🧠 Topic: What is a token use case (utility), why is the token needed at all, and how to distinguish "useless junk" from a real asset
💡 The use case of the token (#utility) — is the real application of the token in the project's ecosystem.
If the token has no meaning → it’s just a "chip" that will be dumped sooner or later.
🔍 Why is the token even needed?
📌 Main roles of the token:
🧾 Payment — for fees, services (example: ETH, BNB)
📊 Governance — voting in DAO (example: UNI, AAVE)
🧑🌾 Farming/staking — rewards for activity (example: SUSHI, GMX)
🏛 Participation in launchpads — access to IDO/INO (example: DAO, BSW)
🔒 Collateral and backing — in lending or DEX (example: DAI, CRV)
🎮 Gaming / NFT — in-game currency or access (example: APE, GALA)
🚨 No real application?
→ Token is not needed → price = pure speculation
→ Sooner or later, liquidity will go away
📉 Signs of a "junk" token:
❌ No utility (not used anywhere)
❌ Only "stake for APY"
❌ No demand within the ecosystem
❌ All functions can be performed without the token
❌ Only about "price will rise" — without a product
💎 Signs of strong utility:
✅ Token is required to use the product
✅ The more users → the more demand
✅ Used as payment / fee
✅ Mandatory for participation (#DAO #IDO functions)
✅ Burned or locked (deflation)
📘 Example:
$ETH → needed for gas payments, collateral,
$BNB → fees, launchpad, burning
$AAVE → voting, discounts, security
XYZ → only farming + huge unlock → 🚩
📌 Where to see the utility:
🔹 Whitepaper / Docs
🔹 Tokenomics section
🔹 Product — try it yourself: is the token needed for actions?
🔹 If you remove the token — does the project work? → Bad
🧠 Conclusion:
#utility — this is the basis of the token's value.
If the project has no use case — sooner or later you will be left with a "coin" without demand.
Buy the asset, not the wrapper.
📖 In the next issue, I will tell you: How token burning works, why it is done, and how it can support the price (but not always).
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