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What Is the Role of ‘Governance Tokens’ in the Evolution and Parameter Setting of an AMM Protocol?

They grant voting rights to holders, enabling decentralized community control over protocol parameters and evolution.
Greeks.Live06.11.25

What Is the Role of ‘Governance Tokens’ in the Evolution and Parameter Setting of an AMM Protocol?

Governance tokens grant their holders the right to vote on proposals that determine the future of the AMM protocol. These proposals can include changing trading fees, adding new liquidity pools, adjusting reward distribution, or upgrading the smart contracts.

This decentralized decision-making process ensures that the protocol evolves according to the wishes of its community, not a single centralized entity.

How Do Governance Tokens Work within a DAO?
What Are the Mechanisms for Distributing Governance Tokens to Align Community Incentives?
What Is the Role of a Governance Token?
How Does a Decentralized Autonomous Organization (DAO) Use Tokens?

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