A Dual-Token Structure involves a cryptocurrency project utilizing two distinct tokens, each serving a specific purpose within its ecosystem. Typically, one token acts as a stablecoin or utility token, while the other functions as a governance or collateral token. This design often aims to separate stability mechanisms from protocol control or value accrual. It creates a symbiotic relationship between assets.
Context
The effectiveness and stability of dual-token structures have been a recurring theme in cryptocurrency news, particularly after instances where the interplay between the two tokens failed under market stress. Analysts closely examine these designs for their economic sustainability and resilience during volatile periods. The success of such structures is a key indicator of protocol robustness.
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