@shuffle8

Governance tokens allow holders to participate in the decision-making process of blockchain projects. By owning these tokens, users can vote on key proposals such as protocol upgrades, changes to fee structures, or how project funds are allocated. This system aims to decentralize control by giving the community a direct role in the project's evolution, rather than relying solely on the developers or a centralized authority. However, the voting power is often proportional to the number of tokens a user holds, which can lead to centralization if a few large holders dominate decisions. Despite this, governance tokens are a step toward more decentralized and community-driven decision-making in blockchain ecosystems.

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