Token Financing
From Fintech Lab Wiki
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:
Even though the initial 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
