Definition
A native token is an asset integral to a particular network’s design rather than merely a representation imported from another system. Native coin is also commonly used for a blockchain’s built-in cryptocurrency. Terminology varies, so the relevant protocol and function should always be identified.
How It Functions
A network may require its native asset to pay execution fees, reward block production or secure proof-of-stake participation. Its issuance and accounting follow the network’s rules. A smart-contract token transferred on that network may still require the native asset for fees, even when the token itself represents another currency or claim.
Key Considerations
Native status does not automatically provide governance rights or make an asset safer than an application token. A wrapped representation on another chain can have additional contract, custody or bridge risks. Wallets and platforms may use the same ticker across different networks, so users should check the exact asset and route. Fee requirements, supply rules and security assumptions matter more than the word native alone.