What Is a Governance Token? A Simple Guide to Voting

Michael Taylor30 Jun, 2025Business

Naturally, if you've been learning about cryptocurrencies, you've heard of "governance token." At first, it might appear technical, but don't worry, this guide will explain everything in simple everyday terms. A governance token is a unique type of cryptocurrency that allows its owners to cast votes on choices about the operation of a blockchain project or a protocol. For example, if a blockchain project is a company, then governance tokens are shares that allow you to have a say in how the business will run. Yet, holders of governance tokens typically use online platforms that use blockchain technology to cast their votes rather than in a boardroom.