utility token

A utility token is a type of token that is used to access a particular product or service within a blockchain-based ecosystem. Unlike security tokens, which represent ownership in a company or asset, utility tokens do not provide any ownership or investment stake in a project.

Utility tokens work to provide users with access to specific functionalities or services within a decentralized network. There are different types of utility tokens, and they are often used to incentivize users to participate in the network by offering rewards or discounts for using the token to access the network's services. The use of a utility token is limited to the particular ecosystem that it is designed for. For example, one day, Uber could have its own utility token which people would use to pay for rides on the Uber network. Utility tokens are not designed as investment vehicles.