I used to believe that governance and liquidity addressed entirely different issues.
The operation of markets was aided by liquidity.
Communities were able to make decisions thanks to governance.
Though not necessarily connected the two appeared to be related.
The more I learn about Bedrock 2.0 the more I doubt that presumption.
Because liquidity does nt just show up where it is needed.
It adheres to rewards.
It advances in the direction of opportunities.
It reacts to how a protocol coordinates participation and distributes rewards.
This is why the connection between governance and liquidity is so fascinating.
In Bedrock governance is not only about voting on upgrades or protocol decisions.
Governance also contributes to the direction of incentives throughout the ecosystem through tools like gauge based voting and veBR.
To put it another way, governance becomes a part of the process that affects the distribution of liquidity and the flow of capital.
This leads to a new perspective on involvement.
Nowadays voting is more than just an administrative task.
It turns into a mechanism for coordination.
a means for the community as a whole to have an impact on how resources are distributed and how the ecosystem changes over time.
The more I observe the development of BTCFi infrastructure the more I believe that the distinction between governance and liquidity will become more hazy in the upcoming generation of protocols.
Not because the two are identical.
However both are becoming more and more necessary for sustainable ecosystems to function.
One example of how that connection is beginning to take shape is Bedrock 2.0.
#bedrock $BR $VELVET $BEAT @Bedrock
In Br Infrastructure what is the most crucial role of governance?