TVL (Total Value Locked) in DeFi protocols surpassed $240 Billion by the end of 202
Some of them go even further to empower their community and allow them to participate in votes regarding the foundation of the chain to give the individual investors the most decisive power possible.”LONDON, UK, February 9, 2022 /EINPresswire.com/ -- Over the course of the last two years, the TVL (Total Value Locked) in Decentralised Finance rose from around $600 Million to over $240 Billion by the end of 2021.
This incredible growth shows the appreciation that crypto users all over the world have for DeFi services and proves the desire to take control of their own funds.
The question arises though, how does DeFi pay back the trust that it has earned by the crypto community and investors all across the globe.
Yield Farming and other monetary incentives are great but it doesn’t embody the idea behind Decentralisation.
With more and more money flowing into these Protocols, projects start to think about how they can empower their investors and give back to the community that enabled them to rise to the highly adopted projects they are today.
A good example for that are blockchain projects based on Nominated Proof of Stake (NPoS) that allow investors to use their funds to vote on important matters like deciding which projects are allowed to launch on their chains.
Some of them go even further to empower their community and allow them to participate in votes regarding the foundation of the chain to give the individual investors the most decisive power possible.
Projects like Polkadot, Kusama, SwapDEX and Kusari make use of an elaborated governance system where virtually every user can propose changes to the chain or request funding for particular projects that can benefit every investor.
These are very interesting user-centric approaches that might lead to a lot of projects having to rethink how to appreciate their investors with the risk of falling behind very quickly in the ever-developing space that is crypto.
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