# Token

The AMKT Token represents a basket of cryptoassets designed to track the market capitalization of the cryptoasset market. AMKT is the first of a new class of indexes deployed onchain.

Each AMKT token is backed by a proportional tranche of assets held in the smart contract. The token is designed to be mintable & redeemable, fully backed, and transparent.

AMKT is constructed by a network of participants who mint or burn tokens by depositing collateral into a vault smart contract. This gives AMKT some special features such as:

* **Full Collateralization** - Each token is backed by the constituents the token represents.
* **Mintable -** Each token can be minted by providing the index's constituents.
* **Redeemable** - Each token can be redeemed for the index's constituents.
* **Programmability** - Tokens are distributed as ERC20 tokens, making them fully composable with DeFi applications.