Governance Tokens
Plain English
Tokens that give you voting rights in how a protocol is run. Like shares in a company that let you vote on important decisions. Holders can propose and vote on changes to fees, features, and how the treasury is spent.
Technical
Tokens representing voting power in decentralized protocol governance. Holders can propose and vote on protocol parameters, treasury allocation, upgrade proposals, and strategic decisions. Governance tokens enable decentralized decision-making but face challenges with voter apathy, plutocracy (wealth-weighted voting), and coordination complexity.