A company provides services to its users. Similarly, a protocol provides services to its users.
A company’s shareholders influence how the company is operated. Likewise, a protocol’s tokenholders influence how the protocol is operated.
A company wants to be able to govern its activities separate from other companies. A protocol wants to retain a similar right as well.
Separate Shares and Tokens Are Necessary for Sub-Governance
Without sub-governance anyone with EUR could walk into a random company’s shareholder meeting and vote without owning any of the company’s stock — just because the company’s shares happen to be denominated in EUR.
A separate share or token offers security to an entity’s governance. If someone would want to meaningfully influence the governance of a specific company, they’d have to buy a significant share of that company’s or protocol’s shares or tokens, increasing the price while doing so.
If they subsequently voted to sabotage the company’s or protocol’s operations, they’d be destroying the value of what they just purchased.