NEM's DeFi Glossary - #2 Governance Token

*A thread* My #NEM 's DeFi Glossary 101:
#2 - Governance token

Is actually a non-utility token, but serves as a key for the decentralization of the governance of the DeFi application.

— Brit Gaile 🐩 (@BritGaile) October 19, 2020

Holders of Governance tokens, usually through a voting process, have the power to create an impact about decisions concerning developmental changes to governance parameters, codebase, core protocol, treasury management, and product or feature roadmap.

— Brit Gaile 🐩 (@BritGaile) October 19, 2020

It also give liquidity providers a way of increasing the incentives available to them.

— Brit Gaile 🐩 (@BritGaile) October 19, 2020