How Crypto WorksA VISUAL FIELD GUIDESearch
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ROUTE 08 / Start here

Read beyond the token ticker

Separate technical units, economic supply, and enforceable claims.

5 ideasAbout 25 minutesRead in order, or choose a step

Tokens that look identical in a wallet can embody very different rights. Some are only transferable records; others participate in contracts, governance, or offchain arrangements. This path helps turn an ambiguous balance into a set of precise questions.

  1. 01

    Token standards and allowances

    Read the interface

    A transfer standard describes behavior, not an investment promise.

  2. 02

    Token supply, incentives and value

    Map issuance and allocation

    Supply changes and distribution determine who receives new units.

  3. 03

    Governance and control

    Locate decision-making power

    Voting rules and implementation rights may not match token ownership alone.

  4. 04

    NFTs: unique tokens, separate rights

    Separate the record from the work

    A unique token does not automatically convey copyright or durable hosting.

  5. 05

    Tokenization and offchain claims

    Inspect the underlying claim

    Offchain assets require a legal and operational connection to the token.

CHECK YOUR UNDERSTANDING

Does ERC-20 compatibility say whether a token is backed?

Reveal the explanation

No. ERC-20 specifies a common interface. Backing, redemption rights, fees, restrictions, and administrative powers require separate investigation.

Another route through the ecosystemWhere does the yield come from? →