Protocol asset

A protocol asset is a digital asset that serves as a fundamental building block or infrastructure component within a blockchain protocol or decentralized system. These assets often have utility beyond simple value storage, providing functionality that other applications and services can build upon. Tokenized domains function as protocol assets by serving as identity layers, namespace systems, and integration points for Web3 applications. They provide utility to the broader ecosystem while being composable with other protocols. For example, a tokenized domain might serve as collateral in DeFi, identity in social protocols, and naming in wallet systems—making it a multi-functional protocol asset.