Definition ∞ An ecosystem currency is a native digital asset or token that serves as the primary medium of exchange and utility within a specific blockchain network or decentralized application. This currency often facilitates transactions, pays for network fees, or grants governance rights to its holders. Its value is intrinsically linked to the activity and utility within its designated digital environment. It acts as the economic lifeblood of its particular system.
Context ∞ The state of ecosystem currencies is frequently analyzed for signs of network health, user adoption, and economic viability. Discussions often center on tokenomics models, inflationary or deflationary mechanisms, and the distribution methods that influence a currency’s long-term sustainability. A critical future development involves the evolution of these currencies to support increasingly complex decentralized autonomous organizations and cross-chain functionalities, expanding their utility beyond single networks.
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