DeFi Development Services Posted October 11, 2022 Report Share Posted October 11, 2022 In general, the term governance means how some company or organization is controlled and directed. In the case of DAO- Decentralized Autonomous Organization, governance holds the same meaning but in a top-down approach in blockchain projects. In decentralized world, governance tokens hold the power to control which is common for DAOs and DeFi’s- Decentralized finance. Governance tokens are crypto tokens which interact with the smart contract of a blockchain to grant the owner voting powers of the project. This means whosoever holds a token holds the power to act in the protocol working. Usually, one token refers to one vote. The model that DAO governance tokens represent offers an equitable, decentralized and transparent governance method. Quote Link to comment Share on other sites More sharing options...
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