Description

This category encompasses tokens used for governance of Decentralised Autonomous Organisations (DAOs) or general utility within a specific project not covered by other categories.

Risks

Voter apathy and whale dominance. Governance is often dominated by a few large holders ('whales') or the founding team. Retail holders rarely have enough voting power to sway a decision. This can lead to voter apathy where the community disengages.

Lack of legal wrapper. Many DAOs operate without a formal legal entity. In the event of litigation or regulatory action, it is unclear who is liable.