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Web3 & DApp Development Fundamentals · Lesson

Governance Tokens

Voting power.

What Is a Governance Token?

A governance token is an ERC-20 token that grants its holder the right to participate in a DAO's decisions.

It converts ownership into voting power, aligning influence with stake in the organization.

Voting Power

In the simplest model, one token equals one vote. A holder of 1,000 tokens has ten times the weight of a holder of 100.

This ties decision-making to economic exposure to the protocol.

votingPower(address) = token.balanceOf(address)
// 1 token = 1 vote

All lessons in this course

  1. What Is a DAO
  2. Governance Tokens
  3. Proposals and Voting
  4. Timelocks and Execution
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