Utility Tokens: A Misused Term That’s Lost All Meaning?

[Samantha Jones]

Every project calls its coin a “utility token,” but 90% of the time, the only utility is to pay for gas or unlock staking. That’s not real utility—it’s tokenomics theater.

Why haven’t we evolved toward true in-protocol value exchange, where holding the token provides actual access, priority, or off-chain benefit?

 

[Aesthatic girl]

Great point—and the tide may finally be turning. We're starting to see protocols explore deeper utility: governance with real influence, tiered access to tools, identity layers, and even IRL perks. As user expectations rise, so will demand for genuine functionality. Real utility could soon become the new baseline, not the exception.

 

[Ruksh]

It’s like calling a Chuck E. Cheese token a "utility asset for interactive entertainment environments" when all it does is let you play skee-ball and maybe buy stale pizza. Waiting for the day a token actually gets me priority on pizza delivery or free parking at the mall.

 

[SUNSHINE]

Exactly—most “utility tokens” are just glorified toll passes or staking bait. It’s smoke and mirrors dressed up as innovation. Until protocols start embedding tokens into real workflows, commerce, or access control, we’re stuck in a loop of circular value. Time to demand more than just gas discounts and staking fluff.

 

[Snowy]

Yes! This is the kind of challenge the space needs. True utility means integration into real-world value flows—exclusive access, priority services, and tangible perks. Imagine tokens unlocking IRL experiences, granting DAO governance with weight, or fueling decentralized commerce. The foundation’s there—let’s build beyond gas and staking into something genuinely game-changing.

 

[Munashak]

Yeah I've been thinking the same lately it feels like we're just going in circles with most of these tokens. Everyone talks about utility but when you look closer it's just gas fees and staking rewards. Makes you wonder if there’s any real innovation happening or if it’s all just keeping the hype alive without substance. I’m starting to worry we’re building on a shaky foundation again.