Skip to main content

How Does a Governance Token Grant Voting Power in a DAO?

A governance token grants voting power based on the number of tokens held by the user. Typically, one token equals one vote, or the weight is proportional to the tokens staked.

This allows token holders to propose and vote on changes to the protocol, including parameters related to the insurance fund, thereby decentralizing the decision-making process.

How Does a Governance Token Grant Power within a DAO?
What Is a Governance Token and How Does It Grant Voting Power?
What Is ‘Token-Weighted Voting’?
What Is a Governance Token and Its Role in a DAO?