Recently, there has been an increasing number of new cryptocurrencies and an oddly large community that supports them. However, while they’re posting and talking about it on Twitter, Discord, and Telegram, everyone is left wondering; what’s going on?! Perhaps a better question than asking why there is such a passionate community behind this coin is: what does it even do?
To people who are new to crypto, one common question they have is where do crypto prices come from? To be fair, that’s a question even people who have been trading crypto for a while still wonder sometimes, and it is totally a valid question!
Although we can’t tell you exactly why a certain cryptocurrency is worth its listing price, we can tell you that one factor is token utility. If you’re wondering what token utility is, it simply means what the cryptocurrency can do or what it’s used for.
Before we move further, it’s useful to learn the difference between a coin and a token. Of course, it goes much deeper than this, but we can simply put that coins usually serve as a store of value or medium of exchange, while tokens have much more utility and are used for things such as voting, purchasing items on a platform, representing identity, and even as a profile picture, as an NFT!
It’s common for many decentralized apps (dApps) to have their own token, which also goes for metaverse platforms. Although there are so many different dApps and functions within them, tokens are generally used in similar ways.
Using metaverse tokens as an example, we can explain what the general functionalities of a token are.
- In-Game Medium of Exchange
In each metaverse platform, there will be a native currency used for all in-game transactions, such as user-generated content. For example, to enter a paid user-created SPACE game, players will have to enter by paying $SPCE to the creator.
You can also stack up your metaverse tokens and stake them! Each metaverse platform has different ways of rewarding their community, especially when they’re stakers. Whether it be exclusive NFTs, items, or privileges, you can be sure that staking $SPCE will pay off! 😉
Just like staking rewards, tokens can be given to users who have shown extensive dedication to the platform. For example, you can earn tokens after every in-game transaction or engagement like a money-back program at a store.
- Unlock More of the Metaverse
Although you can enter many of the top metaverse platforms for free, you will sometimes run into a paywall where access is allowed after paying some tokens or purchasing a membership. Luckily, you can explore the vast SPACE metaverse for free, so adventure to your heart’s content!
The success of GameFi has proven to be one of the most revolutionary abilities of the blockchain. In many GameFi games, players are able to earn the native token to buy and utilize items to make more valuable items to sell or directly sell on an exchange for profit.
Indeed, the metaverse is still new, and we are still too early to tell of all its capabilities, but one thing is sure, there are more exciting features and benefits to be unlocked. Furthermore, it is important to note that there are still many other functionalities of metaverse tokens that were not discussed in this list, and we will share them with you in future articles!
Finally, we’re excited to show everyone the amazing utility of the official SPACE token, SPCE, coming soon, so stay tuned!
ABOUT SPACE
SPACE is a metaverse catering to the arts and commerce and aiming to provide powerful builder tools that allow users to design and create immersive commerce spaces without barriers.
It is the glue to the various metaverses, bridging the many virtual worlds into one trading hub. We are focused on creating a vibrant user-owned economy through unifying knowledge, joint effort, and fair rewards distribution based on a culture of collaboration and economic opportunities.
For more information on this immersive and personalized metaverse, check out the link: space-metaverse.com.
