# Overview ## Designed for Data. Built for Truth. XYO is building the future of data: a decentralized infrastructure network where data becomes trusted and real-world activity gains provable certainty. As a global DePIN with over 10 million node installs and billions of data points verified, XYO is redefining how the digital and physical worlds connect. Our protocol does more than just bridge Web3 and reality. XYO captures, verifies, and immutably proves real-world events, from the movement of assets to the presence of people and devices, unlocking next-generation applications in supply chains, real-world gaming, insurance, tokenized real-world assets (RWA), and more.
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About XYO/pages/1XfTF5KeTEH8BnBY7dQX/pages/HnAaCpwLyt2yvnFgUSG2/pages/cKuQ5CrlkxnmJDMIGINA/files/muMPz1cayeGzqUf9CBNR
XYO Layer One/pages/Y5EKihNlY5f4MdHXpmD2/pages/zlDMt1Tu9LcfIiL5I4Bc/pages/uxBjvMvaeuJ7QIQNMbyK/files/Sbqng0cempai5DRKj9a6
Tokenomics/pages/k8Inu463K0128iMEeZh6/pages/cu9orsfKJyuE7ktI8Aie/pages/xngGXMN9QaHCQA7QlxTr/files/8pfntXiZioVHTr4gwcyJ
DePIN Nodes/pages/ZMj2Pf3A99dIqZL7Zn3B/pages/zttid7gOe7dACaDWcpn2/pages/uOCaS6PcThPqTIGipjFW/files/EtVwyf1W277kjoyWBQHt
#### XYO Layer One **At the heart of this transformation is XYO Layer One, a blockchain for scale, speed, and sovereignty.** With our dual-token system and XL1 Wallet, developers and users can seamlessly interact with a permissionless ecosystem optimized for permanent data validation and Proof of Location. Whether you’re launching a dApp, verifying a delivery, securing AI data inputs, or building the next frontier of decentralized apps, XYO provides the trust layer the future demands. This isn’t just data on-chain. This is the operating system for the real-world internet. # Glossary **Algorithmic Proof** A mathematical or computational method used to verify the accuracy or trustworthiness of data without requiring third-party validation. **Bearer Proof** A cryptographic proof that verifies inclusion in a dataset without needing access to the entire set. It allows for secure, lightweight data ownership confirmation. **Block Reward** The amount of XL1 tokens given to a block producer for successfully generating a new block on the XYO Layer One Blockchain. **Block Validator Node** A type of XYO node that confirms the validity of new blocks before finalization. Validators are key to slashing dishonest actors and maintaining integrity. **Block Producer Node** A node that builds blocks by selecting transactions from the pending pool and producing the corresponding cryptographic payloads. **Bound Witness** A core concept in XYO’s Proof of Origin protocol, representing cryptographic validation of a data event or interaction between multiple parties. **Bound Witness Tree (BWT)** A rollup structure made up of multiple Bound Witnesses organized in a tree format. Enables fast validation by referencing a single root hash. **Byzantine Action** Malicious or faulty behavior in a distributed system that violates consensus rules—such as submitting invalid blocks. **Chain of Chains** The architecture that allows independent XYO Proof of Origin chains to unify into a shared state on the XYO Layer One Blockchain. **Efficiency Node** A supporting node that maintains reference data (e.g., balances) to speed up block validation and reduce redundant computations. **Finalization** The process by which a block is confirmed as immutable and beyond the slashing window. Ensures the chain’s state is considered reliable. **Framing Cursor** A pointer system that divides the blockchain into retrievable “frames” or segments for optimized navigation and data lookup. **Gas Fee** A fee paid in XL1 to cover the cost of executing transactions and smart contract operations on the blockchain. **Genesis Era** The initial token distribution phase for XL1. **Lookback Window** A mechanism that limits the amount of historical data nodes must actively maintain—focusing on recent transactions for scalability. **Participation Transaction** A transaction submitted by a node to prove it was actively contributing to the network, even if its actions left no visible record. **Proof of Location** An original XYO protocol validating that a specific piece of data originated from a trusted source or device. **Proof of Origin** An original XYO protocol validating that a specific piece of data originated from a trusted source or device. **Proof of Participation** A system that enables nodes to receive rewards for invisible work by allowing them to submit attestations of their activity. **Proof of Perfect (PoP)** An algorithm that ranks data points—like chain heads—by how close they are to being “perfect” in accuracy and trustworthiness. **Priority Fee** An optional XL1 fee offered to block producers to incentivize faster inclusion of a specific transaction. **Rollup** A technique that bundles multiple transactions into a single proof, reducing on-chain