Asset-Backed Tokens will lead to the first truly valuable Utility Tokens
Abstract: I will argue that a true utility token must perform a function that is both unique and valuable before its value is not wholly speculative in nature. One protocol that will provide enough utility to use its own token for clearing transactions will be 0x (ZRX). As the 0x protocol begins to facilitate trade of asset-backed-tokens (which by their definition are not currency), these transactions will clear with ZRX because each asset being exchanged is non-fungible/unique and cannot include more of itself for the vig. As the protocol is used more and the network grows, the intrinsic value will be more closely matched with the price of ZRX. After this happens, the ZRX token will also become a viable governance staking mechanism. In order to be a viable governance staking mechanism, the unit being staked must carry with it some inherent value that is not specifically and majorly linked to speculative demand…
