Definition ∞ A token recovery mechanism is a protocol or procedure designed to help users regain access to their digital assets if they lose their private keys or seed phrases. These mechanisms often involve multi-party computation, social recovery, or time-locked contracts to ensure secure retrieval. It provides a safety net against irreversible loss of funds due to unforeseen circumstances.
Context ∞ The absence or presence of robust token recovery mechanisms is a significant security and usability consideration for digital asset wallets and decentralized applications. News regarding lost funds or hacks often highlights the need for such features to improve user protection and reduce the risk of permanent asset loss. It is a key area of innovation in wallet technology and user experience.
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