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What Is a “Governance Token” and How Does It Confer Power?

1 token = 1 vote. Protocol control propto holdings. Incentive alignment checkmark.
Greeks.Live29.10.25

What Is a “Governance Token” and How Does It Confer Power?

A governance token is a cryptocurrency that grants its holder the right to vote on the future direction and parameters of a decentralized protocol. The power conferred is typically proportional to the number of tokens held (one token, one vote).

It aligns the incentives of the users with the long-term success of the protocol.

What Is the Incentive for a Token Holder to Participate in DAO Governance?
How Does ‘Vote Delegation’ Work in a DAO?
How Does a Decentralized Autonomous Organization (DAO) Govern a DeFi Derivatives Protocol?
Explain the Concept of “Forking” a Protocol after a Contentious Governance Vote

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