Deep Dive
1. Layer One Launch (16 September 2025)
Overview: XYO migrated to its own Layer One blockchain, designed for high-throughput data applications like AI and logistics. The upgrade includes protocol-level optimizations for real-time data validation.
Key technical additions include Lookback Window (reduces historical data storage strain), Step Hash (accelerates block verification), and Proof of Perfect consensus (balances decentralization with efficiency). The chain supports cross-chain bridging and burns $XL1 tokens from transaction fees to curb inflation.
What this means: This is bullish for XYO because it positions the network as a scalable infrastructure for DePIN and AI use cases. Users benefit from faster, cheaper transactions, while stakers gain rewards from network activity. (Source)
2. Dual-Token Model (16 September 2025)
Overview: The codebase now enforces a dual-token system: $XYO (fixed supply, governance) and $XL1 (gas/utility). Staking $XYO earns $XL1, locking ~40% of circulating supply long-term.
Developers implemented smart contracts to automate staking rewards and burns. For example, 30% of $XL1 gas fees are destroyed per transaction, creating deflationary pressure. Early stakers receive higher $XL1 emissions, incentivizing participation.
What this means: This is neutral-to-bullish for XYO. While reducing $XYO’s liquidity could increase scarcity, success depends on sustained demand for $XL1-driven services like DePIN node operations. (Source)
3. Gitbook Documentation (15 July 2025)
Overview: XYO released its Layer One technical documentation, detailing node setup, staking workflows, and API integrations. Updates included beta testnet guides and validator requirements.
The Gitbook clarified parameters like minimum staking amounts (10,000 $XYO) and slashing conditions (e.g., penalties for offline validators). Later revisions added RPC endpoint specifications for developers.
What this means: This is bullish for XYO because transparent documentation lowers barriers for developers and validators, fostering ecosystem growth. Improved clarity reduces operational risks for node operators. (Source)
Conclusion
XYO’s codebase evolution centers on its data-first Layer One, dual-token economics, and developer-friendly documentation—key steps toward becoming a DePIN and AI infrastructure backbone. Will accelerated adoption of its new chain translate into sustained demand for $XL1?