Tokendepends

Tokendepends is a conceptual framework used in token economies to describe and manage the dependencies that can exist between digital tokens. In this model, the existence, behavior, or value of a given token can be contingent on one or more other tokens, on-chain data, or external conditions. Dependencies can influence minting, burning, transferability, pricing, governance rights, or composite utility.

Implementation often involves a dependency graph, where tokens are nodes connected by directed edges indicating a dependency. Edges may be unconditional or conditional, and smart contracts enforce the relationships, such as minting only when required components are present or adjusting supply when a dependent parameter changes. Some designs separate the dependency logic into a manifest or oracle-based layer to reduce on-chain complexity.

Common patterns include composite tokens that derive utility from underlying assets; wrapped or staked tokens that require underlying tokens for redemption; date- or event-based dependencies; and cross-token dependencies across protocols. Examples include an index token whose value tracks a basket of assets, a governance token that yields more voting power if a related token reaches a threshold, or a game item token that unlocks features only with possession of another token.

Design considerations include avoiding circular dependencies, ensuring deterministic behavior, handling migrations and versioning, and providing clear failure modes. Security risk includes cascade failures, where a problem with one token affects dependents. Practices such as explicit dependency manifests, versioned interfaces, and audit trails are recommended.

Tokendepends is used in decentralized finance, gaming, and synthetic asset platforms to model complex relationships between assets. Standards may evolve to define interoperable dependency declarations, enabling tooling for analysis and verification.