Governance Token vs Utility Token

Quick comparison to help you distinguish these two crypto terms.

Governance Token
intermediate
fundamentals

A governance token is a cryptocurrency that grants holders voting rights over a decentralized protocol's decisions, enabling community-driven control without centralized management.

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Utility Token
beginner
fundamentals

A utility token is a cryptocurrency that provides holders with specific access, discounts, or functional rights within a particular platform or blockchain-based application.

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