Tokenization & Digital Assets Flashcards
6 cards from real CBSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Tokenization & Digital Assets flashcards as text
What is the main advantage of using a token curated registry (TCR) in a blockchain ecosystem?
Answer: It uses token-based incentives to crowdsource the curation of a trusted list
A TCR aligns financial incentives so that token holders who curate accurately are rewarded, creating a self-governing, spam-resistant list maintained by economic stakeholders.
When designing a tokenized supply chain system, which approach best ensures the provenance of a physical good mapped to an NFT?
Answer: Combining IoT sensor attestations with on-chain NFT minting at each custody transfer point
IoT attestations at each transfer point create an immutable, timestamped chain of custody events linked to the NFT, preventing retroactive provenance fraud.
What is the 'token velocity problem' in token economics?
Answer: High token turnover reduces token value because holders have no incentive to hold long-term
When tokens are used purely as a medium of exchange and quickly sold, high velocity depresses price because demand is purely transactional with no store-of-value incentive.
Which token model aligns with a 'work token' design where value accrues to stakers who perform services?
Answer: Protocol where only staked token holders can provide services and earn fees
Work token models require service providers to stake tokens as a bond to participate, so token demand grows with network demand for services, directly linking token value to usage.
A CBSA architect is designing a tokenized carbon credit system. Which on-chain feature is most critical for environmental integrity?
Answer: Automatic token retirement (burning) after a credit is claimed to prevent double-counting
Burning a carbon credit token upon retirement creates an irreversible on-chain record that the credit has been used, preventing the same credit from being claimed twice.
What is the key distinction between a governance token and a dividend token?
Answer: Governance tokens grant voting rights on protocol decisions; dividend tokens entitle holders to a share of protocol revenue
Governance tokens confer decision-making power over protocol upgrades and parameters, while dividend tokens distribute a portion of protocol earnings, serving fundamentally different holder incentives.