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 Token
Easily define your Utility token inside the DAO settings.
Access Rights
The token can be used to grant its holders access to a specific service or feature within the DAO. For example, only token holders might be allowed to use a certain software, access content, or participate in certain activities.
Work Validation
In DAOs that operate on Proof of Stake (PoS) or other consensus algorithms, utility tokens can be staked or committed as a show of good faith and to validate work or operations within the network.
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.
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.
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.
Related Features
Take the first steps to Create a DAO or join a DAO within Hypha Network.
