# Governance Token

> A token that gives you the right to vote on changes to a crypto project, usually a DAO.

Canonical URL: https://fudfomo.co/glossary/governance-token
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A governance token represents voting power inside a project, most often a DAO or DeFi protocol. The more you hold, the more weight your vote carries on proposals.

Governance tokens are usually distinct from a project's stablecoin or payment token. Some pay no income at all; their value is purely the right to influence decisions. How much that is worth depends on how active and credible governance actually is.

## Related terms

- [DAO](https://fudfomo.co/glossary/dao): Decentralised autonomous organisation. A group whose decisions and treasury are managed on a blockchain.
- [Token](https://fudfomo.co/glossary/token): A unit of value created on top of an existing blockchain like Ethereum.
- [Tokenomics](https://fudfomo.co/glossary/tokenomics): The economic design of a token: total supply, how it is distributed, and how it changes over time.
- [DeFi](https://fudfomo.co/glossary/defi): Decentralised finance. Apps that offer lending, trading, and saving on a blockchain instead of through a bank.

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