Native Asset Economy

Definition ∞ A Native Asset Economy refers to an economic system built around the primary digital asset of a particular blockchain network. This asset typically serves as the medium of exchange, store of value, and unit of account within that specific ecosystem. It powers transaction fees, staking mechanisms, and governance processes. The health of this economy is intrinsically linked to the utility and adoption of its core asset.
Context ∞ The concept of a Native Asset Economy is fundamental to understanding the value proposition and operational mechanics of most blockchain platforms. Debates often address the monetary policy of these native assets, their inflation or deflationary characteristics, and their role in network security. Future developments will likely involve the expansion of utility for native assets through new applications and services, further strengthening their economic significance within their respective ecosystems.