Can the Black-Scholes Model Be Adapted to Value the Option-like Features of a Governance Token?

Yes, a governance token can be viewed as an option on the protocol's future cash flows or treasury. The Black-Scholes model (BSM) can be adapted, though its assumptions are often violated by crypto's non-normal returns and non-constant volatility.

The token itself can be seen as a call option on the network's future success. Specifically, the right to vote on proposals that generate revenue or access a treasury is a real option.

BSM helps quantify the value of this optionality, using the token's price volatility as the input for implied volatility.