How Do Governance Tokens Differ from Utility Tokens in the Context of a DAO's Treasury Management? ▴ Learn

How Do Governance Tokens Differ from Utility Tokens in the Context of a DAO’s Treasury Management?

Governance tokens grant holders voting rights on proposals that affect the DAO's future, including treasury allocation. Utility tokens are used to access a product or service within the ecosystem.

A DAO's treasury management is directly controlled by governance tokens, as holders vote on how to deploy or secure the assets, whereas utility tokens are primarily an operational expense or revenue source.

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