What is Governance token?
A token that grants voting rights over a protocol's parameters and treasury.
Governance tokens turn users into voters. What the vote actually controls — a treasury, a fee switch, an upgrade key — varies enormously between projects.
Check the quorum and the timelock. A token whose vote can be overridden by an admin key is a signal, not a say.
Related terms
On-chain governance by token holders, usually with proposals, votes and a treasury.
- Utility tokenTokens
A token meant to be used inside a product, for fees, access or collateral.
- AirdropOn-chain
Free tokens distributed to wallets, usually to reward past use or to bootstrap a protocol.