A16Z ON NETWORK TOKENS

Summary from the TLDR Crypto newsletter

Network tokens derive their value from the functioning of blockchains and smart contract protocols. These tokens often embed economic mechanisms like buybacks, burns, or dividends, and can bootstrap new networks while decentralizing control. Under frameworks like the SEC's 2019 guidance and FIT21, tokens like BTC, ETH, SOL, and UNI may avoid securities classification when decentralization ensures systems operate without human control.