Governance token
A token used in a protocol or organization's decision-making system.
In more detail
Governance tokens can provide voting power or a route to delegation, depending on the rules. Proposal thresholds and execution permissions determine what holders can actually change. The token's decision-making role is separate from company ownership or a claim on revenue; those rights do not arise from the governance label alone.
How you might use it
You delegate your voting power, and your delegate votes on a proposed protocol parameter change under its governance rules.
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