Governance in Web3— part (I)

The governance that exists in our real society actually has been applied to digital places, like Web3 stuffs.

& you already know

governance is simply how someone or a group of people make decisions.

saying this easily in digital aspect,

it's the idea or how I see it, it's the rule that allows token holders to vote on a project's upgrades, parameter changes, and other stuffs that affect how the project will operate.

But the thing now is, holding a token alone won't even grant you voting power.
As funny as it is.

That's because many projects have been using a particular style that chooses who can vote and how much effect or impact per say that each vote will carry.
The style they've been using is what's called STAKING.

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To stake something is as if you're shutting something somewhere or someplace for a specific period of time (could be days, hours, months, whatever).
& By shutting them, you're actually showing commitment to the project.

In return, the project gives you the opportunity to vote on stuffs going on about it, and sometimes you get incentives for staking (all depends on the project itself)

What I've been trying to say is that staking and governance are connected in a practical way.

Governance is the decision-making idea and staking is typically about how the access(that you've gotten already) to the system is granted.

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Now, in the case of StonFi,
when you stake $STON, you are guaranteed to get two things

$GEMSTON & $ARKENSTON

Remember I talked about

"the opportunity to vote on stuffs going on about it..."

$ARKENSTON is the opportunity here.
& I also said

"...sometimes you get incentives for staking..."

In here, $GEMSTON is the incentive StonFi gives to you.

But see, staking is not compulsory.
You can use/interact with the platform/project as it is, without staking any token(s).

Still, if you plan to hold $STON for the long term, staking it can do a lot more for you eventually.

That is the real and easiest connection between staking and governance.