Asset-backed tokens are claims on an underlying asset, from a specific issuer. that account for Block 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 running a client protocol. Advantages: People understand staking and can make estimates of their return. Disadvantages: People don’t always stake their tokens and excessive staking could reduce transaction volume on the network. It also requires the launching of a new blockchain.... 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.