Question

What is a governance token?

Answer 1

A governance token is a type of cryptocurrency token that is used to participate in the governance of a decentralized platform or protocol. Holders of governance tokens typically have the ability to vote on proposed changes, upgrades, and other decisions related to the platform. This allows token holders to have a say in the direction and future development of the project.

Answer 2

A governance token is a type of cryptocurrency token that is used to participate in the governance of a decentralized autonomous organization (DAO) or a decentralized finance (DeFi) protocol. Holders of governance tokens can vote on proposals or decisions related to the project, such as protocol upgrades, changes to parameters, or allocation of funds. Governance tokens give holders a say in the direction and decision-making process of the project.