Governance tokens allow holders to participate in decision-making within a blockchain project. These tokens enable voting on proposals such as protocol upgrades, changes to fees, and fund allocation. The more tokens a holder has, the greater their influence. The value of a governance token is often tied to the success and adoption of the project, as it grants holders the ability to shape its future. A well-designed governance system can increase investor confidence, while a poorly managed one can diminish value. In essence, governance tokens give users a stake in the project's direction, influencing its growth and value.