Imagine a video game with two types of coins: gold and silver. Gold coins (let's call them governance tokens) are rare and valuable, used for voting on game rules or owning a piece of the game. Silver coins (utility tokens) are more common and used for everyday purchases within the game.
A dual-token economy in blockchain works similarly. Crypto projects use two tokens:
Utility Token: This is like in-game currency, used for buying things or performing actions within the project's network.
Governance Token: This is like a VIP pass, allowing holders to vote on decisions and potentially influence the project's future. It's also used for fundraising.
