Exchange Tokens

Centralized exchange (CEX) tokens

• How perks work: The company decides benefits (fee tiers, VIP access, occasional rebates, launch access).
• Where rules live: Mostly off-chain: in the platform’s terms and internal systems.
• Main risks: Company/operational risk; policy changes; jurisdictional restrictions; token may be closely tied to platform reputation.

Decentralized exchange (DEX) tokens

• How perks work: On-chain governance can set fees, incentives, and treasury usage.
• Where rules live: Smart contracts + governance forums/votes; changes are public and require proposals.
• Main risks: Smart-contract bugs, governance capture by large holders, unclear revenue links.

Fee discounts

Hold or lock tokens to pay lower trading fees or get better tiers.

Staking/locking perks

Lock tokens for VIP support, airdrop eligibility, or redemption coupons. (Details vary; always check terms.)

Governance votes (DEX)

Vote on parameters: fee splits, liquidity incentives, treasury grants, new markets.

Liquidity mining (DEX)

LPs earn the token for providing liquidity; rewards can change over time.

Buyback & burn policies

Some projects spend a portion of revenue to buy tokens and destroy (“burn”) them, reducing supply. Policies can be changed by the issuer/governance.

Access & launches

Eligibility for token launches, allowlists, or premium features when certain balances or locks are met.

• Platform risk (CEX): If the company changes policies or faces trouble, token perks and perceived value can be impacted.
• Regulatory changes: Rules differ by country and can change; listings can be added or removed.
• No ownership claim: Unless explicitly stated, tokens generally don’t grant equity, dividends, or creditor rights.
• Liquidity risk: Low-liquidity tokens can have large price swings and slippage.

• Governance capture (DEX): Large holders can steer votes; low turnout can pass risky proposals.
• Smart-contract risk (DEX): Bugs in fee routers, treasuries, or staking contracts.
• Token inflation: High emissions can dilute holders if demand doesn’t keep up.
• Opaque metrics: If revenue links or buyback policies aren’t transparent, benefits may be overstated.

Using a CEX token for lower fees

1. Hold the required balance in your exchange account or wallet.
2. Opt-in to fee discounts if required by the platform’s settings.
3. Trade as usual; the system applies the tiered discount automatically.

Voting with a DEX token

1. Visit the DEX’s official governance portal from its docs.
2. Connect your wallet, delegate (optional), and read proposals.
3. Vote for/against; results execute via timelocks/multisigs if passed.

Before holding/using one

• Utilities clearly listed in official docs?
• Supply schedule, vesting, and unlock calendar transparent?
• For DEX: audited contracts, clear governance process, and quorum rules?
• For CEX: jurisdiction, terms, and policy change history reviewed?
• Liquidity healthy on reputable venues?

Operating safely

• Bookmark official URLs; beware of phishing/impersonation.
• Use small test transactions; verify contract addresses from docs.
• Don’t over-rely on buyback/burn promises; confirm mechanisms and control keys.
• Monitor proposals (DEX) and announcements (CEX) for rule changes.