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Utility Token

A utility token is a digital token that represents access or usage rights within the DAO's platform or system.

Unlike security tokens, which signify ownership or equity in an enterprise, utility tokens are more about access or utility within a specific ecosystem.

Utility Tokens as form of Payment

The token might be used as a currency within the DAO's ecosystem. Members might use it to buy services, pay for goods, or trade amongst each other.

Utility Tokens to Distribute Rewards

DAOs often reward contributors or members for their work, commitment, or other activities. Utility tokens can be a form of that reward, either granted outright or earned through specific actions.

Utility Tokens as Collateral

In our ecosystem, members need to lock up (or "stake") tokens as collateral to participate in certain activities, ensuring they have a vested interest in the outcome.

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