How does Kaspa support native tokens without a separate protocol layer?

Kaspa's Covenant IDs allow fungible and non-fungible tokens to enforce their own rules directly within the UTXO model, creating a native token layer without bolting on a separate protocol. A UTXO (unspent transaction output) is the basic unit of value in Kaspa — think of it as a digital coin with a lock on it. Covenant-constrained UTXOs go further: they carry token rules that must be satisfied every time the coin is spent, so the token logic is baked into the base layer itself. Many other blockchains add tokens through a separate smart-contract layer sitting on top of the main chain, which introduces extra complexity and additional points of failure. For a beginner, this means Kaspa tokens are enforced closer to the network's core security layer, with fewer moving parts between your coins and the rules that protect them.