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  1. Home
  2. /Glossary
  3. /Governance Token
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defi

Governance Token

A token that gives holders voting rights in a protocol's decision-making.

Definition

A token that gives holders voting rights in a protocol's decision-making. UNI, AAVE, and MKR are governance tokens. Some also share protocol revenue with holders, blurring the line between governance and equity.

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Related Terms

DAO (Decentralized Autonomous Organization)

An organization run by code and governed by token holders instead of a traditional management structure.

Governance

The process of making decisions about a protocol's development and direction.

Token

A digital asset created on an existing blockchain rather than its own chain.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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