data load and increasing throughput. **Slashing** The penalty mechanism by which staked tokens are destroyed or reallocated due to bad behavior or protocol violations. **Smart Contract** A self-executing agreement encoded in software that runs on the blockchain and performs operations without intermediaries. **Stake / Staking** Locking tokens into the blockchain protocol to secure the network, participate in consensus, or earn rewards. **Step Hash** A structure that groups blocks into progressively larger clusters, enabling faster lookup and validation through logarithmic navigation. **Step Reward** A large-scale reward distributed at key block milestones from a shared pool, incentivizing validators and long-term contributors. **Transaction Pool** A list of unconfirmed transactions awaiting inclusion in the next block by block producers. **Zero-Knowledge Proof (ZKP)** A cryptographic method that allows verification of a claim without revealing the underlying data—used in Rollups for privacy and efficiency. # XYO Papers
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XYO White Paper/files/iuB1PI8Wv0hfxjLTYGla/files/nvT6B8zDjN438WkhgmUj
XYO Layer One White Paper/files/o2HQhP6PF0fzctYPGOM3/files/rAF8ePojwB8BRiG0EiLc
Green Paper/files/OfMpF0oTYy22wFIPXXTl/files/3yXKEMQOtyUrZ8q8ChAt
Red Paper/files/IKx4No3N1hhrk1VwVLJ7/files/KFQNXlYy5Qd1MjLiX3NP
Yellow Paper 1.0/files/fFofrflYRkZi4jjvN9IA/files/WKo5mmAe58d8jFyYKROs
# What is XYO? XYO started with a simple idea: data should be trusted, not guessed. Through the COIN app, we built a network of over 10 million nodes, showing that everyday people can help power a decentralized infrastructure. Today, XYO is a decentralized data protocol and one of the largest DePINs in the world. It connects real-world data to both Web2 and Web3, using blockchain, cryptography, and Proof of Location to prove where, when, and how events happen. This makes XYO a key layer between the digital and physical worlds, with real uses in AI, logistics, real-world assets (RWA), gaming, smart cities, and more. ### XYO Layer One Blockchain At the center of the ecosystem is XYO Layer One, a blockchain purpose-built for data. It introduces key features: * **Permanent Data Storage** – Store hashes of off-chain data with cryptographic integrity. * **Sovereign Chains** – Launch application-specific chains with complete data control. * **Bound Witness Trees** – Validate batches of data through root-hash proofs. * **Data Rollups** – Compress datasets for scalable, low-cost processing. * **Multi-Chain Interoperability** – Connect with both Web2 and Web3 systems. ### Core Technologies & Solutions XYO uses proprietary technology that runs throughout the ecosystem, making data accurate, verifiable, and traceable across both digital and physical systems. Its modular architecture and Bound Witness protocol create a strong backbone for DePIN networks, Web3 apps, and Web2 enterprises, establishing XYO as a foundation for trusted digital-physical interactions. Together, these systems create a framework for trustworthy, verifiable digital-physical interactions.
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Proof of LocationReal-time validation, anti-spoofing protection, and verifiable location data you can trust./files/ULocIMt0kc44aYbl0zB5
Ground-Truth ValidationVerify real-world user actions and enable unique interactions with your product./files/jIQGXQNhFHwdiksO1IIl
Proof of OriginConfirm where data originated, the order in which it was generated, and whether it has remained unaltered./files/EYns8O1jNF04YuR8fPCk
### Dual-Token System: XYO & XL1 XYO Layer One operates on a dual-token model that separates governance and utility: * XYO Token: A deflationary token used for staking, securing the network, and anchoring long-term trust and alignment. * XL1 Token: An inflationary (\~0.7% p.a.) utility token used for transactions, gas fees, smart contracts, and daily network operations. This design keeps the network stable, scalable, and flexible for both users and developers. ### DePIN Nodes & COIN App Through COIN, XYO’s data node app, anyone can participate by turning their smartphone into a node. These devices collect data and earn XYO in return, lowering the barrier to entry for decentralized infrastructure. * 10M+ installs worldwide * 5B+ XYO rewarded COIN is the simplest way for everyday users to join the network and contribute to a global data economy powered by XYO. # XYO 101 Data is meant to be easy. With XYO, it is. This website is your guide to understanding XYO's ecosystem, including XYO Layer One, the XYO Protocol, and XYO's dual-token system. To learn more about XYO, check out one of the chapters below.
BeginnerLearn more about blockchain bloat & XYO's Ecosystem/files/qoLpM0CignolpfoW3zBC/pages/DkVhpcJturUkmzGbau0r
IntermediateUnderstand XYO Layer One, unique token model & balanced ecosystem/files/BtFdgTIQshBcfdjo2Mat/pages/cCok8PdBHdl49Jf4qfjK
ExpertMore coming soon!
