What is a Governance Token?
Governance tokens give holders the right to vote on protocol changes, parameter adjustments, and treasury allocations.
Examples
- UNI (Uniswap)
- AAVE (Aave)
- COMP (Compound)
- CRV (Curve)
Vote-Escrow Model
Many protocols use vote-escrow (ve) tokens where locking for longer grants more voting power (e.g., veCRV, veBAL).