Governance Token
Token granting voting rights over a DeFi protocol's changes.
Governance tokens (UNI, MKR, AAVE, COMP) give holders voting power over protocol params: rates, listings, fee distribution, treasury. Some give revenue share (vote-escrow CRV, vlAURA). Main flaw: vote concentration with founders/VCs - decentralization often exists only on paper. Real value depends on DAO cashflow.
In plain words
A token that gives you no dividend but a vote on how the protocol runs. Like a share without dividend - voice only.
Example
MakerDAO: MKR holders voted for the 2024 Sky rebrand + 600M USD/year of revenue allocated to MKR/SKY holders via staking.
Also known as: DAO token, voting token