# GT (Governance Token)

### What is GT?

Non-transferable ERC20 token. Address of GT equals to DAO address

{% hint style="info" %}
GT address = DAO Address. This is the same smart contract
{% endhint %}

### GT token role in DAO

Immediately at the moment of DAO creation, you need to distribute Governance tokens among DAO participants.

**All wallets with GTs have access to the DAO and can create any proposals**. The quorum determines how many tokens are needed to activate any vote in the DAO. If all issued GTs equals to 100%, then **a 51% quorum will require 51% GTs**, which are distributed among DAO members.

Governance tokens cannot be sent to another wallet by direct transfer. If there is a need to send tokens, for example, DAO member decided to leave the project, that DAO member needs to initiate a vote to transfer GT from his wallet to another.

{% hint style="info" %}
Governance tokens cannot be sent to another wallet by direct transfer.
{% endhint %}

As you can see, the GT token makes it possible to be a member of the DAO. What then is the difference between an LP token and a GT and is it necessary to create one?

{% hint style="success" %}
**Join XDAO club:**

📲 **TG Global**: [**https://t.me/xdao\_eng**](https://t.me/xdao_eng)

📲 **TG Announcement**: [**https://t.me/xdaoapp**](https://t.me/xdaoapp)

📲 **Twitter**: [**https://twitter.com/xdaoapp** ](<https://twitter.com/xdaoapp >)

📲 **YouTube**: [**https://www.youtube.com/c/xdaoapp**](< https://www.youtube.com/c/xdaoapp>)

📲 **Medium**: [**https://blog.xdao.app/**](https://blog.xdao.app/)

📲 **GitHub**:[ **https://github.com/XDAO-App**](< https://github.com/XDAO-App>)

📲 **Instagram**:[ **https://www.instagram.com/xdaoapp**](< https://www.instagram.com/xdaoapp>)

**📲 Discord**: [**https://discord.gg/xdaoapp**](https://discord.gg/xdaoapp)
{% endhint %}


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