Utility Models

Utility models define the specific functions and purposes that a token serves within a protocol, beyond simple speculation. This can include payment for services, collateral for loans, gas fees for transaction execution, or access to exclusive features.

A strong utility model is essential for creating genuine demand for a token, as it ensures that users have a functional reason to hold and use it. When utility is clearly defined and integrated into the protocol's operations, it provides a solid foundation for value accrual and helps to differentiate the asset from purely speculative tokens.