What is the difference between utility tokens and governance tokens?

Governance tokens are an upgraded version of utility tokens. Because of that, they are obviously the better option. As previously mentioned, governance tokens can also be used for other processes, like staking and creating loans. So, there is really no reason why one should prefer utility tokens over governance tokens.

What is the difference between utility tokens and Binance?

The fundamental difference is that utility tokens feature no governance power. Binance users can indeed vote on token listings, but beyond that, nothing else can be changed. Users cannot use BNB to decide on other more critical features or to cast their vote and decide to change how Binance looks or works.

What are governance token special rights?

In the case of governance tokens, the special rights would refer to the rights for influencing the future direction of a protocol. Many DeFi protocols, such as Compound and Uniswap, have shown how their utility tokens took up the responsibilities of governance tokens.

What is a security token?

Users who hold the security token will also gain ownership of the company. Blockchain provides a platform that can be used to create a voting system that allows investors to exercise control over the decision-making process of the company. In short, a cryptocurrency token that passes the Howey Test is deemed as a security token.