I’m going down the rabbit hole and people are forced to queue up for what I’m assuming is the equivalent of a serial key?

Not quite. A serial key is permanent, it lasts forever, although some software did try to use online and update services to identify bad serials this was trivial to block, because it’s essentially trying to backpedal a valid key into an invalid one. It only needs to be valid once, then you make sure to block anything that invalidates it afterwards (usually blocking the update servers at the DNS level), job done.

That’s different from a token. Tokens use something along the lines of at least rolling-code type security, similar to how your car keys or garage door opener keep generating new codes so someone with a scanner can’t just record the code it uses once and then have that be copied and replayed over and over again indefinitely. The trick with a token like this is that you need to keep updating it or it becomes invalid after some timeframe or number of uses. Hence the online activation. That’s required to get your next token or set of tokens.