Governance Token
Last updated 17 October 2026Last verified 17 October 2026
What is a governance token?
A token conferring voting rights on protocol parameters. Value depends on whether governance controls meaningful revenue or risk. Many governance tokens control neither: the team retains veto power via multisig, and the protocol generates no fee revenue to distribute. Assess what governance actually controls before treating it as a value driver.
TradFi equivalentA voting share with no dividend and no board owing anyone a duty. Its value turns entirely on whether the vote controls revenue or risk, and often it controls neither.