Your Guide to Tokens: Types, Design, Uses, More

with @eddylazzarin @skominers @milesjennings @rhhackett Today we're diving deep into *the* defining concept in crypto: tokens.  We're moving beyond conventional categories — like “governance tokens” or “utility tokens” or even “memecoins” — to present a full taxonomy that details what tokens are, what they aren’t, and what they're capable of becoming. Questions we'll explore include: What is a token? Is it a form of money? A piece of data? Something else? How many types of tokens are there — and who is in control of each? And how should we think about their actual economic, legal, and technical characteristics? We'll also dig into different token designs and their uses; where tokens derive value from; how they jibe with securities laws; and much more. In this conversation, you’ll hear from several experts on the a16z crypto team who have developed a new 7-part framework for classifying tokens, which you can find linked below. Joining us are the coauthors: Chief Technology Officer Eddy Lazzarin, General Counsel and Head of Policy Miles Jennings, and Research Partner Scott Kominers, who is also a Professor at Harvard Business School where he teaches courses on market design and entrepreneurship.  Check out the resources below for a flowchart that we’ll also be referencing throughout this episode and that will be helpful as we wend our way through the token idea maze. Timestamps: (0:00) Introduction (3:28) The Evolution of Token Terminology (6:19) Classifying Tokens: Economic, Legal, and Technical Dimensions (8:37) Moving Beyond “Governance Tokens” (12:05) Inherent Value: The Memecoin Debate (15:35) Company-Controlled Tokens: Risks and Realities (31:33) Arcade Tokens: Stability and Utility (46:00) The Power of Blockchain Interoperability (49:34) Shared Rewards and Loyalty Programs (59:19) Asset-Backed Tokens and Their Mechanisms (1:08:23) Collectible Tokens and Their Uniqueness (1:14:31) Network Tokens: The Future of Decentralized Marketplaces (1:31:03) Regulatory Challenges and "Lawyer Tokens"  (1:36:57) Final Thoughts and Future Prospects Resources referenced in this episode:7 canonical tokens, defined [see flowchart] by Miles Jennings, Scott Duke Kominers, and Eddy Lazzarin (a16z crypto newsletter, March 2025)Defining tokens by Miles Jennings, Scott Duke Kominers, and Eddy Lazzarin (a16z crypto, March 2025)Network tokens vs. company-backed tokens by Miles Jennings, Scott Duke Kominers, and Eddy Lazzarin (a16z crypto, March 2025)Defining decentralization: It comes down to control by Miles Jennings (a16z crypto, February 2025)Read Write Own: Building the Next Era of the Internet by Chris Dixon (Penguin Random House, January 2024)The Everything Token: How NFTs and Web3 Will Transform the Way We Buy, Sell, and Create by Steve Kaczynski and Scott Duke Kominers (Penguin Random House, January 2024) As a reminder, none of the content should be taken as investment, business, legal, or tax advice; please see a16z.com/disclosures for more important information, including a link to a list of our investments.