Governance Tokens: What Are They and How Do They Work?

In the world of DeFi, we can't talk about cryptocurrencies and web3 without mentioning the utility of governance tokens. While most crypto investors focus on non-fungible and blue-chip cryptos, there are a wide range of tokens to consider, including security tokens, utility tokens and platform tokens. 

While Bitcoin perennially remains a hot topic in the crypto scene, governance tokens preserve a critical aspect of decentralization. Not only can governance token holders help shape a protocol's future, but they also bring the community’s members closer. This guide offers a detailed overview of governance tokens and how they work.

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