Utility tokens

Hugo Benedetti, Christian Caceres, Luis Álvaro Abarzúa

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

1 Scopus citations


Utility tokens are digital currencies that serve as the only accepted means of payment for services and products provided through a blockchain-based platform. They finance the development of their product or service, reward and incentivize early adopters and network promoters, align economic incentives between supply, demand, and the marketplace, and enhance network effects among all participants. Their tokenomic design consists of the rules and regulations governing a token's issuance, distribution, allocation, and potential destruction. The chapter describes utility tokens, compares them with other types of cryptoassets, and discusses their value creation process and role in network economics. It also reviews common tokenomic designs, discusses different regulatory approaches, and provides examples of current utility token applications in decentralized applications such as decentralized finance and virtual reality platforms (metaverses).

Original languageEnglish
Title of host publicationThe Emerald Handbook on Cryptoassets
Subtitle of host publicationInvestment Opportunities and Challenges
PublisherEmerald Group Publishing Ltd.
Number of pages14
ISBN (Electronic)9781804553206
ISBN (Print)9781804553213
StatePublished - 16 Jan 2023

Bibliographical note

Publisher Copyright:
© 2023 by Emerald Publishing Limited. All rights reserved.


  • Cryptoassets
  • Decentralized finance
  • Metaverse
  • Network effects
  • Tokenomics
  • Utility tokens


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