Cardano Native Token

Overview

Cardano’s multi-asset ledger supports assets as first-class values inside UTXOs. A transaction output can contain ADA and several token types at the same time, and the ledger enforces quantity accounting.

Minting and burning are controlled by a minting policy. The policy can require signatures, time limits, script conditions, or other rules. If the policy remains open, additional supply can be created later. A locked policy can make supply effectively fixed.

Asset identity combines the policy ID and asset name. Names and tickers are not unique, so wallets and payment systems should never trust display metadata alone. A counterfeit asset can copy a familiar name while using another policy.

ADA is still needed for fees and for the minimum value associated with outputs. A user can hold native tokens but lack enough ADA to move them. UTXO selection must preserve all assets contained in consumed outputs and create correct change.

Metadata standards can describe symbols, decimals, images, and issuer information, but metadata can be mutable or unavailable depending on the method. The ledger guarantees quantities, not off-chain claims or media.

Cardano native tokens avoid many contract-level transfer bugs common to custom token implementations, yet issuer authority, policy logic, liquidity, and legal meaning remain asset-specific.

Token decimals are metadata rather than a ledger-enforced display rule. Applications must store raw integer quantities and use the verified policy and asset name for formatting. If metadata changes or disappears, accounting should still reconstruct exact holdings and transfers from canonical transaction data. Policy scripts should be reviewed before acceptance.

Cardano Native Token, Native Token, and Cardano (ADA) may appear in the same workflow. Every component connected to Cardano Native Token should therefore be validated independently so a related asset or mechanism is not credited as the intended token.