Utility Token
Also known as: Functional Token, Platform Token, Service Token
A type of blockchain token used to access products, services, or functions within a specific ecosystem.
A utility token is a digital asset that provides holders access to specific functionalities within a blockchain ecosystem. Unlike security tokens, utility tokens are not intended as investments but as tools for interacting with dApps, platforms, or services. They may be used for payment, governance, staking, or unlocking features. Many ICOs and Web3 startups use utility tokens to bootstrap usage and align incentives. Examples include BAT (Brave browser), GRT (The Graph), and UNI (Uniswap governance and fee reduction).