What is a Utility Token and what benefits can you get from it?
Utility tokens are the tokens inside the company’s ecosystem. Features of utility token are mainly about functionality, but they usually can be used only inside one project’s ecosystem, providing a specific utility benefit (or a number of such). They can be earned and used in entirely different ways depending on the terms of issuing. You can think about a utility token in terms of a casino chip, a ticket from a table game, or a voucher.
Utility tokens don’t reflect a share of a company’s stock (like the security token does) but are a necessary tool or mechanism for using the application in question. Utility tokens are also the most popular type of tokens among blockchain companies. Most cryptocurrency exchanges allow users to pay fees in their native utility tokens.
Utility tokens can function as a bonus or reward mechanism in decentralized systems. This mechanism enables indirect earning for the author or creator. For instance, if you like somebody’s work, you can give them an upvote, so the system rewards this creator with a certain number of tokens.
Utility tokens can serve as a loyalty point. Traditional companies tokenize their loyalty plans so that loyalty points can be purchased and traded on blockchain markets. These tokens are widely used in decentralized companies as compensation and motivation systems. For instance, a social channel where people post content can enable the users to apply utility tokens to reward the creators for their contributions to this platform. It will also allow the website members to redeem the tokens for specific bonuses and rewards on your site.
Stobox ecosystem has its own utility token, called STBU. There are multiple applications for STBU in Stobox’s ecosystem: for instance, you can buy STBX with them, pay for gas on DS Swap, and get holder bonuses (like discounted commission).
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What is STBU, and what benefits can you get from it?
STBU is Stobox’s native token. First and foremost, like a classic utility token, it grants additional benefits when using multiple Stobox products and services. If you hold it, you can:
- Pay commissions on Stobox DS Swap
- Buy Stobox services and products
- Open a functionality of creating a liquidity pool in DS Swap
- Participate in the company engagement activities
- Receive additional benefits like sharedrops
It is built on the ERC-20 standard of the Ethereum blockchain and has clones in Ethereum-compatible chains, such as BSC. STBU is traded on Stobox Exchange, Gate.io, Uniswap, and Probit.