Intermediate Blockchain & Web3
Q65 / 100

What is a "governance token"?

Correct! Well done.

Incorrect.

The correct answer is A) A token that grants holders voting rights on proposals affecting a protocol's future, such as parameter changes or fund allocation

A

Correct Answer

A token that grants holders voting rights on proposals affecting a protocol's future, such as parameter changes or fund allocation

Explanation

Governance tokens (e.g., in DAOs) allow holders to vote on proposals, decentralizing decision-making over a protocol's parameters, treasury, or upgrades.

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