# Can a Token Be Both a Fee-Sharing and a Utility Token Simultaneously? ▴ Learn

**Published:** 2025-11-16
**Categories:** Learn

---

## Can a Token Be Both a Fee-Sharing and a Utility Token Simultaneously?

Yes, a token can be designed to be both. For instance, a token might be required to pay for transaction fees (utility) while also granting the holder a right to a portion of the protocol's surplus revenue (fee-sharing).

This hybrid design aims to capture value from both consumption demand and investment demand. However, the fee-sharing aspect significantly increases the regulatory risk of being classified as a security, requiring careful structuring.

How Does a Layer-Two Scaling Solution Impact the Transaction Fee Revenue of Layer-One Miners?

What Is a ‘MEV-Share’ Protocol and How Does It Redistribute MEV?

Are There Hybrid Legal Agreements That Combine Smart Contracts with Traditional Law?

What Is the Difference between a Fee-Sharing Token and a Simple Utility Token in a DCF Context?

## Discover More

- 
### [How Do “Burn Mechanisms” Affect a Utility Token’s Supply and Value?](https://crypto.greeks.live/learn/how-do-burn-mechanisms-affect-a-utility-tokens-supply-and-value/)
![The metallic housing, featuring recessed screw points, encapsulates a convex, teal-tinted optical element, symbolizing the focused scrutiny required for complex financial instruments. The surrounding gray and green planar surfaces suggest bifurcated market conditions or segmented ledger visibility, perhaps representing layered risk management in decentralized exchange mechanisms. This visual motif strongly evokes the critical role of oracle transparency in smart contract execution and the precision needed for Black Scholes modeling applied to exotic cryptocurrency options, specifically referencing volatility surface calibration and strike price evaluation within immutable transaction finality. Navigating DeFi requires this high-fidelity perception to manage perpetual futures exposure and arbitrage opportunities across siloed liquidity pools.](https://crypto.greeks.live/wp-content/uploads/2025/10/Precision-Optical-Assembly-Modeling-Decentralized-Finance-Protocol-Lens-Functionality-Convergence.jpg)

Permanently removing tokens from circulation to increase scarcity, which can lead to value appreciation if demand holds.

- 
### [Why Do Both Call and Put Options Lose Value When Volatility Drops?](https://crypto.greeks.live/learn/why-do-both-call-and-put-options-lose-value-when-volatility-drops/)
![Two orbs a matte white one and a translucent cyan sphere suggesting underlying asset states are linked by crossed metallic struts and a flowing ribbon of semi-opaque material illustrating derivative contract mechanics. This abstract structure evokes the delicate interplay of perpetual swap funding rates and strike price differentiation across a multi-layered decentralized exchange order book. The visual dynamic symbolizes the continuous price discovery mechanism inherent in liquid staking derivatives and the complex hedging strategies employed against exogenous market shocks. The smooth connectivity represents resilient interoperability between disparate Layer Two scaling solutions. Key terms include implied volatility exposure settlement protocol and non directional arbitrage opportunities.](https://crypto.greeks.live/wp-content/uploads/2025/10/Interconnected-Spheres-Representing-Stochastic-Volatility-Surface-and-Digital-Asset-Flow-Mechanism.jpg)

Less swing means less chance to win, so both bets (calls and puts) become cheaper.

- 
### [What Is the Difference between a Utility Token and a Governance Token?](https://crypto.greeks.live/learn/what-is-the-difference-between-a-utility-token-and-a-governance-token/)
![The close-up reveals layered metallic and dark composite components suggesting intricate internal machinery reminiscent of a complex storage drive or actuation system, focusing on precision engineering. This visual metaphor represents the immutable ledger architecture underpinning DeFi protocols where governance tokens facilitate critical decision-making analogous to smart contract execution variables. The alignment mechanism situated centrally suggests dynamic calibration necessary for accurate oracle price feeds, essential for calculating options premiums and managing collateralization ratios in leveraged yield farming strategies. Such electromechanical precision mirrors the required robustness for decentralized finance infrastructure, ensuring settlement finality and mitigating slippage across complex swap manifolds. Keywords include: Deterministic State Transition Immutable Ledger Consensus Mechanism Oracle Network Price Discovery Automated Market Maker Liquidation Thresholds Collateralized Debt Positions Impermanent Loss Hedging Volatility Skew Analysis.](https://crypto.greeks.live/wp-content/uploads/2025/10/Mechanistic-Assembly-Depicting-Latent-Space-Mapping-for-Decentralized-Autonomous-Organization-Governance-Oracles.jpg)

Utility → Service access. Governance → Protocol control. Hybrid checkmark.

