LIQ governance: What it is, how it works, and why it matters in crypto
When you hear LIQ governance, a system where holders of a liquidity token vote on protocol upgrades, treasury spending, or fee structures. Also known as token-based governance, it’s meant to give users real power over the projects they use — not just buy into. But in practice, most LIQ tokens don’t actually let you vote. They’re just another way for teams to hand out free tokens and disappear.
True decentralized governance, a process where decisions are made by token holders, not founders or venture capitalists. Also known as on-chain voting, it requires active participation, clear proposals, and transparent voting cycles. Projects like Uniswap or Aave built this right — they publish proposals, let people vote with their tokens, and execute changes only if enough support exists. But look at the posts here: Bird Finance, Bagels Finance, FarmHero — all had "governance" tokens that vanished before anyone could vote. The liquidity token, a token issued to incentivize trading on a DEX, often tied to governance rights. Also known as LP token, it’s supposed to align incentives — users lock up funds to earn rewards and gain a say in the future became a marketing tool, not a tool for democracy.
Real LIQ governance isn’t about getting free tokens. It’s about having skin in the game. If you hold LIQ and can vote on whether to change the fee structure, add a new chain, or burn 20% of the supply — that’s meaningful. But if the team holds 80% of the votes, or the voting interface is broken, or the proposal window lasts 3 hours — it’s theater. The posts below show exactly this pattern: projects that promised governance, then went silent. Some had real tech. Most didn’t. Some had active communities. Most didn’t. You’ll see how airdrops like SPWN and QBT were tied to governance claims that never materialized. You’ll see why HERO and CANDY tokens, even if they had voting rights on paper, had zero participation. And you’ll learn how to spot the difference between a project that lets you help shape its future — and one that just wants your wallet address to look legit.
What is LIQUIDIUM•TOKEN (LIQ) Crypto Coin? Bitcoin’s First Runes Governance Token Explained
LIQUIDIUM•TOKEN (LIQ) is Bitcoin’s first governance token on the Runes protocol, enabling decentralized voting and liquid staking without wrapped assets. It powers Liquidium, the largest Bitcoin-native lending protocol, with a unique revenue-sharing model that avoids inflation.
- December 4 2025
- Terri DeLange
- 15 Comments