# Governance and Voting

Token holders play a crucial role in governing the Dextra protocol. By locking their DEXTR tokens, participants receive goDEX tokens, which serve as voting tokens within the DAO. These voting tokens allow holders to:

* **Participate in Governance Decisions:** Token holders can vote on important governance proposals, including protocol changes, updates, and strategic partnerships.
* **Manage Token Inflation:** The community has the power to decide on the distribution of DEXTR token inflation, ensuring that inflation mechanisms align with the interests of participants.
* **Increase APY:** Voting rights can be used to influence decisions that impact the Annual Percentage Yield (APY) of the protocol, optimizing returns for all participants.
* **Engage in Project Development:** Active participation in voting allows token holders to contribute to the direction and development of the project, ensuring its evolution aligns with the community’s vision.