New imagination of governance and re-pledge: Tally protocol and Symbiotic will reshape the blockchain governance structure

This site (120btC.coM): Symbiotic, a new protocol that competes with EigenLayer in the re-pledge market, has obtained more than 1 billion US dollars in lock-up value in less than a month. Symbiotic has also launched some new ideas based on re-pledge.

Unleashing the true potential of governance tokens

Governance tokens have become the cornerstone of the blockchain ecosystem, enabling holders to actively participate in the decision-making process. However, these tokens often face a dilemma: should they be used for governance or as financial assets? The Tally protocol, combined with Symbiotic’s shared security framework, provides a solution to maximize the utility of these tokens without compromising their primary functionality.

Balancing governance and financial utility

Challenges of governance tokens

Governance tokens give holders the power to influence the protocol, but this requires locking the token and limiting its financial utility. Token holders must choose between participating in governance or serving as collateral in DeFi applications. This requires a system that maximizes token utility while retaining governance rights.

Tally Protocol’s Solution

Tally Protocol solves this problem by decoupling governance voting rights from the financial utility of the token. This enables token holders to:

• Maintain governance rights: Continue to participate in protocol decisions.

• Use tokens as collateral: Secure infrastructure networks without losing governance.

• Unlock economic opportunities: Leverage tokens in new areas of finance.

Symbiotic’s role in governance of re-staking

Enhancing flexibility and security

Symbiotic helps the Tally protocol by providing a shared security framework that supports custom re-staking implementations, which can include DAO protocol tokens various types of collateral, providing significant benefits to the protocol and token holders.

Key Benefits

• Customizable Security System: The protocol can design tailor-made security measures.

• Increased Earnings: Token holders can earn additional rewards by contributing to network security.

What are the real-life application cases of Symbiotic and Tally?

Case Study 1: Promoting L2 Infrastructure

Layer2 (L2) solutions require decentralized and secure infrastructure. Tally Protocol and Symbiotic enable L2 to support its services with its own token, enhancing the security and decentralization of its network.

Example: Arbitrum Protocol

• Staking: ARB token holders stake their tokens in the Tally protocol and obtain tARB (Tally liquid pledged Arbitrum tokens).

• Collateral: These tokens are used as collateral in Symbiotic to support network services such as data availability for the L3 chain.

• Economic Benefits: ARB token holders receive rewards for staking and can re-stake tokens in Symbiotic to receive additional value from fees paid by the L3 chain.

Case Study 2: Decentralized Security for Interoperability Platforms

Interoperability protocols like Wormhole rely on validators and relayers for asset transfers. Tally Protocol and Symbiotic enhance this setup, especially Wormhole’s Native Token Transfer (NTT) framework.

Example: Wormhole protocol

• Liquid pledge: Create tW (liquid pledged Wormhole token) through Tally protocol.

• Enhanced Security: tW holders support decentralized guardians and relayers, working together with the guardian network.

• Ecosystem Participation: Wormhole token holders secure their protocol and receive native W staking earnings as well as additional benefits for supporting services.

Reshaping the blockchain governance architecture

Governance re-staking through Tally Protocol and Symbiotic solves key limitations of DAO token utility, unlocking new categories of shared security use cases. By decoupling governance from financial utility, this approach:

• Unlocks new value: Token holders gain access to new financial opportunities.

• Preserved Governance Structure: The DAO retains control over its protocol.

• Promoting security infrastructure development: Strengthening the blockchain ecosystem.

As the blockchain space evolves, this innovative solution may impact the future trajectory of decentralized finance and governance, providing a solid foundation for new applications and enhanced protocol security.

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