Airdrops are free coins or tokens given to people who had performed a task required to be eligible for the airdrop. Then governance tokens are tokens for governance activities. Governance activities are voting activities by the community regarding choosing what they want in the crypto projects. So governance tokens are tokens that gives community members voting rights. The higher the number of governance tokens you have, the higher your voting power. Voting is not equal in this case, more governance token more voting power. This is not like the regular political voting we know where John’s vote power is equal to Jessica’s vote power.
Governance tokens have value in crypto, because they are traded and have liquidity. It’s like a culture that when airdrops are airdropped to people, they dump it so hard, because at that moment they see it as free money and they are eager to spend it. At that moment, they are selling their voting rights.
Airdrop times are times to wait and get governance tokens for a very low price if you believe in a project and want to get a lot of the tokens at a very cheape price. Lots of people are ready to trade all their voting rights and power for money without feeling bad. It’s an unethical thing in real life political activity but in crypto it’s absolutely normal.
Big Value Holders Get Considered
Governance tokens are supposed to help make a project grow when the communities use it. They are airdropped to communities just so they can help add value to the project. When they are airdropped to people, the devs are almost practically saying “please we are giving you this voting right that worths money for free so you can help us make decisions towards growing and developing the community and project”. People that really care about the project feel this way.
It will only take a sentimental attachment to a project to not consider dumping the governance tokens airdrop. Just like $Ape tokens airdropped to bored ape NFT holders. This $Ape token is the governance token for the bored ape verse, which helps the dev team communicate with the community and let them decide on what they want in the community. Few days ago the holders exercised their voting rights by voting on ape to remain on the Ethereum blockchain.
Projects get built for the communities, without the communities there won’t be demand or value attached to the project. So the only way to communicate with the community is through governance voting with governance tokens. This is the only way they make fair decisions and the decisions of the highest token holders get considered because they obviously invested a lot . This means that they are trying to protect their investments.
During the liquidity yield voting on poly cub, we saw someone buy 30k POLYCUB and staked in XPolyCub to vote for their preferred liquidity pool and that got them the highest vote and it was considered. That shows you the duty of governance token holders. To vote in trying to make the project favor them. But when they dump it, how will the team work on things to favor them ?