Multiversx: EGLD and ESDT Tokens
Updated ·
EGLD is the native network asset of the MultiversX blockchain. ESDT is its built-in token standard, allowing issuers to create other assets for payments and applications.
- Network asset
- EGLD pays gas fees, supports network security through staking and enables voting on network upgrades for owners who stake it.
- Token standard
- ESDT supports issuing and transferring tokens within the blockchain protocol for payments, applications and digital assets.
- Asset formats
- The protocol supports fungible, semi-fungible and non-fungible tokens.
An asset and a token standard
EGLD names a specific asset with a role in the network's operation. ESDT describes how other tokens are represented and transferred through the protocol. Several separately issued assets can follow that standard without becoming the same asset.
A fungible ESDT token can be used for payments within an application that accepts that particular asset. Its balance measures that token, while an EGLD balance measures the native network asset.
Network fees, staking and governance
Gas measures the work required to process a transaction. When the sender pays for an ESDT transfer, the transfer amount is denominated in the issued token and gas is paid in EGLD.
EGLD staking rewards vary with network participation and governance decisions. An ESDT balance alone establishes neither an EGLD stake nor the network voting rights that come with staking EGLD.
A token balance after a transfer
Consider a hypothetical direct transfer on MultiversX mainnet: the sender holds 248 units of a fungible ESDT token and transfers 38 units. Assume the sender has enough EGLD and pays the network fee.
If the transfer completes successfully without other token movements, the remaining token balance is
248 - 38 = 210
units. The transaction fee reduces the sender's EGLD balance separately.
The remaining 210 tokens do not establish how much EGLD is available for another transaction or for staking. The fee amount requires its own transaction information; this example does not assume a fixed EGLD charge.
Wallet support and asset meaning
The MultiversX DeFi Wallet extension supports EGLD, ESDT tokens and NFTs within the same interface. Its support for these formats does not establish a particular token's market price or acceptance by an application. Those questions depend on the individual asset and the application's own requirements.