Governance Tokens in the Concept of Electronic Government

Abstract

The purpose of writing the article is to evaluate the effectiveness of the use of go­vernance tokens in the concept of electronic governance. We have found that traditional approaches to resource allocation and decision-making in the field of e-government often face a number of challenges, such as bureaucratic difficulties, lack of transparency in processes, and limited means of stimulating active participation from stakeholders. Governance tokens are defined as a form of cryptocurrency that gives holders the ability to influence the decision-making, management, devel­opment, and ecosystem of a particular blockchain project or decentralized platform. The study de­scribed the main aspects of governance tokens. We revealed the essence of governance tokens in the context of electronic governance. Also, we have found that governance tokens can be imple­mented through various technologies, including blockchain, smart contracts, and other digital so­lutions. The study turned out that blockchain has recently become a transformative technology, one of the latest participants in the comprehensive ideology of «smart cities». We emphasized that the use of blockchain technology raises significant privacy concerns, as many e-government services involve personal data that must be properly protected to avoid situations where the blockchain could become the target of attacks by attackers trying to obtain unauthorized access to the personal information of citizens. The study presented modern examples of the use of governance tokens in the world. A SWOT analysis was conducted to identify the advantages and disadvantages of using governance tokens in the concept of electronic governance. The study established that the use of governance tokens in e-governance has its advantages, such as decentralization of decisions and encouraging participa­tion, but also its challenges, such as technical barriers and the risk of vulnerability to manipulation. We noted that when implementing this approach, it is important to carefully balance the benefits and risks to ensure effective and sustainable e-government.