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Platform-based Utility Tokens Are Making a Comeback in 2022

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May 1, 2022

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Utility tokens are interesting additions to the broader cryptocurrency industry. As the name indicates, they provide utility to token holders rather than speculative gains. These utility assets are making a strong comeback in 2022, primarily because they gain much more usefulness.  

What Are Utility Tokens Again?

The cryptocurrency industry can be divided into many “sub-segments”. Some currencies and assets serve a specific purpose, whereas others are designed to let holders access various products, services, and benefits. In addition, utility tokens have use cases that other currencies may not. However, a utility token is still a crypto token, as it is issued on a blockchain and can be stored in a cryptocurrency wallet.

Utility tokens are unique to the ecosystem they are associated with. There are several examples of such tokens, including BAT, the native currency of the Brave browser ecosystem.

It is a utility token that lets holders tip content creators and does that job relatively well. Of course, holders can trade it on exchanges, but that is not the main purpose. 

Another thing to consider is how you cannot mine a utility token. Instead, they are pre-mined or pre-generated through a smart contract and distributed as the team sees fit. Standard methods include airdrops to existing platform users, offering them as rewards, enabling users to claim them, etc.

By giving the broader community access to these tokens, developers will try to enhance the appeal of a specific product or service. 

Tokens to Look At In 2022

Several utility tokens continue to add broader usability to their native asset. The critical use cases remain platform-specific, but there are other places where these assets gain support. 

RADAR (DappRadar)

The DapRadar platform provides users with metrics and other data regarding decentralized applications and protocols. It supports all of the major networks and various smaller blockchains to provide comprehensive oversight.

The team introduced its RADAR token not too long ago, which surprised some people. Why would anyone need a utility token for this platform when all the data is free?

RADAR is designed to let users directly contribute to the future of the DappRadar platform. Contributors, curators, and creators earn tokens by growing the World’s Dapp Store. Moreover, they can manage listings, vote on initiatives, propose recommendations, or govern product decisions.

Additionally, the RADAR token provides access to Dappadar Pro – offering enhanced insights and real-time data – and earning rewards by staking RADAR tokens in the Sushiswap liquidity pool. 

It is an exciting way of rewarding users interested in dApps and slowly guiding them into other aspects of the cryptocurrency and blockchain industry. Users can collect tokens by actively engaging and then venture into decentralized finance for staking rewards. 

VERSE (Verse)

Bringing more people into the cryptocurrency fold will primarily hinge on educational efforts. Verse aims to become that portal to the cryptoverse and reward users who participate in the Bitcoin.com ecosystem. The VERSE token is a reward for users who buy, sell, spend, swap, and educate themselves on all matters regarding cryptocurrency. That includes providing liquidity on the Verse DEX, staking the token, and earning cashbacks.

The Bitcoin.com ecosystem spans many smaller industry verticals. It has a native application for mobile and web to help users access various products and services. Its news segment brings the latest crypto and blockchain news to users, who earn VERSE for keeping up-to-date.

Advanced users can explore the permissionless decentralized exchange VerseDEX and earn trading fees through liquidity pools. Additionally, they can stake tokens to unlock additional rewards. 

To enhance the utility of VERSE and other assets, there will be a payment card later in 2022. The card works like any credit card and lets users conveniently spend crypto wherever cards are accepted online or offline. 

CRO (Cronos – Crypto.com)

The CRO utility token powers Cronos, ecosystem representing the Crypto.com initiative. With CRO, users can access various products and services, including the Crypto.com App, the Crypto.com DeFi Wallet, Crypto.com Earn, etc.

As the ecosystem grows and provides more usability, there are more benefits to holding CRO from a utility viewpoint.

Today, CRO holders can earn up to 10% cash back on purchases, stake CRO to earn network fees or acquire token rewards through the Crypto.com App, settle transaction fees, increase overall staking rewards, and access the Visa card, etc.

That Visa card comes in different tiers – depending on how much CRO one holds – and it offers up to 8% cashback on all transactions and up to 12% rewards per annum on staked CRO.

There are benefits to CRO in the decentralized finance segment too. Holders can access better interest rates and earn slightly more on fixed-term deposits, lower their annual credit interest rate, and access bonus yields when providing liquidity through the DeFi Swap solution.  

Final Thoughts

The evolution of utility tokens is significant. At first, many people saw these as speculative assets, as their utility was somewhat limited. Today, these currencies serve as an incentive to remain locked into specific ecosystems for longer periods.

Moreover, there is a growing focus on staking assets to unlock rewards, increasing holders’ incentive to focus on the utility side of things rather than monetary value. 

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PR Manager

Press release about recent ICOs, announcement from startups, new cryptocurrency launch by firms and unlike.

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