Token's availability, status and use are affected by context
TokenLayer allows Token Actions to be defined and performed based on the context. Depending on the situation an available Action changes or a new Action becomes available.
For an example, take American Express Travel Credit Token. Instead of launching a web application called American Express Travel, where the user is able to choose a hotel and spend such travel credit, a Token Layer allows the user to go to book a hotel in any hotel booking website that supports the use of such a token, and pay with the credit at the checkout. Only if the user has enough Credit Token the option to checkout with them becomes available.
Similarly, though a Token can be associated with a specific time, location or environment. For example, an airline passenger is able to swipe open the turnstile at the airport check-in without having to open his Airline mobile app first, as the use of such a token (boarding pass) is associated with the right context. A TokenLayer implementation like TokenScript allows the tokens to be associated with context by declaration or authorisation, instead of having each token running a process on user's device.
Another context can be the presence of multiple token. Let's say you have a DAI token to pay at the checkout, but you also have a subscription token for the local fishermen's club. Since the fishermen's club has an agreement with a fishing shop, you can collect points when you checkout while having the club membership token in your wallet. You might also need a boat insurance token to turn on the engine of the club's fishing boat with your club membership token.