRadar’s ideals.

“We built DappRadar around decentralized apps. Decentralization stands at the very core of our success and it’s only right to take it to the next level — true decentralization of DappRadar. Bringing the community closer is the only way to keep ahead of the curve and remain successful in the years to come.”

DappRadar was founded in 2018 and presently tracks over 8,000 dApps on over 20 different blockchains. It also keeps track of price fluctuations and trade volume for some popular NFT collections.

Decentralizing Governance 

Governance tokens have become a more common way to create fairer, more decentralized governance structures in the cryptocurrency sector.

The famous Ethereum system for registering decentralized domain names, Ethereum Name Service, has airdropped a DAO token to transfer governance to the community.  When the new currency was released, its value skyrocketed by 160 percent.

Kart Racing, an upcoming play-to-earn game, launched its governance token sale a few days later. This method of distribution, according to the CEO of Blue Monster Games (the creators), is the future of gaming

However, governance tokens may come with some concerns. Mass selloffs, for example, might impose downward price pressure on smaller holders who actively contribute to the ecosystem of their coin. Moreover, many governance tokens tend to accumulate excessively in the hands of a few whales, essentially making the project very centralized.

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