Governance in DeFi tokens allows holders to participate in protocol decisions. This includes voting on proposals, fee structures, staking rewards, or platform upgrades. Governance tokens are distributed to investors, stakers, or community members. Decentralized Autonomous Organizations (DAOs) often oversee governance processes. Transparent voting mechanisms and clear proposal systems build trust. Active governance ensures the protocol adapts to market changes and aligns with user interests. Developers must implement secure smart contracts and robust voting mechanisms to prevent manipulation while empowering the community. Governance is central to long-term sustainability and decentralization in DeFi projects.