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🪙 Governance Tokens: Voting Power

Understand how tokens grant treasury decision rights

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🪙 Governance Tokens Explained

Governance tokens represent voting power in a DAO. Token holders can create proposals, vote on decisions, and influence how the treasury is managed. More tokens = more influence.

⚖️ Voting Power Calculator

Calculate your voting power and see if you can meet quorum requirements alone.

1,000
100,000
10%

Minimum participation needed to pass proposals

Your Voting Power
1.000%
Significant influence
Tokens for Quorum
10,000
10% of total supply
Quorum Status
✗ Need Others
Community vote
💡 Note: You currently own 1.00% of voting power. You have meaningful voting power.

How Governance Tokens Work

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1 Token = 1 Vote

Most DAOs use token-weighted voting where each token represents one vote. If you hold 1,000 tokens out of 100,000 supply, you control 1% of voting power.

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Voting Participation

Token holders vote on-chain by signing transactions. Some DAOs require delegation (assign voting power to representatives) or snapshot voting (off-chain but verified).

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Voting Periods & Quorum

Proposals have fixed voting windows (3-7 days). Quorum ensures minimum participation - typically 4-15% of total supply must vote for a proposal to be valid.

📊 Token Distribution Visualizer

Typical DAO token distribution. Notice how different stakeholders receive different allocations to balance power.

Team & Advisors20%
Community Treasury40%
Public Sale25%
Investors15%

🏢 Team & Advisors (20%)

Core contributors and advisors. Often vested over 2-4 years to align long-term incentives.

🏛️ Community Treasury (40%)

Largest allocation for grants, rewards, ecosystem growth, and future contributors.

🌐 Public Sale (25%)

Sold to community members during ICO, IDO, or public launch to distribute ownership widely.

💼 Investors (15%)

Early-stage VCs and angel investors. Typically vested to prevent immediate selling.

⚠️ Centralization Risk: If team + investors control >51%, they can pass proposals without community consent. Healthy DAOs keep this below 30-40%.

✅ Token Voting Benefits

  • •Skin in the Game: Holders are financially invested
  • •Liquid Democracy: Can sell tokens if unhappy with direction
  • •Permissionless: Anyone can buy tokens and participate
  • •Transparent: All votes recorded on blockchain

⚠️ Potential Issues

  • •Plutocracy: Wealthy holders dominate decisions
  • •Low Turnout: Only 5-10% of holders typically vote
  • •Vote Buying: Attackers can borrow tokens to sway votes
  • •Short-term Focus: Holders may prioritize quick profits