Token decimals refer to the number of digits that can appear after the decimal point in a token’s total supply. This allows for fractional ownership of tokens, enabling transactions involving small amounts. For instance, if a token has 18 decimals, it means that the smallest amount you can own or transact is (0.000000000000000001) of that token.
Decimals are essential for facilitating microtransactions and for making tokens more accessible, especially in situations where high-value tokens may not be practical for everyday use. It allows users to send very small portions of a token without needing to round up to whole numbers, ensuring precision in trading and exchanges.
Different tokens may have different decimal configurations based on their intended use, with some allowing more decimals for granular transactions while others may limit them. This flexibility can influence how users interact with the token and its overall utility.
