Entry: Tokens: Elgar Encyclopedia of Cryptocurrencies, Blockchain and DLT

The next generation of tokens—from their early physical forms to digital and now crypto tokens—reflects a novel socio‑technical change based on underlying ecosystems, allowing a reciprocal relationship between crypto tokens and the token system to emerge. We define a token (including a sign or symbol) as an object through which information is recorded. Accordingly, we define crypto tokens as digital tokens bound to and situated within a cryptographically secured DLT system, which forms the foundation of the token economy (tokenomics). As such, crypto tokens and their ecosystems enable value creation and capture by guaranteeing digital ownership, allowing transferability, and supporting representation within the DLT system.