Definition ∞ Consumptive utility describes the value derived from a digital asset or token that is expended or used up within a specific ecosystem. This utility often involves paying for services, network fees, or access to particular features within a decentralized application. The asset’s value is directly tied to its ongoing use and eventual depletion for its intended purpose. It contrasts with assets held primarily for speculative investment or governance rights.
Context ∞ The concept of consumptive utility is central to assessing the fundamental value and economic models of various blockchain protocols and digital assets. Debates frequently surround the sustainability of token economics when utility is purely consumptive, especially concerning deflationary mechanisms. Future trends indicate a greater emphasis on designing tokens with clear and sustained consumptive uses to justify their long-term viability and reduce speculative volatility.
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