When asked: What exactly can governance tokens be used for?
I usually answer this way: Holders of governance tokens can vote on proposals such as protocol parameters, treasury spending, and contract upgrades. Typically, one token counts as one vote. Voting power is calculated based on the number of tokens held, and when the project team, early investors, and whales hold a larger share, voting outcomes are often swayed by a small number of addresses.
$UNI 6.989 (-2.63%)
If you find this useful, save it and come back to it later.
I usually answer this way: Holders of governance tokens can vote on proposals such as protocol parameters, treasury spending, and contract upgrades. Typically, one token counts as one vote. Voting power is calculated based on the number of tokens held, and when the project team, early investors, and whales hold a larger share, voting outcomes are often swayed by a small number of addresses.
$UNI 6.989 (-2.63%)
If you find this useful, save it and come back to it later.
