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What is the XTZ token used for?

How the XTZ token is used. Tezos is a self-amending proof of stake smart contract blockchain.

XTZ token

XTZ is the native token of the Tezos blockchain.

XTZ token is used for

  • Staking and delegating for Proof of stake
  • Network fees

What is Tezos?

Tezos is a self-amending proof of stake smart contract blockchain.

Governance

Tezos has a focus on on-chain governance. The protocol can upgrade without the need of a hardfork.

There’s currently a proposal to upgrade:

  • Finality
  • XTZ to tzBTC liquidity staking
  • Gasfee

View current and previous protocol upgrades here.

Tezos Proof of stake

  • The validators are called bakers.
  • Bakers put up a bond of atleast 8 000 XTZ (roll) to validate the chain and get block rewards.
  • Users can stake and delegate their tokens to bakers.
  • Bakers choose a fee for baking and distributing rewards

Users

  • Users can stake their tokens and delegate to a baker of their choice. And receive part of the block rewards.

Tezos uses Michelson programming language and is not built on the Ethereum Virtual Machine like many other smart contract chains.

The chain is currently in the process of building out NFT, DeFi products and easy gateways to wrapping and bridging to Bitcoin.

XTZ Tokenomics

Current supply: 837,814,982 

Inflation: 3.6% Not capped supply.

Distribution

  • 608M (79.5%) – Presale investors
  • 3.15M (0.5%) – Donors
  • 76.3M (10%) – Foundation
  • 76.3M (10%) – DLS

Presale: ~$0.1 – 0.2 per XTZ

(5000 XTZ = 1 BTC July 2017)

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XTZ Token price

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