Utility and Value Accrual

A token needs a reason to be held beyond speculation. Utility and value accrual connect protocol success to token demand — fee sharing, staking requirements, or governance over cash flows.

Tokens locked for staking, collateral, or access create demand while utility exists. Gaming tokens spent on items and governance tokens required to propose — both reduce circulating supply during active use.

Distinguish tokens backed by protocol revenue from tokens backed by narrative alone. Revenue models survive bear markets better — but regulatory treatment of revenue-sharing tokens varies by jurisdiction.