Contribution Rights 

TokensAsset-backed tokens are claims on an underlying asset, from a specific issuer. that account for Contribution RightsBlock Creation Rights This type of token is the most common type of token in most blockchain platforms that have a proof-of-stake system as token holders can become block validators with their chances roughly equal to the balance of tokens. Participating in this type of consensus process involves r... More often involve human decisions. Token holders are usually entitled to a portion of token inflation, or a portion of network transaction fees, or in some cases, both.

Advantages: The token sale distributes tokens directly to users and the ICO builds the community at the same time. It is also the least likely to fail the Howey Test for a security in the United States. 

Disadvantages: The barrier to entry is stiffer, risking less participation. Additionally, it could potentially centralize core network maintenance activities a in a small group of dedicated individuals.

(Visited 1 times, 1 visits today)
Back to glossary