Tokens aren't cryptocurrency.

In this episode of web3 with a16z, @eddy, @skominers, @hackr, @milesjennings, break down what they really are.

Tune in: https://a16zcrypto.com/posts/podcast/token-guide-types-design-uses/

We move beyond conventional categories — like “governance tokens” or “utility tokens” or even “memecoins” — to present a full taxonomy of what tokens are, what they aren’t, and what they’re capable of becoming.

Questions we explore: 

What is a token? Is it a form of money? A piece of data? Something else? 

How many types of tokens are there — and who is in control of each? 

And how should we think about their actual economic, legal, and technical characteristics? 

We also dig into different token designs and their uses; where tokens derive value from; how they jibe with securities law; and much more.

"Governance" and "utility" aren't real token categories. What matters is their built in and inalienable (inherent) properties. You can't pray your token into being seen as a "store of value".

But you *can* create a decentralized network-marketplace with an integrated token that can be issued for incentives + capture fees for programmatic buybacks. This is a network token.

CTO @a16zcrypto, lover of https://github.com/a16z/awesome-farcaster

Correct, but this was illegal until like 3 months ago lol

So only now do people feel good about this.

💯 agreed! stop hand-waving about “utility” or “governance” unless those features are deeply coded into your protocol’s economics. If your token doesn’t have inherent economic gravity in the network, it won’t matter what category you put on the whitepaper. 💪🏾