risk managementred flagtoken utility decreases over time
Token Utility Gradual Erosion
Why it matters

Eroding token utility can trigger sudden price crashes, investor lawsuits and regulatory claims of misrepresentation or unregistered securities issuance.

Risk Triggers
  • Competitor Feature Parity

  • Fee Redenomination

  • Governance Change

  • Protocol Upgrade Reduces Token Role

Controls & Mitigations

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Risk profile

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