What Is the Difference between "Utility" and "Value Accrual" for a Token? ▴ Learn

What Is the Difference between “Utility” and “Value Accrual” for a Token?

Utility refers to the functional use of a token within its native protocol (e.g. governance, paying fees, staking). Value accrual refers to the mechanism by which the token captures a portion of the economic value generated by the protocol (e.g. fee sharing, burn mechanisms).

A token needs strong utility to generate protocol value, and effective value accrual to translate that value into intrinsic worth for the token holder.

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