web3/concepts/governance-token.md

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# Governance Token
A [bearer instrument](bearer-instrument.md) token which grants holders of the token the capacity to "vote" in a [smart-contracts](smart-contracts.md) implementation of a [DAO](dao.md) or other [DeFi](defi.md) protocol.
Governance tokens are imitations of voting shares [stock](stock.md) as seen in regulated [security](security.md).