🧑‍🤝‍🧑Governance (DAO)

Governance tokens represent the ownership of a decentralized protocol. They grant token holders certain rights that affect the direction of the protocol. This can include the development of new products or features, budget spending, integration or partnerships, and more. In general, the exercise of this influence can take two forms. First, governance tokens can propose changes through a formal proposal process. If a proposal meets certain criteria and is put to a vote, they can use their tokens to vote on the proposed changes. The specific mechanisms and processes by which these rights are exercised vary from protocol to protocol.