# The XYO Ecosystem Welcome to the beginning of your journey through the XYO ecosystem. This section introduces the core ideas behind XYO: what is being built, why it matters, and how to take part. ### What is DePIN? DePIN stands for Decentralized Physical Infrastructure Network. It allows people anywhere to support the network by running nodes or contributing from their devices. XYO has grown one of the largest DePINs worldwide, with over 10 million nodes and live applications.
### What is XYO Layer One? In this section, you’ll learn how XYO Layer One works as a blockchain built for data. It tackles the problem of blockchain bloat, explains its dual-token model with XYO and XL1, and shows how this design supports scalable, trusted applications across industries that depend on verifiable information. ### What is COIN? The COIN App makes it possible to join XYO without running a node. By carrying a smartphone and using the app, participants can contribute data and earn rewards You’ll learn how it works, how rewards are earned, and how it connects you to XYO’s bigger mission. # What is DePIN? And why does it matter? DePIN stands for Decentralized Physical Infrastructure Network. Instead of a few corporations owning things like cell towers or data centers, DePIN lets anyone join in. People can run devices, share data, or connect to networks and earn rewards for it. ### What Makes it Different? Traditional infrastructure is centralized: companies build it, maintain it, and capture all the value. DePIN flips that model. It makes infrastructure: * **Open:** anyone can join with a phone or device * **Resilient:** no single point of failure * **Fair:** contributors earn value for their part ### How Does It Work? Every DePIN project has three layers: 1. Devices or nodes doing useful work 2. A network that collects and validates the work 3. A system that records contributions and distributes rewards ### The XYO Approach XYO has been running a DePIN since 2018. More than 10 million nodes contribute through the COIN App, sending real-world data like timestamps, observations, and location relationships. That data is verified with Proof of Location and Proof of Origin, then secured on XYO Layer One, a blockchain built for data. Contributors earn $XYO for their participation, while $XL1 powers activity on-chain. ### How DePIN Impacts Industries DePIN builds trusted, global systems that anyone can help run. From mapping and logistics to IoT, public data, and asset tracking, XYO shows how a DePIN can connect the digital and physical worlds at scale. # What is XYO Layer One? And why does it matter? XYO Layer One is a blockchain built specifically for data. While most blockchains are designed for financial transactions, XYO Layer One focuses on handling large amounts of information—fast, efficiently, and at scale. In the XYO Ecosystem, data comes from millions of nodes that capture and verify real-world activity. From the [COIN App](/xyo-data-nodes-coin/coin) on smartphones to other devices for XYO partners, this network produces constant streams of data. A standard blockchain would slow down if it tried to process or validate all of that. XYO Layer One was created to solve that problem. At its core, XYO Layer One is where verified data becomes permanent. It is the chain that anchors information coming from nodes, applications, and services across the ecosystem. It also introduces a dual-token model: * $XYO is staked to secure the network and support governance. * $XL1 is used for transactions, gas, and activity within XYO Layer One. Together, these tokens balance security with utility, giving users and developers a stable foundation for building applications in areas like artificial intelligence, real-world assets, and other data-heavy use cases. Most blockchains struggle with “bloat,” a slowdown that happens as chains grow larger. In the next section, you’ll learn why this happens—and how XYO Layer One takes a different approach. # What is COIN? ### Introduction In the XYO ecosystem, not all data comes from on-chain transactions or complex node operations. One of the most accessible ways to contribute is by becoming an **off-chain data producer**. This role is open to anyone with a smartphone, thanks to the [COIN App](https://xyo.network/coin).
