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How Does “Protocol Sink” Utility Contribute to Token Demand?

Protocol sink utility refers to mechanisms that require users to acquire and lock or spend the native token to access core network functions or services. Examples include paying transaction fees, collateralizing a loan, or staking for governance.

By creating necessary and persistent demand for the token, the protocol effectively "sinks" the supply, which contributes positively to its long-term intrinsic value.

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