How Does a Governance Token’s Utility Translate into Financial Value?

A governance token's financial value is derived from the ability of its holder to influence the protocol's economic parameters, such as fee structures, treasury allocation, or reward emissions. The value is often proportional to the value of the assets governed (TVL) and the potential for the token to capture future value through fee revenue or buybacks.

It's a call option on the future success and revenue stream of the underlying protocol.