Utility Staking

Definition ∞ Utility staking involves locking up tokens to gain access to specific features, services, or governance rights within a decentralized application or protocol. Unlike traditional staking for network security, utility staking grants functional benefits directly related to the platform’s operation. The staked tokens act as a prerequisite for using certain aspects of the ecosystem. This mechanism aligns user incentives with platform usage.
Context ∞ News reports frequently highlight projects that implement utility staking models, detailing the benefits and requirements for participants. Discussions often center on how these models drive token demand and foster active community involvement. The value derived from utility staking is a key factor for users deciding to commit their assets to a particular protocol.