Types of Tokens and Digital Assets BBLC Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A digital artist wants to sell a one-of-a-kind digital artwork and prove ownership of the original piece. The artist also wants to receive royalties on secondary sales. Which token type should the artist use?

   • AA security token representing a share in the artist's future earnings
   • BA fungible utility token that grants access to the artist's portfolio
   • CA payment token used to purchase the artwork
   • DA non-fungible token (NFT) representing the unique artwork, with royalty logic in the smart contract
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A digital artist wants to sell a unique piece of digital art and prove ownership and provenance on a blockchain. The buyer should be able to verify that they own the original artwork, not just a copy. Which token standard and type should the artist use?

   • AUse a payment token to transfer ownership off-chain.
   • BIssue a security token backed by the artwork's value.
   • CIssue a non-fungible token (NFT) that represents the unique artwork.
   • DIssue a fungible utility token that grants access to the artwork.
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A central bank is exploring a digital currency for retail payments. The bank wants the currency to be a direct liability of the central bank and to maintain a stable value. Which token type best fits this description?

   • AA governance token that allows holders to vote on monetary policy
   • BA utility token that grants access to the central bank's services
   • CA security token representing a bond issued by the central bank
   • DA central bank digital currency (CBDC) that is a payment token backed by the central bank
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A blockchain project plans to launch a token with a fixed supply of 100 million. The team wants to incentivize early adoption and long-term holding, while also ensuring the community has a say in future development. Which tokenomics design best balances these goals?

   • AAllocate 20% to a community treasury governed by token holders, 30% to a staking rewards pool, and 50% to a public sale with a vesting schedule
   • BAllocate 100% to the founding team with no vesting, and no community allocation
   • CAllocate 50% to a burn mechanism, 50% to the team, and no public sale
   • DAllocate 10% to the community, 10% to the team, and 80% to a private sale to venture capitalists
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   In a blockchain-based cloud storage platform, users must hold and spend the platform's native token to pay for storage space. What is the primary purpose of this token?

   • ATo serve as a stable medium of exchange for everyday purchases
   • BTo provide access to the storage service
   • CTo represent an ownership stake in the company
   • DTo grant holders voting rights on platform upgrades
   Reveal Solution Discussion Select an answer first