The idea that a token should be valuable because it conveys governance rights is pathological, according to Buterin, co-founder of ETHUSD, Vitalik Buterin. People are buying governance token in hopes that someone will buy it and be able to twist the protocol in their favor in the future, according to Buterin.
A governance token is a token on the Ethereum network that is used as a digital voting chip for community proposals. The number of tokens that a person holds is a factor in the voting power of a person.
Vitalik is concerned that governance token could be stockpiled or sold for profit, so he relinquished control of protocols to entities, an idea contrary to decentralization. He is opposed to speculating on the future value of governance token based on perceived future value.
As a regular individual, ''pay $500 to get a 0.0001% chance to influence the outcome of some votes is just not a good trade. The only people for whom it is a good trade are multimillionaires and hedge funds, including attackers he tweeted.
Price Action: ETH was trading at $1,271, up 7.87% in the last 24 hours, according to Benzinga Pro.