Native Tokens
Learn about native tokens and their role in blockchain ecosystems.
A native token in a blockchain running the Ethereum Virtual Machine (EVM) refers to the primary digital currency or cryptocurrency native to that blockchain. Native tokens act as the foundation for value transfer and network operation within their respective ecosystems.
- Ethereum: ETH
- Avalanche C-Chain: AVAX
- Dexalot: ALOT
- many more...
The Role of Native Tokens
Native tokens serve multiple key roles within EVM-based blockchain networks, such as:
- Value Transfer: Native tokens act as the primary currency for peer-to-peer transactions within the network, enabling value exchange between participants.
- Gas Fees: Native tokens are used as gas to pay for transaction fees, contract deployments, and other network operations. This ensures that resources are allocated efficiently within the network.
- Security: In Proof-of-Stake (PoS) networks, native tokens are often used for staking to secure the network and validate transactions.
- Governance: In some cases, native tokens grant holders governance rights, allowing them to participate in decision-making processes that shape the blockchain’s future.
Native tokens are the backbone of blockchain ecosystems, serving multiple roles that maintain the network's stability, security, and functionality.
