Crypto glossary
Native token (native coin)
A native token is a blockchain's built-in base asset, such as ETH or SOL, used to pay fees and reward the miners or validators securing the network.
Every public blockchain has one asset defined by the protocol itself rather than by a smart contract: BTC on Bitcoin, ETH on Ethereum, SOL on Solana. It is created through block rewards or at genesis, its balance is tracked directly in the ledger, and it is the currency in which fees are paid. On proof-of-stake chains it is also what validators lock up as collateral.
Everything else on the chain, from stablecoins to governance tokens, is usually issued on top through a token standard and depends on the native token for gas. That makes demand for blockspace a direct source of demand for the native asset, and it is why wallets need a small balance of it even to move other tokens.
Layer-2 networks blur the picture: many use ETH for fees while also issuing a separate governance token. Users frequently get stuck holding tokens with no native coin to pay fees. The native asset may also carry inflation from staking rewards, offset or not by fee burning.
Example
A user receives 500 USDC on Arbitrum but cannot move it because their wallet holds no ETH, the token used to pay fees on that network.
Related terms
Latest articles on Native token
- Space Announces Public Sale of its Native Token, $SPACE
- Stable Mainnet Debuts, Introducing Native Token and USDT-Based Transaction Costs
- BitGo Expands Institutional Custody With Support for Canton Network’s Native Token
- Polymarket Sparks Speculation on Native Token After Cryptic Message
- This Could Be Huge! Base Creator Confirms Early-Stage Discussions About a Native Token