To build a commercial application that enables value transfers, the developers must first commit to a independent system structure that isolates the intended medium of exchange, i.e. a security, currency or loyalty token. This is required so the service can meet compliance demands of all transactions being between KYC'd participants, thus preventing transactions with anonymous wallets.
This requirement is complex but necessary to prevent discrete value transfer transactions with the underlying anonymous currency.
As a result the underlying token simply acts as a 'transaction logger' bringing no other value to the isolated service atop the chain, and only generating transaction income, not currency demand, for the parent crypto.
Whereas, if identity and KYC is inherent to the the base layer, there are numerous game changing benefits. Please click here to comment, to ask questions and to explore why inherent KYC is such a game changer