Types of Tokens and Digital Assets BBLC Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   What is the defining characteristic of an asset-backed token?

   • AIt is used primarily as a medium of exchange.
   • BIt provides access to a digital platform's services.
   • CIt grants the holder voting rights in a protocol.
   • DIt represents a digital claim on a real-world asset.
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   An artist mints a digital artwork as a token that is unique and cannot be replicated. Each token has distinct metadata and ownership is tracked on a blockchain. What type of token is this?

   • AUtility token
   • BFungible token
   • CNon-fungible token (NFT)
   • DPayment token
   Reveal Solution Discussion Select an answer first
4. 18foundation · easy

   Which statement accurately describes a non-fungible token (NFT)?

   • ANFTs are unique digital assets representing ownership of specific items or content.
   • BNFTs grant holders voting rights in a protocol's governance.
   • CNFTs are primarily used as a medium of exchange for everyday transactions.
   • DEach NFT is identical and interchangeable with other NFTs of the same type.
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   Which statement best describes the function of a utility token?

   • AIt gives the holder voting power in protocol governance decisions.
   • BIt grants the holder the right to use a specific product or service.
   • CIt represents a legal claim on a physical asset such as gold or real estate.
   • DIt provides the holder with a share of the project's future revenues.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A decentralized lending protocol wants to decentralize decision-making. The team plans to issue a token that allows holders to propose and vote on changes to interest rate models and collateral factors. Which token type should the protocol issue?

   • AA governance token with voting power proportional to holdings
   • BA payment token used to pay interest on loans
   • CA utility token that only grants access to the lending platform
   • DAn asset-backed token representing a claim on the protocol's treasury
   Reveal Solution Discussion Select an answer first