Bitcoin
Bitcoin
BTC
$103,516.00
1d: -0.48%
7d: -0.20%
$103,516.00
-0.48%
Ethereum
Ethereum
ETH
$2,501.07
1d: -3.82%
7d: +5.98%
$2,501.07
-3.82%
Polkadot
Polkadot
DOT
$4.74
1d: -2.95%
7d: -6.75%
$4.74
-2.95%
Solana
Solana
SOL
$169.45
1d: -1.63%
7d: -1.35%
$169.45
-1.63%
XRP
XRP
XRP
$2.39
1d: -1.33%
7d: +0.02%
$2.39
-1.33%
Shiba Inu
Shiba Inu
SHIB
$0.00001437
1d: -4.76%
7d: -9.17%
$0.00001437
-4.76%

Utility Token

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Table of contents
    1. 0.2. How Utility Tokens Work
    2. 0.4. Why Utility Tokens Matter

A Utility Token is a type of cryptocurrency that grants users access to a product, service, or feature within a specific blockchain ecosystem.

How Utility Tokens Work

Unlike security tokens, utility tokens are not meant to represent ownership or investment in a project. Instead, they function as a form of digital credit used within a platform. For example, a utility token might be required to pay for transaction fees, unlock premium features, or vote on governance proposals within a decentralized app (dApp).

Why Utility Tokens Matter

Utility tokens help power decentralized ecosystems by aligning user incentives and enabling platform functionality. They encourage active participation, can fuel demand, and serve as a key mechanism in token economies. While they aren’t intended as investments, their value often fluctuates based on platform usage and demand.