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What Is “Governance Token” Utility?

A Governance Token grants its holder the right to vote on proposals related to the future development and operation of a decentralized protocol, such as changes to fee structures, treasury spending, or smart contract upgrades. Holding more tokens typically grants proportional voting power, allowing the community to steer the project autonomously.

How Does a Tokenized Security Handle Voting Rights When the Underlying Asset Has Governance Features?
What Is the Function of a ‘Governance Token’ in a DeFi Protocol?
What Is the Role of ‘Governance Tokens’ in the Evolution and Parameter Setting of an AMM Protocol?
What Is the Concept of a ‘Governance Token’ and Its Legal Standing?