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So crowns are part of the royal representation.
That's it. I thought it will be longer, but this is enough.
The Hungarian Holy Crown was a coronation crown, it was for anointing the new king. It is kinda special snowflake among these because it is represented more than a tool, it represented the country and the will of the "noble nation". Also probably the House of Árpád especially the Habsburgs (with the exception of Josef II) put emphasis on the fact that they were crowned by the Holy Crown, during the feast of the coronation the Crown was placed next to the king so the participants could see that they were crowned by it and they are the continuation of the Árpáds (on the female line).
A doctrine was formed around the Holy Crown during the centuries, mostly a customary law, tho it partially(?) was written down in the 16th century in the Tripartitum, which supported with some legal considerations both for the king and the nobles, clergy in the matters of the country. For example no new law drafted by the new king was considered legal and in effect until he was crowned with the Crown and in certain circumstances while Hungarian kingship was inherited, the new king was elected first by the estates, the "noble nation", and only after this could be crowned, sometimes coronations weren't legal according to the doctrine so they had to be repeated, some of our kings were only elected kings, because proper coronation weren't possible for them. They new laws had to be confirmed after the coronation.