What Makes a Utility Token Actually Useful?

[Andrew]

Too many utility tokens just sit idle. Which tokens actually deliver utility—governance, staking, access, real on-chain functionality? Share the ones that you actually use regularly and why. Also curious: what kinds of use cases do you want to see more utility tokens designed for?

 

[Daruk]

I appreciate this perspective a lot. The reality is that most utility tokens overpromise and underdeliver, with many serving as little more than speculative assets. From a long-term view, the projects that will endure are the ones embedding their tokens into real, indispensable on-chain workflows. Tokens like $ETH for gas, $LINK for oracle services, AAVE for governance and staking within lending markets these are examples where the token's role is foundational, not optional.


I’d like to see more tokens designed for infrastructure-level functionality. Not just access to a platform, but tokens that actively secure, maintain, or operate essential parts of decentralized ecosystems. Decentralized storage, compute resources, encrypted messaging, or even autonomous network maintenance are areas where real utility is both needed and monetizable. The future belongs to protocols that treat their token not as a fundraising tool, but as the fuel that keeps their systems running.

 

[James Henry]

Many utility tokens promise functionality but end up as glorified placeholders for speculation. True utility lies in consistent use—tokens like ETH for gas, LINK for oracle data, or AAVE for lending governance actually serve on-chain roles. Governance tokens often lack real power unless backed by active communities and transparent protocols. There's growing demand for tokens that unlock real services—like access to platforms, data, or exclusive content. The future of utility tokens depends on aligning functionality with user incentives, not just hype-driven design.

 

[Ruksh]

Love this topic totally agree that too many tokens are just speculative chips with no real function. The ones I actually use and appreciate are things like $ARB and $OP for governance and protocol incentives, $ETH for staking and gas (obviously), and $GMX for real revenue-sharing and on-chain trading utility. Also a big fan of $ENS for identity and naming services, feels like one of the cleanest examples of actual on-chain utility in the wild.


Would love to see more tokens designed around decentralized storage, creator economy tools, and maybe even modular DeFi strategies you can plug into without having to be a power user. Real, tangible use cases people can interact with daily that's what makes this space exciting.

 

[Harry]

Utility tokens often struggle because their demand isn't intrinsically tied to usage. When tokens serve real economic functions—like governance with measurable influence, staking with dynamic yield, or access to exclusive protocols—they hold value beyond speculation. ETH and LINK are prime examples, powering infrastructure rather than marketing narratives. There’s a strong case for designing tokens that grant access to analytics, data feeds, or decentralized services. The next leap comes from embedding utility into systems where token flow drives core activity—not just rewards.

 

[Munashak]

Great topic and completely agree so many tokens out there lack meaningful utility beyond speculation. I’ve personally found real value in tokens like ETH for gas and staking, LDO for governance in Lido, and AAVE for fee discounts and protocol votes. Some gaming tokens like IMX have solid use cases for transaction fees and marketplace benefits too. Would love to see more utility tokens focused on decentralized identity, data storage rights, and access control for private on-chain services. The space has huge untapped potential when utility is baked into core protocol design.

 

[peterjohn]

ou're right—many utility tokens end up being just buzzwords with little real-world use. That said, a few do stand out: UNI and AAVE are solid for governance, LDO and DYDX offer real staking incentives, and LINK powers actual smart contract data feeds. I’d love to see more tokens tied to real access—like unlocking dApp features, paying for storage or compute (e.g., Filecoin or Arweave), or even identity/auth solutions. The key is building beyond speculation.

Totally agree—utility needs to go beyond hype. Have you come across any newer tokens doing this right with real dApp integrations?

 

[SUNSHINE]

Great points too many utility tokens end up being nothing more than speculative assets with minimal real utility. The ones that actually deliver value are those embedded deeply in their ecosystems, like governance tokens that enable meaningful protocol upgrades, staking tokens that secure networks while offering yield, and access tokens that unlock exclusive features or services on-chain. Tokens tied to tangible functionality, such as decentralized identity verification or NFT minting rights, stand out as genuinely useful. Moving forward, I’d like to see more utility tokens designed around composability and interoperability—enabling seamless cross-protocol collaboration, real-world asset tokenization, and on-chain data access. That kind of utility drives sustained demand beyond mere speculation.

Totally agree—real utility comes from being indispensable to an ecosystem, not just tradable. Composable, interoperable tokens that unlock features or power essential functions are the ones that will thrive long-term.