A token that grants holders voting rights over protocol decisions. Can cover parameter changes (fee rates, collateral factors), treasury allocation, and upgrade proposals. Token-weighted voting (one token = one vote) is simple but vulnerable to plutocracy and vote buying.
Tokenomics
Governance Token
Related terms in Tokenomics
Protocol Revenue
Income generated by a protocol's core operations, distinct from token price appreciation. In Uniswap V2, proto...
Token Vesting
A schedule that releases tokens to holders over time rather than all at once. Prevents early investors and tea...
Total Value Locked (TVL)
The total value of assets deposited in a DeFi protocol's smart contracts. TVL is the most common metric for me...