A token is a digital asset issued on a blockchain, often on a host network like Ethereum or Solana. Unlike a coin (which powers its own chain), a token is a smart contract with rules: a use, a supply, sometimes votes. Kinds of tokens Utility tokens unlock a project's services; governance tokens carry voting rights; security-like tokens are regulated investments; stablecoins and NFTs are tokens too. Most are created via a standard like ERC-20. Why token design matters A token's emission schedule, lockups, and distribution decide how decentralized — and how honest — its market is. Analysts read tokenomics as the incentive blueprint of an entire ecosystem. Related terms Cryptocurrency, Governance Token, Airdrop, Smart Contract, Stablecoin
A token is a digital asset issued on a blockchain, often on a host network like Ethereum or Solana. Unlike a coin (which powers its own chain), a token is a smart contract with rules: a use, a supply, sometimes votes.
Kinds of tokens
Utility tokens unlock a project’s services; governance tokens carry voting rights; security-like tokens are regulated investments; stablecoins and NFTs are tokens too. Most are created via a standard like ERC-20.
Why token design matters
A token’s emission schedule, lockups, and distribution decide how decentralized — and how honest — its market is. Analysts read tokenomics as the incentive blueprint of an entire ecosystem.
Related terms
Cryptocurrency, Governance Token, Airdrop, Smart Contract, Stablecoin