Contract in #RSM
#RSM (#Runes State Machine) is a Programmable Runes solution with Contract. In #RSM, the Contract is a standard that describes the states and state transition functions of the token.

The token is an instance created after a Contract is deployed to the #Bitcoin network, with the complex computing capabilities and states defined in the Contract.

The computing capabilities of a token are described by the state transition functions in the Contract. 
Without adding child tokens, a token cannot have computing capabilities not described in the Contract. 
The added child tokens can only have the computing capabilities of the implemented Contract too. Otherwise, the public indexers cannot verify the states of the token, resulting in the states inconsistency. 
Token is called Rune in Runes protocol. In RSM, the token that implements the Contract can also be called application. Application is essentially a token with computing capabilities and states.