What Is a ‘Governance Token’ and How Does Its Utility Affect Treasury Decisions?
A governance token grants its holder the right to vote on proposals that shape the DAO's future, including decisions about treasury management. Its utility directly impacts treasury decisions by determining who can propose and approve changes to capital allocation, investment strategies, and spending.
The token's distribution and concentration are key to ensuring fair and secure treasury oversight.
Glossar
Treasury Decisions
Context ⎊ Treasury Decisions, originating from the U.S.
Governance Token
Asset ⎊ A Governance Token grants its holders the right to propose and vote on changes to a decentralized protocol's operational parameters, often including modifications to risk models or fee structures.
DAO Governance
Decentralization ⎊ DAO Governance, within cryptocurrency, options trading, and financial derivatives, represents a shift from centralized control to distributed consensus mechanisms for protocol management.