Tokens often get called digital coins and are created on existing blockchains. In fact, thanks to the creation and facilitation of smart contracts, the most common blockchain token platform is Ethereum. Tokens that are built on the Ethereum platform are known as ERC-20 tokens.

How Tokens are Created

It does need the developer to spend some of the native coin to the blockchain the token is being created on, though. For example, if the token is being created on Ethereum, the creator will need to spend some Ether to get the network’s miners to validate the token transaction (creation).
It’s important to remember that fees need to be paid for all token transactions on a blockchain, not just the creation of the token. Therefore, any application built on Ethereum must use Ether coins to transfer the application- specific tokens from one user to another or between the app and the user.