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Add your color, spacing and type tokens, name each variable, and copy the :root custom-property block.
Reusable values declared like --primary: #3B82F6 and used with var(--primary), so you change a value in one place.
Declaring variables on :root makes them global, available to every selector across the whole document.
Yes — they cascade and can be overridden per selector or updated with JavaScript for theming.