@maximilionra
How do governance tokens influence DeFi projects?
Governance tokens empower holders to vote on project decisions, such as:
Protocol Upgrades: Deciding new features or improvements.
Fee Distribution: Determining how fees are allocated.
Treasury Management: Managing project funds and development.
Examples:
UNI (Uniswap): Allows voting on protocol changes.
COMP (Compound): Determines interest rates and rewards.
Governance tokens promote decentralization but can be dominated by large holders.
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