How Do Staking and Governance Rights Affect a Token’s Perceived Intrinsic Value?

Staking rights allow token holders to lock up their tokens to secure the network and, in return, earn staking rewards, which act as a form of yield. This yield provides an economic basis for valuation and reduces the circulating supply, creating scarcity.

Governance rights grant holders a say in the protocol's future development and fee structure. The ability to influence the protocol's economics and the expectation of future rewards significantly enhance the token's perceived intrinsic value, often quantified using a yield-based valuation approach.