Tokenomics & On-chain

What is a utility token?

A utility token is a cryptocurrency that provides access to a specific product or service within a network, rather than primarily representing ownership or voting rights. Holders spend or hold it to use a function, such as paying transaction fees, accessing storage, or unlocking features. For example, a network might require its token to pay for computation, so demand ties to actual usage. Utility tokens derive value from how much the underlying service is used, which makes adoption a central question. Reading what the token is genuinely required for clarifies whether its utility is real or nominal.