How Is Governance Managed in a DAO Using Tokens?

In a DAO, governance is managed through tokens that grant voting rights to their holders. Typically, the more tokens a member holds, the greater their voting power on proposals.

Members can submit proposals for changes or actions, and the community votes on them using their tokens. The rules for proposal submission, voting periods, and what constitutes a majority are all defined in the DAO's smart contracts.

This system allows for decentralized, democratic, and transparent decision-making.