Definition ∞ Subnet token utility refers to the specific functions and benefits that a native token provides within a particular subnet or custom blockchain built on a larger network. This utility might include governance rights, transaction fees, staking for security, or access to specialized services within that subnet. It defines the token’s intrinsic value within its ecosystem. It drives subnet participation.
Context ∞ In multi-chain architectures like Avalanche, understanding subnet token utility is critical for evaluating the economic model and long-term viability of custom blockchains. The design of these tokens directly impacts a subnet’s security, decentralization, and economic activity. News often covers new subnets launching and the specific utility propositions of their tokens, which can drive investor interest and network participation.
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