# What is Governance Token

<figure><img src="/files/3YsmalP5Nij8UsUdwqcS" alt=""><figcaption></figcaption></figure>

As the [#defi](https://twitter.com/hashtag/defi?src=hashtag_click) industry grows and gets more complex, the need arises to differentiate between concepts. This article sheds light on the peculiarities of governance tokens against other tokens found in the industry.

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