Protocol-Native Assets

Definition ∞ Protocol-Native Assets are digital tokens that are intrinsically linked to and typically required for the operation of a specific blockchain protocol. These assets often serve multiple functions, including facilitating transaction fees, participating in governance, or acting as collateral within the network’s economic model. They are integral to the security and functionality of their underlying blockchain. They are foundational to a network’s operation.
Context ∞ In cryptocurrency news, protocol-native assets are frequently discussed as indicators of a blockchain’s utility and long-term value proposition. Their design and tokenomics are closely scrutinized, as they directly influence network adoption and security. Developments concerning these assets, such as staking mechanisms or burning events, are closely watched by market participants for their impact on supply, demand, and overall network health. These assets are central to the economic model of a blockchain.