A Vault Token is a type of digital asset that represents ownership or access to a specific set of resources or privileges, typically within a decentralized finance (DeFi) platform. These tokens can serve various purposes, such as granting voting rights, earning rewards, or accessing certain financial products.Vault Tokens often emerge from liquidity pools or yield-generating strategies, allowing users to stake their assets in exchange for these tokens. Users who hold Vault Tokens can benefit from the performance of the underlying assets, often receiving dividends or rewards based on the pooled contributions.Importantly, Vault Tokens can also facilitate governance within a platform, allowing holders to propose and vote on changes. This creates a more decentralized approach to decision-making, as token holders have a direct say in the platform’s future.Overall, they play a significant role in incentivizing participation, enhancing liquidity, and promoting community engagement within various financial applications.