Overview

Utility tokens are designed to be used within a specific blockchain-based ecosystem. They are not intended as primary investments but rather as 'coupons' or 'keys' that grant access to features, services, or discounts provided by the issuing project.

Characteristics

  • Access-Driven: Their primary value comes from the utility they provide within a dApp or platform.
  • Non-Equity: They do not represent ownership or a stake in the company.
  • Incentivization: Often used to reward users for participating in the network.

Example

Filecoin (FIL) is a utility token used to pay for decentralized storage services on the Filecoin network.

Related Terms