Smart Contracts
Beginner
Updated 11/26/2025
What is
Native Tokens?
First-class tokens on Ergo that exist at the protocol level without requiring smart contracts, enabling efficient multi-asset transactions.
Native tokens in Ergo are first-class citizens of the protocol, stored directly in boxes alongside ERG. Unlike Ethereum's ERC-20 tokens (which require smart contract calls), Ergo tokens are handled at the base layer. This makes transfers cheaper, more efficient, and enables atomic multi-asset transactions.
Key Points
- Tokens stored directly in boxes (UTXOs)
- No smart contract needed for basic transfers
- Up to 255 different tokens per box
- Atomic multi-asset transactions
- Lower fees than contract-based tokens
- NFTs are native tokens with quantity 1
Use Cases
1
Creating fungible tokens (like stablecoins)
2
Minting NFTs and collectibles
3
Multi-asset DeFi protocols
4
Efficient token airdrops
5
Tokenized real-world assets
Technical Details
Native tokens are stored in register R2 of Ergo boxes. Each box can hold up to 255 different token types. Token IDs are derived from the box ID of the minting transaction, ensuring uniqueness. Tokens can have metadata stored in additional registers.
Related Infographics
Frequently Asked Questions
Questions about Native Tokens
Common questions about this topic
How to build DeFi on Ergo?
Building DeFi on Ergo starts with understanding the eUTXO model and ErgoScript. Unlike account-based chains, Ergo's box model provides deterministic execution, no MEV by design, and predictable gas costs. Use Oracle Pools for price feeds, and leverage existing patterns from Spectrum Finance and SigmaUSD.
How-to
DeFi
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
How do NFTs work on Ergo?
Ergo NFTs are native tokens with quantity of 1, making each unique. Unlike Ethereum where NFTs need smart contracts, Ergo NFTs are first-class protocol citizens. Mint for minimal fees (~0.001 ERG), trade on SkyHarbor marketplace, and enjoy full eUTXO security. NFTs can include rich metadata and royalties.
Explainer
Technology
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started