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What is the purpose of a governance token?

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The purpose of a governance token is to give holders the power to participate in decision-making processes within a decentralized autonomous organization (DAO) or a blockchain protocol. Holders of governance tokens can vote on proposals, such as changes to the protocol, funding allocations, or other key decisions that affect the ecosystem.
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Governance tokens are used to allow holders to participate in the decision-making process of a decentralized platform or protocol. Holders of governance tokens can vote on proposals, such as changes to the protocol, upgrades, funding allocation, and other key decisions that affect the platform. This decentralized governance model helps ensure that the community has a say in the direction and development of the project.

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