What is Smart Token?

Smart tokens are cryptocurrencies that can be programmed with a near-infinite range of parameters. The purpose of a smart token depends on the specific parameters it was programmed with, with some smart tokens used to help reduce liquidity risk, improve security measures, or shape consumer behavior. For instance, a smart token can be programmed to dynamically adjust its value in accordance with a Constant Reserve Rate (CRR) pegged to a different base currency, programmed to work only with certain vendors or when purchasing certain items, or designed to expire after a set amount of time. The Bancor Network's Bancor token, released in June 2017, is widely recognized as the world's first smart token.