Skip to main content

UTIL Utility Token Positioning Paper

Version 0.1

1. Introduction​

Mātou Collective is developing $UTIL (Matou Utility Token) as part of its Indigenous Digital Infrastructure ecosystem. $UTIL is designed to function strictly as a utility token: enabling communities to access tools, storage, registration, and cultural archiving services within the Matou platform.

This paper sets out the intended nature of $UTIL, outlines why it should be considered a utility token and not a financial product under the New Zealand Financial Markets Conduct Act 2013 (FMC Act), and defines the safeguards in place to ensure it remains a functional, non-speculative token.

2. $UTIL Purpose​

  • Service Access: $UTIL is required to use Mātou-developed infrastructure (registrations, archiving, encrypted communications, storage, voting modules).
  • Contribution Rewards: Contributors to the DAO earn $UTIL when they complete verified tasks or projects.
  • Circulation Management: The Treasury issues and burns $UTIL based on usage demand and contribution verification.

$UTIL is not a governance token. Governance is managed exclusively by $COM (Community Token) and $CTR (Contributor Token), which are non-transferable and cannot be bought or sold.

3. Key Characteristics​

FeatureDesignFinancial Product Relevance
Ownership RightsNo ownership in DAO/companyNot equity security
Voting/Governance❌ NoneNot a share or voting security
Dividends/Returns❌ NoneNot a debt or equity instrument
Tradability✅ With Treasury only (controlled curve)Not open-market speculation
Utility Function✅ Required for servicesFunctions like digital credits
Treasury ControlMint/burn for use cases onlySupply managed for stability, not investment

4. Utility Token Classification​

$UTIL aligns with a utility token for service access and consumption, and is not a regulated financial product under the FMC Act.

Reasoning:

  • It is a functional token required for services, comparable to digital vouchers or credits.
  • It does not provide ownership, repayment, pooled returns, governance, or derivative exposure.
  • Any pricing mechanisms (e.g., bonding curve, fees) are designed to calibrate service access and sustainability, not to create profit expectations for holders.

5. Regulatory Safeguards​

To reinforce this classification, Mātou Collective will implement the following:

  1. Utility-First Messaging

    • $UTIL will be marketed strictly as a service access token, not an investment opportunity.
    • No promotional materials will reference profits, speculation, or “getting rich.”
    • All public materials will avoid language implying passive income, returns, or capital gains.

  2. Governance Separation

    • $COM and $CTR manage strategy and contributor decisions. $UTIL will never carry governance rights.

  3. Controlled Market Access

    • $UTIL sales (via bonding curve) will initially be limited to DAO members and TribalDAO participants.
    • Public exchange listings will not occur without cultural and legal approval.

  4. Elder Council Oversight

    • Proposals related to token sales or economic activity are subject to Elder veto to prevent exploitation or speculative harm.

  5. AML/CFT Compliance

    • Token purchases will be screened through appropriate AML/KYC processes if required by law.

6. Comparison with Financial Products (NZ FMC Act)​

  • Equity security (shares): $UTIL does not give ownership rights or dividends.
  • Debt security: No promise of repayment or fixed return.
  • Managed investment product (MIP): No pooling of funds, no common enterprise, and no reasonable expectation of profit predominantly from the efforts of others. $UTIL is earned or spent individually, for services rendered.
  • Derivatives: $UTIL is not linked to an underlying asset or index.

7. Conclusion​

$UTIL is a utility token for service access, not a financial product. It is designed as a functional token to access community infrastructure, with no ownership, governance, or speculative profit rights and no reasonable expectation of profit.

By maintaining utility-first design, strict governance separation, and cultural safeguards, Mātou Collective ensures that $UTIL operates as a digital tool for Indigenous self-determination rather than a regulated financial product.