Classifications of tokens

Classifications of tokens in the legal field are based NOT on technical characteristics, but on the PURPOSE of the token usage. Thus, tokens are divided into two large categories.

Security token is a digital analogue of securities that certifies ownership and gives owner the right to achieve his investment interests. In fact, these are digital assets that are subject to federal securities laws, and thay represent something between tokens and traditional financial products.

Also, security tokens can be described as a “programmable property right”, which can apply to any asset — public or private capital, monetary obligation, real estate, and so on. These rights are written in the code, and the tokens themselves are traded on exchanges.

Utility tokens are service tokens that give access to a company’s services or products. The defining characteristic of these tokens is that they are not intended for investment.

Utility tokens are internal tokens of the protocol itself which give their owner unique advantages in using the App or network.

For example, the BNB token reduces trading fees on Binance. The BTT token gives you access to the advanced features of the Bitteam p2p exchange and reduces the exchange fee.

The DEL token can also be classified as a Utility if the PURPOSE of its use is to make quick transfers, create custom coins, delegate to nodes and participate in the issue.

Decimalchain Tokens

Actions within the network, such as selling, buying, DPOS, issuing tokens, occur through the main DEL token. It can also be classified as a Native token.

Custom tokens issued within the Decimal network can belong to any category. It all depends on the company that issued the token, and the conditions that it provides to its users and investors.

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Decimal helps communities to issue and manage blockchain assets.

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Decimal helps communities to issue and manage blockchain assets.

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