THE VALUE OF GOVERNANCE

Summary from the TLDR Crypto newsletter

Much criticism has been put towards governance tokens that do not accrue value or pay dividends. Uniswap's UNI has not paid dividends or collected fees yet. However, the token has a multi-billion dollar market cap and the protocol has a 70% DEX market share, generated $820 million in fees distributed to LPs, and has over 500k DAUs. Though some stocks do not pay dividends and have high valuations yet still earn revenue, some protocols do not collect any fees for their treasury or token holders, so the value of pure governance rights and the potential of a future fee switch is the basis for its worth.