Native Tokens

Definition ∞ Native tokens are the primary digital assets intrinsic to a specific blockchain network, essential for its operation and security. They serve various purposes, including paying transaction fees, participating in network governance, and acting as collateral for staking mechanisms. Unlike tokens issued on top of a blockchain, native tokens are fundamental to the underlying protocol’s design. Examples include Bitcoin on the Bitcoin network or Ether on Ethereum.
Context ∞ Native tokens are central to the economic models and decentralization efforts of blockchain platforms, with their utility and distribution frequently discussed in news. The current situation often involves debates over their classification by regulators and their role in network security. Future developments include advanced tokenomics designs that enhance network utility and user participation.