# Token

> A unit of value created on top of an existing blockchain like Ethereum.

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Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A token is an asset that lives inside a smart contract on an existing blockchain. Anyone can create one, and tokens can stand for almost anything: a stablecoin, a share of voting power in a project, a loyalty point, or ownership of a digital item.

Unlike a coin such as Bitcoin or Ether, a token does not have its own blockchain. It rides on the security of the chain it lives on.

## Related terms

- [Smart Contract](https://fudfomo.co/glossary/smart-contract): A program that runs on a blockchain and does what it says, automatically.
- [Stablecoin](https://fudfomo.co/glossary/stablecoin): A token designed to hold the same value as a regular currency, usually the US dollar.
- [NFT](https://fudfomo.co/glossary/nft): A token that represents ownership of a unique item, like a piece of digital art or a ticket.
- [Tokenomics](https://fudfomo.co/glossary/tokenomics): The economic design of a token: total supply, how it is distributed, and how it changes over time.

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