Definition of utility token
A utility token is a crypto token that serves a certain use case within a specific ecosystem. These tokens allow users to perform some action on a network. An NFT can also offer utility.
Utility token used in a sentence
‘’The token of this project can be used in a lot of ways, it has great utility!’’
‘’Does BTC actually have any utility or is it just bought and sold for value speculation?’’
‘’The utility of this token is great! It can be used for staking, lending, unique purchases.’’
History/information/research of Utility token
A utility token is unique to its ecosystem. For example the onXRP (OXP) token only serves a purpose within the onXRP ecosystem, where people can do various things with it.
Utility tokens are not mineable cryptocurrencies. They are usually pre-mined, being created all at once and distributed in a manner, chosen by the team behind the project.