Definition ∞ Token claims refer to the rights or entitlements associated with holding a specific digital token, which can include governance participation, revenue sharing, access to services, or a share in an underlying asset. These claims are often defined within the token’s smart contract or associated legal documentation. They represent the utility or value proposition of the token.
Context ∞ The nature of token claims is central to regulatory classification debates, particularly concerning whether a token represents a security. Regulators examine the claims attached to a token to determine if it conveys ownership rights or an expectation of profit from others’ efforts. Clear delineation of these claims is vital for legal compliance and investor understanding in the evolving digital asset market.
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