What Is a Governance Token?

What Is a Governance Token?
In the decentralized world of blockchain, projects are often looking for ways to distribute a greater amount of power and responsibility to their users. But in order for that to work, they need to employ a method that guarantees only users who are seriously committed to the success of the project participate in it.One way to achieve that is to create a special type of collectively managed organization known as a decentralized autonomous organization (DAO) and require participants to invest their own money in exchange for voting powers to ensure they all act honestly and the DAO prevails. Usually under…