Token Classification

Kajetan Olas

11 Mar 2024
Token Classification

Tokens, the lifeblood of blockchain ecosystems, are more than mere currency—they embody varying rights, functions, and roles. In this article, we demystify the complexities of token types, exploring how they differ and what makes each unique. Stay with us, as we dive into the intricacies of Token Classification!

Technology Domain of Token Classification

The technology underpinning a token determines its potential and applicability in a blockchain ecosystem. Here's a closer look at the technical classification:

Chain Type

  • Chain-Native Tokens: These are the foundational tokens of a blockchain, crucial for the network's operation and maintenance.
  • Forked Chain Tokens: Born from divergences in consensus, these tokens represent the evolution and diversity within blockchain technology.
  • Tokens Issued on Top of a Protocol: These tokens utilize existing blockchain infrastructures, showcasing the adaptability and expansiveness of digital assets.

Permission Levels

  • Permissioned Blockchains: With controlled access, these blockchains offer a more regulated environment.
  • Permissionless Blockchains: Open and decentralized, these blockchains champion freedom and inclusivity in network participation.

Number of Blockchains

  • Single-Chain Tokens: Confined to one blockchain, these tokens often signify simplicity and stability.
  • Cross-Chain Tokens: The bridgers of the blockchain world, they facilitate interoperability and connectivity among diverse networks.

Representation Type

  • Common Representation: Uniform in their features, these tokens reflect the collective movement of the market.
  • Unique Representation: Each token is distinct, carrying specific characteristics that set it apart from its peers.

Understanding these technical facets of tokens is crucial for stakeholders to navigate the blockchain landscape effectively. From developers shaping the next decentralized application to investors gauging the value of digital assets, recognizing these classifications is key when reading about blockchain technology.

Behavior Domain of Token Classification

Diving into the Behavior Domain, we uncover the functional characteristics that define the roles and uses of tokens within their ecosystems. This domain is pivotal because it dictates what you can do with a token and how it behaves independently of external factors.

Burnability

  • Burnable: These tokens can be destroyed, often to manage supply and add scarcity.
  • Non-Burnable: These tokens cannot be destroyed, providing a consistent supply.

Expirability

  • Expirable: With a digital "shelf-life", these tokens can be programmed to expire.
  • Non-Expirable: These tokens remain indefinitely, preserving their utility over time.

Spendability

  • Spendable: These tokens can be used as a medium of exchange within their ecosystems.
  • Non-Spendable: Often representative or for governance, these tokens aren't meant for transactions.

Fungibility

  • Fungible: Interchangeable and identical in value, like traditional currency.
  • Non-Fungible (NFTs): Unique and distinct, each with individual characteristics.
  • Hybrid: Combining traits of both, with conditional fungibility.

Divisibility

  • Fractional: These can be divided into smaller units, allowing for micro-transactions.
  • Whole: Indivisible, these tokens maintain their value as a single unit.
  • Singleton: Unique, one-of-a-kind tokens that cannot be replicated or divided.

Tradability

  • Tradable: These tokens can be exchanged or sold.
  • Non-Tradable: Tied to their owner, these tokens often relate to rights or memberships.
  • Delegable: Ownership remains, but usage rights can be passed on.

The Behavior Domain is essential for understanding what actions a token can facilitate, whether it's trading, voting, or accessing a platform's features. This knowledge enables users to navigate the complexities of the blockchain space more confidently and make informed decisions about the tokens they interact with.

Coordination Domain of Token Classification

The Coordination Domain addresses how tokens incentivize and manage participant interactions within the ecosystem. This domain highlights the strategic elements designed to guide behaviors towards achieving collective goals.

Underlying Value

  • Asset-based: Value tied to physical or digital assets.
  • Network Value: Dependent on the ecosystem's activity and token utility.
  • Share-like: Reflects equity-like characteristics and often faces regulatory scrutiny.

Supply Strategy

  • Schedule-based: Tokens are released according to a predetermined plan.
  • Pre-mined: Tokens are created all at once, with distribution occurring over time.
  • Discretionary: Issuance at the issuer's discretion, often for unique assets.
  • Matching demand: Supply adjusts in response to market demands.

Incentive Enablers

These are the token features that enable stakeholders to participate meaningfully in the ecosystem, including:

  • Rights to work or use: Tokens provide access to network functionalities or services.
  • Rights to vote: Tokens allow participation in governance decisions.
  • Financial roles: Tokens can serve as units of account, mediums of exchange, or stores of value.

Incentive Drivers

Incentive Drivers motivate stakeholders to use tokens in ways that benefit the network and themselves. This can include:

  • Access: Using tokens to engage with the network's offerings.
  • Financial incentives: Earning potential through dividends, rewards, or appreciation.
  • Governance: Influencing the ecosystem's evolution.

The Coordination Domain ultimately combines the token's economic and strategic designs to create a cohesive system that aligns individual actions with the broader objectives of the blockchain ecosystem.

https://www.sciencedirect.com/science/article/pii/S2096720922000094

Conclusion: The Multifaceted World of Token Classification

In our journey through token classification, we've unpacked the intricate layers that define tokens in the blockchain realm. From the foundational technology that undergirds their existence to the behaviors they exhibit and the strategic roles they play. Tokens are as varied as they are vital to the ecosystems they populate. Understanding these classifications is more than academic; it empowers participants to navigate, innovate, and invest with greater clarity and purpose. As blockchain technology continues to evolve, so too will the taxonomy of tokens. At Nextrope, we're not just observers but active participants and builders in this vibrant and ever-expanding digital landscape.

