Defining Defi terms about Governance Token

Governance Token

Governance Token is a token which besides having value and function like cryptocurrency in general (can be trade, exchange, staking, farming, delegate etc.) also has a very powerful value and function.

Governance Token holders can vote directly on proposals that affect the future of the cryptocurrency platform, so Governance Token is very powerful because it allows people to control the operation of the Defi protocol, and therefore they have it's value.

We can use the governance token to vote on proposals that impact mission on creation of future Governance token builds. Like for example in a technical change we can update the way of pay interest on Defi Loan, apart from technical changes we can also make substantial changes on underlying platform itself.

Governance Token is a tokens that can control the future of the platform.