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Glossary Term

Utility Token

A utility token is a type of blockchain-based digital asset designed to provide access, functionality, or special privileges within a specific decentralized application or platform—often powering key operations, rewards, and engagement within Solana’s dApps, DeFi protocols, and NFT projects.

Beginner
General
Crypto Terminology

Utility Token: what is it?

Examples

  • 1

    BONK: Meme/utility token rewarding community engagement and activity.

  • 2

    JUP: Jupiter’s utility token, enabling trading discounts and ecosystem features.

  • 3

    Stepn GST/GMT: In-game currencies earned and spent for upgrades or rewards.

  • 4

    MET: Meteora’s token, unlocking better DeFi yields and exclusive platform access.

Common Use Cases

Offsetting or discounting trading fees on a decentralized exchange.
Gaining in-game benefits—power-ups, new levels, or NFTs.
Enabling access to gated content, whitelist mints, or “premium” protocol functionality.
Rewarding community moderation, bug reporting, or social media engagement.

Pro Tips

💡

Verify the smart contract and distribution methods before acquiring a utility token.

💡

Review the token’s supply, burn events, and emissions for insights into long-term value.

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Use utility tokens in their intended dApps to maximize perks and avoid scams or rug pulls.

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Monitor new launches—utility tokens are frequently distributed as airdrops for active users.

Frequently Asked Questions

Related Terms

Airdrop
Altcoin
KYC
Benchmark
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