Types of Tokens and Digital Assets BBLC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   A company tokenizes its corporate bonds on a blockchain, allowing investors to trade fractional ownership of the bonds. How are these tokens most likely classified?

   • AGovernance tokens
   • BPayment tokens
   • CSecurity tokens
   • DUtility tokens
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A blockchain project is designing its token economy. They want to encourage early adoption and long-term holding, while also funding ongoing development. Which token distribution and utility strategy best aligns these goals?

   • ACreate a fixed supply with no utility, relying on scarcity to drive value.
   • BSell all tokens to investors upfront to maximize funding.
   • CDistribute all tokens equally to all users at launch.
   • DAllocate a portion of tokens to a development fund, and reward early users with tokens that also grant governance rights.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A commodity trading firm wants to issue a digital token that represents a claim on physical gold stored in a vault. The token should be redeemable for the gold, and the firm wants to ensure the token's value tracks the gold price. Which token type should the firm issue?

   • AA utility token that grants access to the firm's trading platform
   • BA governance token that allows holders to vote on vault management
   • CAn asset-backed token, with each token representing a specific amount of gold
   • DA payment token pegged to a basket of fiat currencies
   Reveal Solution Discussion Select an answer first
5. 14expert · hard

   A protocol is launching a governance token. The team wants to maximize participation in governance while also ensuring that decisions are made by informed, long-term stakeholders. They are considering (a) a liquid token that can be traded freely, (b) a token with a vesting period before voting rights activate, or (c) a token that requires locking (staking) to vote. Which design best balances participation and informed decision-making?

   • AAllow free trading and immediate voting with no lock.
   • BRequire token locking (staking) to vote, with a minimum lock period.
   • CUse a vesting period before voting rights activate, but allow trading during vesting.
   • DDelegate all voting to a small elected council.
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A cross-border remittance company wants to issue a digital currency that customers can use to send money internationally with low fees. The token should be stable in value and primarily used for transactions, not as an investment. Which token type best matches this requirement?

   • ASecurity token, because it represents value.
   • BPayment token, ideally pegged to a fiat currency to reduce volatility.
   • CUtility token, because customers use it to pay for the service.
   • DGovernance token, because it facilitates transactions.
   Reveal Solution Discussion Select an answer first