What are governance tokens in Web3?
Governance tokens are tokens used within web3 ecosystem to enable decentralized decision-making. These tokens grant holders voting rights in the governance of a protocol or platform, allowing them to participate in key decisions such as protocol upgrades, changes to rules, or how funds should be allocated. Governance tokens are typically issued by decentralized autonomous organizations (DAOs) and give the community a voice in the project's direction, ensuring that decisions are made collectively rather than by a centralized entity.
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