In order to participate in protocol governance at the moment, token holders must stake the protocol’s native token, which reduces the circulating supply and capital on decentralized exchanges. Under the new model, holders can stake Balancer Pool Tokens (BPTs), allowing them to take part in governance proposals while the underlying protocol’s token remains in the pool to provide liquidity to swaps.
Aave, Radiant Among Firms Adopting Balancer’s 8020 Initiative for Tackling Lack of Liquidity in DeFi
