A token issued by an exchange to provide fee discounts, rewards, or governance rights within that platform's ecosystem.
Exchange tokens align user incentives with platform growth through fee rebates, tiered perks, and staking rewards. Some incorporate governance features for listings or parameter changes.
Holding an exchange token may reduce trading fees by placing the user in a higher VIP tier, or enable participation in launchpad token sales.
Risks include regulatory scrutiny, changing token economics, and platform dependence. Token value often correlates with exchange volumes and revenues.
A downturn in exchange activity can decrease buybacks and utility, weakening the token’s value proposition.
All terms and definitions may update as the Cryptionary improves.