Governance Token
Also known as: Voting Token, DAO Governance Asset, Protocol Governance Token
A type of token that grants holders the right to vote on decisions affecting a blockchain protocol or DAO.
A governance token is a blockchain-based digital asset that allows holders to participate in protocol decision-making processes. Common in DAOs and DeFi platforms, governance tokens enable community-driven management by granting voting rights over proposals, upgrades, parameter changes, and treasury allocations. These tokens align incentives among users and developers and serve as a mechanism for decentralized governance. Prominent examples include COMP (Compound), UNI (Uniswap), and MKR (MakerDAO). Governance tokens may accrue value based on their role in decision-making and control over platform revenue or policy.