MEMECOINS > GOVERNANCE TOKENS

Summary from the TLDR Crypto newsletter

Governance tokens are essentially memecoins as they do not have revenue sharing and are not effective at community-oriented decision-making. Since they launch at massive VC-backed valuations, they prevent retail investors from getting a fair acquisition price. Memecoins are evolving into their own asset class, facilitating capital coordination and early community formation, before later becoming the backbone for decentralized protocols. Though VCs deserve profit for the risks they take, the investment process should be more transparent and open.