Fungible governance tokens are digital assets that allow holders to participate in decision-making processes within a blockchain project or organization. They are termed “fungible” because each token is interchangeable with another of the same type, similar to how traditional currencies work.These tokens give holders voting rights on various issues, such as protocol upgrades, fund allocations, or other governance matters. The more tokens a person holds, the greater their influence in the decision-making process. Governance tokens encourage community engagement, as holders can voice their opinions and vote on changes that impact the project. This decentralized approach aims to create a fairer system where all stakeholders have a say.Examples of fungible governance tokens include tokens used in decentralized finance (DeFi) protocols or decentralized autonomous organizations (DAOs). These tokens not only enable governance but can often also be traded on various platforms, adding another layer of utility and value for holders.