Definition ∞ Non-Fiat Tokens are digital assets that do not derive their value directly from or are not pegged to traditional government-issued fiat currencies. These tokens can represent various forms of value, including utility within a decentralized application, ownership in a real-world asset, or a share in a decentralized autonomous organization. Their value is determined by market supply and demand, utility, or the underlying assets they represent. They exist independently of central bank control.
Context ∞ Discussions around Non-Fiat Tokens often concern their role in decentralized finance DeFi and the broader digital economy. News reports analyze their price volatility, utility in various blockchain protocols, and regulatory classification. Understanding the distinction between fiat-backed stablecoins and non-fiat tokens is crucial for assessing market risk and regulatory implications. The continued innovation in token design and functionality expands the applications and economic significance of these digital assets.
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