Cryptoeconomics and tokenization are unlocking new models for organization and ownership. The products, services, and platforms emerging from these new models are user-owned and operated, built for and by the communities they serve. These communities are composed of individuals from all parts of the globe, with diverse backgrounds and skillsets.
These global communities are exploring new and innovative ways to build products, foster community, and exchange value using blockchain technology while confronting new challenges around coordination, governance, and decision making.
In order to address these new and novel coordination challenges in earnest, these communities are adopting new and novel tools with which to make meaningful decisions across time, space, and language.
Governance tokens represent ownership in a decentralized protocol. They provide token holders with certain rights that influence a protocol’s direction. This could include which new products or features to develop, how to spend a budget, which integrations or partnerships should be pursued, and more.
Generally speaking, exercising this influence can take two forms. First, governance token holders can propose changes through a formal proposal submission process. If certain criteria are met and the proposal goes to a vote, governance token holders can use their tokens to vote on the proposed changes. The specific mechanisms and processes through which these rights are exercised differ across protocols.
In traditional corporations, a concentrated executive body—typically some combination of a C-Suite, board of directors, and shareholders—has sole discretion over decisions pertaining to the organization’s strategic direction.
Concoin differs from traditional corporations in that they don’t have a centralized group of decision-makers, but they still need to make decisions that influence the organization’s future.
When a Concoin proposal goes to a vote, governance token holders have the opportunity to place their own vote on the blockchain. Typically, the weight carried by a token holder’s vote is proportionate to the number of tokens they hold. For example, if Alice holds 100 tokens and Bob holds 50 tokens, Alice carries twice as much voting power as Bob.
CConcoin's governance holders have certain rights that influence Concoin's direction. This could include which new products or features to develop, how to spend a budget, which integrations or partnerships should be pursued, and more.
As Concoin use increases in prisons across America, the early states who adopt Concoin will have the most governance tokens (voting rights).
Besides the states, each prison that Concoin is in will designate a governance token holder to represent inmates in that facility.
Governance tokens fall under the umbrella of utility tokens. In short, a utility token can be used to exercise certain rights or to access products/services offered by a protocol. The utility conferred by governance tokens is the right to influence a protocol’s direction.