- 
### [How Do Non-Fungible Tokens (NFTs) Fit into the Utility versus Security Token Debate?](https://crypto.greeks.live/learn/how-do-non-fungible-tokens-nfts-fit-into-the-utility-versus-security-token-debate/)
![This close-up reveals a highly polished, bifurcated cylindrical structure bisected by a sharp geometric line, transitioning from an ivory beige to a vibrant cyanoid hue, suggesting segmented ledger states or diverse collateral pools within decentralized finance. At the nexus lies a dark, recessed aperture containing an intricately entwined network of fine metallic filaments, analogous to the complex internal mechanics of a high-frequency trading engine or the hashed structure underpinning a permissionless smart contract execution environment. The structure evokes the conceptual encapsulation of on-chain derivatives like perpetual futures or synthetic asset management, where underlying tangible or digital value is abstracted into a transparent yet robust financial instrument, managing systemic risk through deterministic block finality and maintaining optimal liquidity provisioning across asynchronous order books. The sleek surfaces reflect sharp specular highlights implying immutable data throughput.](https://crypto.greeks.live/wp-content/uploads/2025/10/Tokenized-Asset-Securitization-Architecture-with-Encapsulated-Settlement-Mechanism-for-DeFi-Protocols.jpg)

NFTs are usually collectibles, but they become securities if sold as an investment with profit expectation from promoter efforts.

- 
### [What Is a Governance Token and How Does It Differ from a Utility Token?](https://crypto.greeks.live/learn/what-is-a-governance-token-and-how-does-it-differ-from-a-utility-token/)
![The pale sage housing frames a recessed aperture revealing a metallic cylindrical input mechanism suggestive of biometric authentication or cold storage key engagement. This visual abstraction models the secure isolation required for managing decentralized finance collateral and navigating complex multi-signature escrow agreements. The stark contrast against the black background evokes the air-gapped security protocol fundamental to robust self-custody solutions and hardware wallet integrity verification. Precision engineering cues hint at minimizing systemic risk in high-leverage perpetual futures contract execution where timing latency dictates margin call avoidance or liquidation thresholds. The central element symbolizes the crucial gateway protecting digital asset sovereignty against adversarial on-chain attacks and unauthorized access to DeFi liquidity pools or tokenized real-world asset mandates.](https://crypto.greeks.live/wp-content/uploads/2025/10/Minimalist-Digital-Asset-Custody-Mechanism-Depicting-Secure-Private-Key-Access-Protocol-Initiation.jpg)

A governance token provides voting rights and control over a protocol, while a utility token provides access to a network's services or functions.

- 
### [What Is the Difference between a Fee Waiver and a Fee Reimbursement for an ETF?](https://crypto.greeks.live/learn/what-is-the-difference-between-a-fee-waiver-and-a-fee-reimbursement-for-an-etf/)
![This abstract composition features two mirrored, light-blue mechanical structures resembling stylized foot orthotics or articulated suspension components, interwoven with darker metallic elements suggesting complex internal gearing or micro-actuators. Surrounding these central forms are overlapping, sharply angled blades or fins in shades of pale mint green and dark onyx, arranged symmetrically against a deep indigo void. This visual synergy embodies the intricate design of automated market maker bonding curves and the precision required for delta-neutral strategies utilizing perpetual futures contracts for collateral management. The structure implies robust execution mechanics underpinning high-frequency arbitrage across disparate DeFi liquidity pools, reflecting systemic stability mechanisms against volatility spikes common in frontier decentralized exchanges. These integrated mechanical and aerodynamic forms symbolize optimal pathfinding for minimizing slippage during large scale block trades and executing complex options payoff structures.](https://crypto.greeks.live/wp-content/uploads/2025/10/Symmetrical-Biomorphic-Mechanism-Representing-Algorithmic-Hedging-Strategies-in-Decentralized-Finance-Protocols.jpg)

A fee waiver is a prospective reduction; a fee reimbursement is a retrospective return of collected fees.

