A pretty foundational logic gap that you can't develop a design system that isn't built upon function-based organization. Let me decide how I want to manage my colors instead of assuming for me. It's also incredibly frustrating that every competitor software and all other Adobe programs allow you to work this way, but for some reason XD is different.

It's really unfortunate that my team is handcuffed to Illustrator because XD can't do so many basic things that designers need and we can't realistically buy licenses for other software for the whole team on top of CC.

You can consider the following case to find out how much it is annoying. I want to have two colors: 'Text on secondary' and 'Text on surface'. Currently, I have a light theme with a light secondary color, so both of these assets are black. But after a while, we may decide to change our color theme in which our text on secondary color would be white.
Colors will be totally mixed up just because those have been merged.

Please consider implementing this. It's a huge pain for us at the moment. I would love to be able to define colour assets by function (background, dark background, button, dark button, header, dark header, etc.) but in some cases I use the same colour for different functions. It's not possible to achieve this with the current implementation.

It's also a problem for defining light/dark mode colours. I could define a colour (Blue) and a dark mode equivalent (Blue Dark), but it's not always the case that everything that uses blue in light mode will use the equivalent dark blue in dark mode. Different elements may need a different treatment, and it becomes messy to keep track of this and communicate to developers.

This is a real pain for us too. Can anyone from Adobe provide feedback please?

It's September 2019 and this issue is still not resolved. Anyone at Adobe looking here?
I'm currently working on a project where I have hundreds of colors for some elements (each element has multiple states and children that also have states)

Now I'm creating the assets palette and I have to play the 5000 shades of grey in order to be able to create a colour asset for each state. then, If after I apply them if I change a colour and mistakenly matches an existing #hex in the assets panel, it destroys one of them.

Any hope of getting this fixed?

I've also been annoyed by this on numerous occasions. If I'm making mockups for a fickle customer and need to be able to change the colour of some elements but not others that have the same original colour, it's a tedious task and the "slightly different colour" option is sloppy and shouldn't be relied upon.

XD Version 20.2.12.1
Windows 10 Version 1809 (OS Build 17763.615)

I often name colors based on their "element" role in a design; for example, banner text foreground, menu background, etc.

This enables me to change element or similar colors "on the fly" to test out different designs. (Similar to having styles)

As the "Color Asset" management paradigm exists now, you can only have *one* instance of a color, so if I want to replace, say banner text (which is white) with orange, and select "highlight on canvas" and then "edit" the color, *all* white text gets replaced, a nasty side effect for a large project.

I understand the concept of a color palette for a project, but it sure would be nice to be able to treat *each* color as a truly individual color rather than simply part of a global palette (no duplicates)...

Yes, there is the workaround of using "slightly" varying colors, but that is a crutch, not a solution for true design.

I'm unable to store two identical colors or typeface assets in my assets panel, the + icon gets grayed out. I presume this is a bug cause it is obvious why we need to be able to store several assets that carry identical properties. In many cases one color can carry different applications, a border color could be a border on buttons but also the background color another place in the UI. We should be able to add as many identical color assets as we want due to this so the developers and other receiving shared files can read the text in the assets panel and learn how to apply etc.

Totally agree. This is annoying.
We got a huge white label project with many different customers. All got the same XD file with a bunch of predefined color codes they can customize.
The user might even not recognise that he lost color names if he selects the same value.
Why can´t this be up to the user?