Application Tokens – Definition
Application Tokens are "tokens that are native to decentralized applications and have a cryptographic asset associated with their use or monetization, without locking value in its parent protocol.", as defined by the Brave New Coin's General Taxonomy.
They are the third of the four types of crypto assets.
Application Tokens in plain English
You may have heard the term "dapps", decentralised applications. Application Tokens are used in various ways in such decentralised applications, e.g. you can pay with them inside of a certain website, but also exchange them back into currency on an exchange.
Examples of Application Tokens
The following ten crypto assets are considered Application Tokens, among others:
For more examples, see the following illustration: