Symbiotic, a new protocol competing with EigenLayer in the repledge market, has obtained over $1 billion in locked-in value in less than a month. Symbiotic has also launched some new ideas based on repledging.
Unlocking the True Potential of Governance Tokens
Governance tokens have become the cornerstone of blockchain ecosystems, allowing holders to actively participate in decision-making processes. However, these tokens often face a dilemma: should they be used for governance or as financial assets? The Tally protocol, in collaboration with Symbiotic’s shared security framework, provides a solution that maximizes the utility of these tokens without compromising their primary function.
Governance tokens give holders the power to influence protocol decisions, but this requires locking the tokens, limiting their financial utility. Token holders must choose between participating in governance or using them as collateral in DeFi applications. This calls for a system that can maximize token utility while retaining governance rights.
The Tally protocol addresses this issue by separating governance voting rights from the financial utility of tokens. This allows token holders to:
Maintain governance rights: continue participating in protocol decisions.
Use tokens as collateral: protect the infrastructure network without losing governance capabilities.
Unlock economic opportunities: leverage tokens in new financial domains.
Symbiotic assists the Tally protocol by providing support for custom repledge implementations, which offer significant benefits to protocols and token holders, including DAO protocol tokens.
Customizable security system: protocols can design tailored security measures.
Increased returns: token holders can earn additional rewards by contributing to network security.
Real-Life Use Cases of Symbiotic x Tally
Case Study 1: Advancing L2 Infrastructure
Example: Arbitrum protocol
Case Study 2: Decentralized Security for Interoperable Platforms
Example: Wormhole protocol
Reshaping Blockchain Governance Architecture
Unlocking the True Potential of Governance Tokens
Governance tokens have become the cornerstone of blockchain ecosystems, allowing holders to actively participate in decision-making processes. However, these tokens often face a dilemma: should they be used for governance or as financial assets? The Tally protocol, in collaboration with Symbiotic’s shared security framework, provides a solution that maximizes the utility of these tokens without compromising their primary function.
Symbiotic assists the Tally protocol by providing support for custom repledge implementations, which offer significant benefits to protocols and token holders, including DAO protocol tokens.
Customizable security system: protocols can design tailored security measures.
Increased returns: token holders can earn additional rewards by contributing to network security.
Layer 2 (L2) solutions require decentralized and secure infrastructure. The Tally protocol and Symbiotic enable L2 to support its services with its own tokens, enhancing network security and decentralization.
Pledging: ARB token holders pledge their tokens in the Tally protocol and receive tARB (Tally liquid pledging Arbitrum token).
Collateral: These tokens serve as collateral in Symbiotic, supporting network services such as data availability for L3 chains.
Economic benefits: ARB token holders receive rewards through pledging and can repledge tokens in Symbiotic to gain additional value from fees paid on L3 chains.
Interoperability protocols like Wormhole rely on validators and relayers for asset transfers. The Tally protocol and Symbiotic enhance this setup, particularly the Wormhole Native Token Transfers (NTT) framework.
Liquid pledging: tW (Tally liquid pledging Wormhole token) is created through the Tally protocol.
Enhanced security: tW holders support decentralized guardians and relayers, working in synergy with the guardians’ network.
Ecosystem participation: Wormhole token holders protect their protocol and receive native W pledging rewards, as well as additional revenue from supporting services.
Through the governance repledge solution provided by the Tally protocol and Symbiotic, the key limitations of DAO token utility are resolved, unlocking new shared security use cases. By separating governance from financial utility, this approach:
Unlocks new value: token holders gain new financial opportunities.
Retains governance structure: DAOs maintain control over their protocols.
Facilitates the development of secure infrastructure: strengthening the blockchain ecosystem.
With the evolution of the blockchain space, this innovative solution may impact the future trajectory of decentralized finance and governance, providing a solid foundation for new applications and enhanced protocol security.