A native gas token is a cryptocurrency specifically designed to pay for transaction fees and computational resources on its underlying blockchain network. It serves as the fundamental economic unit for operating the network, compensating validators or miners for their work. Without this token, users cannot execute operations or smart contracts on that particular chain. It powers network activity.
Context
News about blockchain networks consistently mentions the native gas token, especially when discussing network congestion, fee markets, or tokenomics. Fluctuations in its value can significantly impact the cost of using the blockchain. Understanding the role of the native gas token is essential for comprehending the economic incentives and operational mechanics of any given layer-1 or layer-2 protocol.
The purpose-built, stablecoin-native L1 architecture abstracts gas volatility, transforming USDT from a mere asset into the ecosystem's core payment rail.
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