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Home/Glossary/Governance token
Tokens & tokenomics

Governance token

In shortA token that gives holders voting rights over a protocol's decisions.

UNI, AAVE and ARB are governance tokens. Voting rights alone don't guarantee value; check whether the token also earns fees or has other uses.

← GMAll terms A–ZGwei →

Related terms

  • DAO (decentralized autonomous organization)An organization run by token-holder votes and smart contracts rather than a traditional management structure.
  • Token (vs coin)A crypto asset issued by a smart contract on an existing blockchain, as opposed to a coin, which is the native asset of its own chain.
  • TokenomicsThe economics of a token: supply, who holds it, how new tokens are released and what the token is used for.

More in Tokens & tokenomics

  • Airdrop
  • Cliff
  • Exchange listing
  • Fully diluted valuation (FDV)
  • Memecoin
  • NFT (non-fungible token)
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