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

A fee-sharing token is one that entitles the holder to a portion of the protocol's revenue, making it akin to an equity share in a traditional company. This direct link to protocol "cash flows" makes it more suitable for a standard DCF model.

A simple utility token, conversely, is primarily used to access a service or pay for network gas, and does not entitle the holder to a direct revenue share. Its value is derived indirectly from the demand for the underlying service, requiring network-based valuation models like MV=PQ rather than a direct DCF.