What is XL1 (XL1)?

Quick Facts

  • Native token of the XYO Layer One blockchain
  • Used for gas fees, validator rewards, and smart contracts
  • Part of a dual-token model alongside the XYO token
  • Earned by staking XYO through the System Staking portal
  • Includes a burn mechanism: a portion of every transaction fee is permanently destroyed
  • Built to support DePIN, AI, and data-heavy applications
  • Launched in 2025 by the XYO team

Introduction

XL1 is the native utility and gas token of XYO Layer One, a purpose-built blockchain designed for data-intensive industries. While the broader XYO ecosystem has operated for years, XL1 represents a new layer of infrastructure — one focused entirely on operational throughput and everyday network activity.

It powers every interaction on the XYO Layer One chain, from simple transfers to complex smart contract calls, making it the functional backbone of the network.

History & Background

XYO was originally introduced in 2018 as a geospatial DePIN (Decentralized Physical Infrastructure Network) project. Over the years, it grew into one of the largest DePINs in the world, with more than 10 million nodes globally.

After more than seven years of operation, the XYO team determined that no existing blockchain could meet their need for a high-efficiency, data-focused network. This led to the creation of XYO Layer One and its accompanying token, XL1, which launched in 2025.

How XL1 Works

XL1 functions as the operational currency of XYO Layer One. Every action on the chain — transfers, smart contract executions, and data verifications — is paid for in XL1.

Validators are rewarded in XL1 for processing transactions and securing the network. A burn mechanism destroys a portion of each transaction fee, providing a natural counterbalance to new token issuance over time.

XYO holders can stake their tokens through the System Staking portal to earn XL1 without running a validator node. Early stakers benefit from higher emissions, with rewards tapering gradually as the network matures.

Tokenomics

XL1 operates within a dual-token model alongside the original XYO token. XYO handles governance and staking, while XL1 manages gas and operational activity on the chain.

The distribution model reserves the majority of tokens for community rewards and emissions. Team and early investor allocations are subject to extended vesting periods. The built-in burn mechanism helps regulate supply growth, particularly during high-activity periods.

Circulating Supply ? 18.00 billion XL1
Total supply ? 18.00 billion XL1
Max supply ? -- XL1
Updated 15h ago

Ecosystem & Use Cases

XYO Layer One is built for data-heavy industries such as AI, logistics, geospatial services, and IoT. XL1 is the token that makes these applications run.

Developers can build decentralized applications on XYO Layer One that rely on verified real-world data feeds. Use cases include supply chain tracking, location-based services, AI model training, and machine-to-machine communication.

Team, Governance & Community

XYO Layer One is developed by XY Labs, the company behind the XYO Network. Co-founders Arie Trouw (CEO and CTO) and Markus Levin originally built XYO in 2018.

Governance of the broader ecosystem is managed through the XYO token, while certain network parameters — such as reward weights and burn ratios — may evolve through governance as the ecosystem grows. The XYO community is active across Twitter/X, Reddit, Telegram, and Discord.

Advantages

  • Established ecosystem: XL1 inherits XYO's network of over 10 million nodes from day one
  • Real-world utility: purpose-built for data validation, AI, and DePIN applications
  • Deflationary pressure: built-in burn mechanism reduces supply growth over time
  • Accessible staking: XYO holders can earn XL1 without running a validator node
  • Dual-token clarity: separates operational demand from governance, reducing token use conflicts

Risks & Challenges

  • Early-stage network: XL1 launched in 2025 and faces typical adoption hurdles of a new blockchain
  • Token emissions: high early emissions for stakers could create sell pressure as rewards taper
  • Developer adoption: long-term utility depends on builders choosing XYO Layer One over established chains
  • Competitive landscape: the DePIN and data blockchain space is increasingly crowded
  • Ecosystem dependency: XL1's demand is closely tied to the growth of XYO's broader network

Long-Term Vision

XYO's ambition for XL1 is to make XYO Layer One the go-to blockchain for real-world data verification. As AI models, RWA platforms, and IoT systems demand more trustworthy data infrastructure, the team believes a specialized, high-throughput chain will become essential.

By linking XL1 utility to actual network usage — and connecting it to the long-established XYO ecosystem — the project aims to build durable, fundamental demand for the token as the data economy continues to expand.

Frequently Asked Questions

XL1 is the gas and utility token of XYO Layer One. It is used to pay transaction fees, reward validators, and power smart contracts on the chain.

XYO handles governance and staking within the broader ecosystem, while XL1 covers gas fees and operational activity on XYO Layer One. Together they form a dual-token model that separates governance from everyday utility.

You can earn XL1 by staking XYO tokens through the System Staking portal at xyo.network/staking. No validator node is required, and rewards come from block earnings.

A portion of every transaction fee paid in XL1 is permanently destroyed. This reduces net token issuance over time, particularly during periods of high network activity.

XYO Layer One is designed for data-heavy industries including artificial intelligence, logistics, supply chain tracking, geospatial services, and IoT applications.

XL1 and XYO Layer One were built by XY Labs, the company co-founded by Arie Trouw and Markus Levin in 2018. The project originally launched as a geospatial DePIN before expanding into a full Layer One blockchain.

XYO token holders can stake their tokens in the System Staking pool to earn XL1 rewards. Early participants receive higher emissions, with rewards gradually decreasing as the network matures.

XYO Layer One is specifically designed to handle large volumes of real-world data with low latency, and it launches with an existing network of over 10 million nodes. This gives it an infrastructure advantage over most new Layer One blockchains.