Governance Token

A governance token is a cryptocurrency that grants holders the right to vote on decisions that shape the future of a decentralized protocol or organization. These decisions can include protocol upgrades, fee structures, treasury allocations, and partnership proposals. Governance tokens align the interests of users with the protocol's development, giving the community direct influence over its direction. Examples include UNI (Uniswap), AAVE (Aave), and COMP (Compound).