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Token Taxonomy Framework

Definition

The Token Taxonomy Framework is a structured methodology for classifying digital tokens based on their functional characteristics and legal implications. This framework provides a consistent language and set of criteria to differentiate between various types of tokens, such as utility tokens, security tokens, and payment tokens. Its purpose is to assist developers, regulators, and market participants in understanding the nature of a token and applying appropriate regulatory treatment. The framework aids in navigating the complex legal landscape of digital assets.