What Is a Governance Mining Program Designed to Achieve?
Governance mining is an incentive program that rewards users with governance tokens for participating in the protocol's governance process, such as submitting proposals or voting. Its primary goal is to increase voter participation and distribute tokens more widely among the active community.
This helps combat low turnout and strengthens the decentralization of the protocol.
Glossar
Governance Mining
Mechanism ⎊ Governance Mining represents a novel intersection of decentralized governance protocols and incentive structures within cryptocurrency ecosystems, particularly impacting decentralized finance (DeFi) and the evolution of on-chain decision-making processes.
Governance Mining Program
Program ⎊ A Governance Mining Program is a structured incentive initiative designed to distribute a protocol's native governance tokens to users in exchange for specific, value-additive actions, primarily active participation in the decision-making process.
Incentive Program
Mechanism ⎊ Incentive programs within cryptocurrency, options trading, and financial derivatives function as strategically designed protocols to align participant behavior with desired market outcomes, often leveraging tokenomics or premium adjustments.
Governance Tokens
Token ⎊ Governance tokens represent a mechanism for distributing decision-making power within decentralized protocols, primarily within the cryptocurrency and decentralized finance (DeFi) ecosystems.
Voter Participation
Rate ⎊ Voter Participation measures the proportion of eligible token holders who actively engage in on-chain governance decisions relative to the total available voting weight.