Native tokens are tokens which are developed by decentralized apps (DApps) or protocols such as decentralized exchanges (DEXs) and crypto lending platforms. Their main purpose is to give its holders voting rights to help shape the future of the protocol. Native token holders can influence decisions concerning the project such as proposing or deciding on new feature proposals and even changing the governance system itself. Native tokens are also known as governance tokens.
There are also non-native tokens, which include all tokens that are not the native token of a DApp. For example, decentralized exchange Pancakeswap often rewards its investors via its Syruppools with tokens from other protocols, for example AMPLE. Because Pancakeswap’s native token (governance token) is the CAKE token, the AMPLE token is a non native token to Pancakeswap.