Definition ∞ Token mutability describes the capacity for the characteristics, supply parameters, or ownership rules of a digital token to be altered post-creation. Immutable tokens possess fixed properties and cannot be changed, while mutable tokens can undergo modifications by their issuing entity or through predefined smart contract logic. This attribute carries substantial implications for the security model, investor trust, and regulatory classification of a digital asset. The degree of mutability directly impacts the decentralization and censorship resistance of a token.
Context ∞ The ongoing discussion concerning token mutability centers on its impact on investor protection, regulatory compliance, and the core principles of decentralization. A key debate involves defining acceptable levels of mutability for different token types, particularly regarding security tokens versus utility tokens. Future developments will likely focus on establishing clearer industry standards for token design transparency, legal frameworks that address mutable digital assets, and cryptographic assurances that verify the immutability claims of specific token contracts.
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