Governance token
A token whose holders can vote on protocol parameters, treasury allocation, and code upgrades.
Examples: AAVE, MKR / SKY, COMP, CRV, UNI. Concentration is the key risk metric — if a small fraction of holders can pass any proposal, they functionally control the protocol. See Governance attack.
Related terms
- Governance attackAn exploit that uses voting power (acquired or borrowed) to pass a proposal that drains a protocol.
- Vote-escrow (ve-token)A token-locking model where governance power and emissions weight scale with lock duration.
- TimelockA delay between when a governance action is queued and when it executes, giving the community time to react or exit.