Worthless Governance Token
A tongue in cheek description for DeFi (Decentralized Finance) tokens that became insanely popular in DeFi summer 2020. The term was created in response to the SEC and other securities authority’s passion for prosecuting projects that sell tokens as “shares” in a business without a traditional license to sell shares. To counteract any potential future prosecutions, project leaders often describe them specifically as worthless governance tokens. They usually carry some voting rights, hence the governance part, which provides a utility and reason for them to exist.
“Woohoo!! I’m up 700% year to date on my Maker DAO worthless governance tokens.”« Dictionary Menu