DefineDeFiWeb3 Glossary

Governance Token

A special cryptocurrency that lets you vote on how a project is run. The more tokens you have, the more voting power you get.

Example

Using UNI tokens to vote on changes to Uniswap, like adjusting trading fees or adding new features.

Related Terms

Core Concepts

⚙️How It Works

  1. 1

    Acquire Tokens

    Buy or earn governance tokens from the protocol

  2. 2

    Proposals Created

    Community members submit changes for consideration

  3. 3

    Vote

    Token holders vote for or against proposals

  4. 4

    Execution

    Passing proposals are automatically implemented

❓Frequently Asked Questions

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