Token
A digital asset created on an existing blockchain, as opposed to a native cryptocurrency like ETH or BTC.
In-Depth Explanation
Tokens are built on top of existing blockchains using standards like ERC-20 (Ethereum). Unlike native coins that secure their own network, tokens inherit security from their host chain. Tokens can represent anything: governance rights, utility access, real-world assets, or purely speculative value.
Related Terms
Utility Token
A token designed to provide access to a product, service, or functionality within a specific ecosystem.
Security Token
A blockchain token that represents ownership of a real-world asset or investment contract.
Governance Token
A token that grants voting rights over protocol decisions, parameters, and treasury allocation.
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.