If you're looking to design a sustainable tokenomics model for your DeFi project, please reach out to contact@nextrope.com. Our team is ready to help you create a tokenomics structure that aligns with your project's long-term growth and market resilience.

source: https://www.sciencedirect.com/science/article/pii/S2096720922000094

FAQ

What are the main categories for token classification?

  • Tokens are categorized based on technology, behavior, and coordination domains.

How to define Chain-Native Tokens?

  • As foundational tokens crucial for a blockchain's operation.

What is the significance of Burnability in token classification?

  • It indicates whether a token can be destroyed to manage supply.

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Master UI Component Creation with AI: The Ultimate Guide for Developers

Gracjan Prusik

24 Mar 2025
Master UI Component Creation with AI: The Ultimate Guide for Developers

Introduction

Modern frontend development is evolving rapidly, and creating UI components with AI tools is helping developers save time while enhancing interface quality. With AI, we can not only speed up the creation of UI components but also improve their quality, optimize styles, and ensure better accessibility.

This article explores how creating UI components with AI is transforming frontend development by saving time and improving workflows. Specifically, we will discuss:

  • Generating components from images,
  • AI for style analysis and optimization,
  • Automatic style conversion and code migration,
  • AI in generating UI animations.

Creating UI Components with AI from Images

One of the interesting applications of AI in frontend development is the ability to generate components from an image. AI can recognize the structure of the interface and generate HTML/CSS or JSX code that matches the provided image. One of the most popular tools for UI creation is Lovable.

For testing, let's see how the tool performs in creating a simple contact form from the page you are currently on, which is Nextrope.

Query:

"Recreate the image I've sent you in Next.js using CSS."

Sample image used in the query:

The result received:

Tworzenie komponentów UI - Wygenerowany widok

Lovable did an excellent job transforming the image into code. The view is fully responsive. It’s important to remember that the more precise the request, the better the AI will replicate the expected view. However, even with a simple command, the tool performed surprisingly well.

Of course, AI has its limitations. It still makes quite a few mistakes. The generated code still requires review and fixes from the developer, but in some cases, the entire process is significantly sped up—correcting the code often takes less time than creating the component from scratch.

Optimizing UI Components with AI Tools for Style Improvements

This problem of inaccurate code reproduction by AI can be partially addressed by using it to analyze and improve styles. Tools like ChatGPT, DeepSeek and Claude are capable of not only generating code but also diagnosing CSS errors and suggesting why a particular style might not be working as expected.

Simple example: Why is the div not centered?

Query: "Why is this div not centered?"

AI analyzes the code and provides the following response:

Problem: The parent container does not have a defined width or display: flex.
Solution: Add the appropriate styles to the parent container.

.parent {
  display: flex;
  justify-content: center;
  align-items: center;
  width: 100vw;
  height: 100vh;
}

AI for Automatic Style Conversion and Code Migration in UI Components

AI can assist with style conversion between different technologies, such as transferring code from traditional CSS to Styled Components or Tailwind CSS.

Let's assume we have a style written in traditional CSS:

.button {
  background-color: blue;
  color: white;
  padding: 10px 20px;
  border-radius: 5px;
  transition: background-color 0.3s ease;
}

.button:hover {
  background-color: darkblue;
}

We can use AI for automatic conversion to Styled Components:

import styled from "styled-components";

const Button = styled.button`
  background-color: blue;
  color: white;
  padding: 10px 20px;
  border-radius: 5px;
  transition: background-color 0.3s ease;

  &:hover {
    background-color: darkblue;
  }
`;

export default Button;

AI can also assist in migrating code between frameworks, such as from React to Vue or from CSS to Tailwind.

This makes style migration easier and faster.

How AI Enhances UI Animation Creation

Animations are crucial for enhancing user experience in interfaces, but they are not always provided in the project specification. In such cases, developers have to come up with how the animations should look, which can be time-consuming and require significant creativity. AI, in this context, becomes helpful because it can automatically generate CSS animations or animations using libraries like Framer Motion, saving both time and effort.

Example: Automatically Generated Button Animation

Suppose we need to add a subtle scaling animation to a button but don't have a ready-made animation design. Instead of creating it from scratch, AI can generate the code that meets our needs.

Code generated by AI:

import { motion } from "framer-motion";

const AnimatedButton = () => (
  <motion.button
    whileHover={{ scale: 1.1 }}
    whileTap={{ scale: 0.9 }}
    className="bg-blue-500 text-white px-4 py-2 rounded-lg"
  >
    Press me
  </motion.button>
);

In this way, AI accelerates the animation creation process, providing developers with a simple and quick option to achieve the desired effect without the need to manually design animations from scratch.

Summary

AI significantly accelerates the creation of UI components. We can generate ready-made components from images, optimize styles, transform code between technologies, and create animations in just a few seconds. Tools like ChatGPT, DeepSeek, Claude and Lovable are a huge help for frontend developers, enabling faster and more efficient work.

In the next part of the series, we will take a look at:

If you want to learn more about how AI is impacting the entire automation of frontend processes and changing the role of developers, check out our blog article: AI in Frontend Automation – How It's Changing the Developer's Job?

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AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
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Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series