- 
### [Explain the Concept of “At-the-Money” (ATM) for Both Call and Put Options](https://crypto.greeks.live/learn/explain-the-concept-of-at-the-money-atm-for-both-call-and-put-options/)
![Two highly polished cyanoidal spherical volumes symmetrically compress a thin metallic sliver suggesting a constrained exchange mechanism. This visual metaphor encapsulates the precarious equilibrium of a leveraged synthetic asset where underlying asset volatility dictates pricing dynamics. The sliver represents a constrained notional principal caught between opposing liquidity provisions mimicking margin calls or collateral adjustments in perpetual futures contracts. High sheen reflections denote market transparency versus opaque counterparty risk inherent in decentralized finance settlement layers. This scenario models the challenge of maintaining delta neutrality when managing options delta hedging across volatile crypto asset pairs, emphasizing strike price precision and rapid liquidation thresholds observed in DeFi option vaults.](https://crypto.greeks.live/wp-content/uploads/2025/10/Precise-Bifurcation-of-Synthetic-Asset-Obligation-Between-Bouncing-Liquidity-Pools.jpg)

Strike price is equal to or very near the asset's current market price; no intrinsic value.

- 
### [How Did Ethereum’s EIP-1559 Change the Transaction Fee Mechanism?](https://crypto.greeks.live/learn/how-did-ethereums-eip-1559-change-the-transaction-fee-mechanism/)
![This schematic close-up reveals stacked, alternating strata of black polymeric and pale beige elastomeric rings terminating in two protruding metallic probes, one capped with a black sphere and the other with a teal terminus, against a stark black void. This configuration visually models the multi-layered governance architecture of a bespoke Decentralized Finance DeFi Automated Market Maker AMM liquidity provisioning system. The concentric layers suggest depth in smart contract staking tiers, reflecting complex collateralization ratios and varying levels of vesting schedules within leveraged perpetual futures mechanisms. The exposed probes evoke interaction points, perhaps representing oracle data feeds or active margin calls on a high-frequency algorithmic trading engine utilizing on-chain settlement layer infrastructure for rapid derivative execution and immutable audit trails across a permissionless ledger.](https://crypto.greeks.live/wp-content/uploads/2025/10/Layered-Actuator-Mechanism-Representing-Decentralized-Exchange-Liquidity-Pool-Staking-Protocol-Interface.jpg)

Introduced Base Fee (burned) and Priority Fee (tip). Made fees more predictable and less volatile. Algorithmically adjusted.

- 
### [How Do Different Fee Tiers Accommodate Various Asset Classes (E.g. Stablecoins Vs. Volatile Assets)?](https://crypto.greeks.live/learn/how-do-different-fee-tiers-accommodate-various-asset-classes-e-g-stablecoins-vs-volatile-assets/)
![This abstract visualization suggests the dynamic separation of underlying assets within a structured product ecosystem, echoing concepts like collateralized debt obligations CDOs or structured synthetic positions. The dual, opposing, semi-circular translucent panes represent potential option contract payoffs, possibly illustrating the asymmetry inherent in non-linear payoff profiles, such as deep out-of-the-money OTM options or exotic derivatives structures. The central beige forms imply locked or sequestered principal, perhaps symbolizing escrowed collateral or reserved liquidity pool constituents. This visual dichotomy mirrors market microstructure fragmentation, highlighting potential counterparty risk exposure during liquidation events or the divergence in implied volatility skew across strike prices in decentralized finance DeFi options protocols. It evokes the tension between settlement mechanisms and perpetual futures hedging strategies.](https://crypto.greeks.live/wp-content/uploads/2025/10/Asymmetric-Bifurcation-of-Collateralized-Debt-Position-Instruments-Against-Black-Background.jpg)

Lower fees for low-risk stablecoins and higher fees for high-risk, volatile pairs to match IL exposure.

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