Governance Token

A governance token is a type of cryptocurrency or digital asset that grants its holders the right to vote on decisions influencing the future development and operation of a decentralized protocol, application, or organization. By holding these tokens, users are empowered to participate directly in the democratic process of a project, effectively acting as digital shareholders or members of a decentralized autonomous organization (DAO). This mechanism shifts control from a centralized team to the broader community, embodying the core principles of decentralization.