Definition ∞ Economic rights pertain to the entitlements an individual or entity holds regarding the financial benefits or value derived from an asset or enterprise. These rights can include claims to profits, dividends, interest payments, or the appreciation in asset value. In the context of digital assets, these are often programmed into tokens or smart contracts. They determine how value accrues to token holders.
Context ∞ The precise definition and allocation of economic rights are central to the regulatory classification of many digital assets. Regulators often assess whether a token grants economic rights akin to traditional securities. Debates frequently involve how to distinguish utility tokens from investment contracts based on the nature of their associated economic entitlements. Future legal frameworks will likely provide clearer guidelines on how economic rights in digital assets are defined and protected.
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