It is recommend to uses for your base denomination to maintain parity with Ethereum. There are two types of assets to consider on a Cosmos EVM-based chain:
Cosmos tokens issued by the x/bank module
Ethereum-typed tokens, e.g. ERC-20, issued by the EVM
Accounts can own Cosmos coins in their balance, which are used for operations with other Cosmos and transactions. Examples of these are using the coins for staking, IBC transfers, governance deposits and EVM.
Cosmos EVM is compatible with ERC20 tokens and other non-fungible token standards (EIP721, EIP1155) that are natively supported by the EVM.
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