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Crypto
Governance Token
A cryptocurrency that gives holders the right to vote on decisions for a protocol or DAO.
Governance tokens are how DeFi projects are governed by the community instead of a central team. Many are also used to earn a share of the protocol’s fees.
It's like owning shares that also come with a ballot paper for every big company decision.
Real world: UNI (Uniswap) token holders vote on fee changes, new features, and treasury spending. Owning more UNI = more voting power.
💡 Holding a governance token means you literally own a piece of the future direction of the project.