Definition ∞ Tokenized utility refers to the practical functions or services that a digital token provides within a specific blockchain ecosystem or decentralized application. These utilities can include access rights, governance participation, fee payments, or a medium of exchange for specific services. The value of a utility token is derived from its practical use within its associated network. It represents a right to use a service.
Context ∞ The concept of tokenized utility is central to discussions about the fundamental value proposition of many digital assets beyond speculative trading. Debates often focus on distinguishing genuine utility from mere speculation and ensuring compliance with securities regulations. Future regulatory clarity will likely further define what constitutes a legitimate tokenized utility, impacting project design and market perception.
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