3083629: Created page with "One of the most common ways DAOs raise funds is by issuing a fungible governance token, which can be issued and distributed in several ways: #Initial DEX Offerings (IDOs)..."

2023-06-20T09:22:38Z

Created page with "One of the most common ways DAOs raise funds is by issuing a fungible governance token, which can be issued and distributed in several ways: #Initial DEX Offerings (IDOs)..."

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One of the most common ways DAOs raise funds is by issuing a fungible governance token, which can be issued and distributed in several ways:

#[[Initial DEX Offerings (IDOs)]]

Even though the initial [[Token Supply|Token Supply]] of a governance token is usually claimed to be fixed, it can often be adjusted in the future and new tokens can be issued, resulting in an inflationary financing mechanism, and diluting the current holder base. It is common practice to associate a [[vesting period]] to the issued token to stabilize the trading on the secondary market and align incentives of token recipients.

We will discuss the Structure & Economics of Governance token in [[Governance Token]]

Token Financing - Revision history

3083629: Created page with "One of the most common ways DAOs raise funds is by issuing a fungible governance token, which can be issued and distributed in several ways: #Initial DEX Offerings (IDOs)..."