### What Is the COIN App? COIN is a free mobile app designed to allow users to contribute real-world data to XYO. When users explore the world, move around, or interact with the app, they help XYO validate information. It works by capturing two types of data — **passive and active.** * **Passive Data** comes automatically from the sensors in your device — including movement, location, altitude, and environmental signals. This kind of data is generated simply by carrying your phone as you go about your day. Because it’s abundant and relatively low-effort to produce, passive data typically earns lower rewards. * **Active Data** is created through direct human input. This includes actions like answering survey questions, taking and uploading photos, interacting with educational content, or verifying something in your physical surroundings. Because active data requires intention, time, and effort, it tends to be more unique and higher in value. Each submission reflects an individual’s decision to contribute meaningfully, which makes it well-suited for training models, confirming real-world events, and supplying valuable human context to decentralized applications. ### How Do Users Earn? As users contribute both active and passive data, they earn $COIN, an in-app currency. $COIN can be accumulated through regular participation and then redeemed for a wide variety of real-world and digital rewards. These include: * $XYO Tokens * Other popular cryptocurrencies * Physical goods * And more, depending on region and availability Earning $COIN turns everyday activity into a gamified and rewarding experience. The more you engage, the more you collect. ### Getting Started 1. [Download the COIN App](https://docs.xyo.network/) for iOS or Android 2. Create a free account and give the app permission to gather passive signals 3. Start moving, answering questions, and exploring your environment 4. Track your contributions and rewards in real time! ### How It Works Once installed, you can engage with COIN actively or passively depending on your preferences. * **Movement Tracking**: Earn by walking, driving, or traveling. COIN uses your location (with permission) to validate data as you navigate the physical world. * **Surveys and Questions**: Participate in quick, tappable questions that contribute human insight to the data network. * **Collecting and Scanning**: Explore your environment using COIN's tools to scan, claim, or verify locations and actions. * **Device and Blockchain Use**: Users can link devices or dive into blockchain to increase rewards and provide higher-quality data. # XYO Layer One Welcome to the next step in your journey through the XYO ecosystem. This section dives deeper into how XYO works under the hood — why the system was designed the way it is, and what makes it sustainable, scalable, and ready for real-world data. ### Why Did We Make XYOL1? In this page, you'll learn about the biggest issue facing large data-driven companies today: Blockchain Bloat. This problem affects industries like artificial intelligence (AI), real-world assets (RWA), and DePINs, like ourselves. The short version? Most blockchains slow down as they grow. Here, you’ll get to see why that happens and how XYO Layer One takes a data-focused approach to avoid it. ### How XYO Layer One Tackles Blockchain Bloat Instead of requiring every node to store the entire blockchain, XYO Layer One uses innovations like Lookback Windows and sovereign chains. You’ll explore how its “Chain of Chains” architecture enables fast syncing, minimal bloat, and real scalability. ### How XYO Layer One Impacts Big Industries XYO Layer One gives industries a blockchain that can actually handle their data. From AI models that need trusted inputs to DePINs like XYO that connect millions of nodes, XYO Layer One makes large-scale data usable without slowing down. XYO solves blockchain bloat by adding features like roll-ups, sovereign chains, and permanent storage. With these, it creates a foundation for logistics, healthcare, insurance, gaming, and more to build systems that stay fast and reliable as they grow. ### Two Tokens, One Ecosystem The XYO Token supports the broader DePIN economy, while the XL1 Token powers on-chain activity within XYO Layer One. You’ll see how this dual-token model separates concerns, increases performance, and creates value for both users and developers. Let’s dig in! # What is Blockchain Bloat? It's easy to ask yourself as blockchains become more popular, *Why can't \[insert blockchain] just make blocks way bigger and create new ones way faster?* **Because of Blockchain Bloat.** {% embed url="" %} ### Introducing Blockchain Bloat Blockchain bloat is the accumulation of data on a blockchain over time. Most traditional blockchains require every node to maintain a full record of all historical transactions, from the genesis block to the present. As more data is added, the blockchain becomes slower, more expensive to operate, and harder to scale. We'll use Ethereum as an example. Here's a quick look at how Ethereum's block size has increased over time:
And remember, each new block must be remembered by every node running the chain. So as the chain grows, and when blockchains see huge spikes due to new technologies (like when Decentralized Finance *\[DeFi]* and decentralized exchanges were created), the system begins to grow completely out of control. This problem affects all types of chains: Layer 1s, Layer 2s, rollups, and appchains. The growing size of the chain introduces several key challenges: * Slower block times and increased network latency * Higher computational and storage costs * Reduced accessibility for individual users and smaller developers * A growing reliance on centralized infrastructure * Greater difficulty verifying historical data integrity at scale As blockchains grow, they often become less inclusive and more difficult to maintain, shifting control toward large organizations that can afford the operational demands. ### Demand Grows, but Blockchains Can't Keep Up When you make blocks bigger and create them more often, you’re drastically increasing how much data is added to the blockchain every day. It would be adding Gigabytes, if not Terabytes, of data each day. When people need to access the data on-chain, it becomes more expensive and time-consuming to crawl through it all. Those increased expenses hit the little guys first, those wanting to earn Bitcoin from their laptop or join in on Ethereum to dabble in a completely new technology. ### Expensive, Slow, and Hard To Use! To participate in a blockchain network like Ethereum, you need to run a node, which means downloading, storing, and syncing the full chain. Right now, running an Ethereum node requires multiple terabytes of storage. Archive nodes need even more. If growth jumps, only data centers and major cloud providers would have the power, bandwidth, and storage to keep up. It's already difficult for regular users with laptops, slow Wi-Fi, or data caps. With increased data, it may become virtually impossible. ### Centralization Becomes a Problem When only a few powerful organizations can afford to run nodes, they gain control over the network. They can: * Censor transactions * Control block creation * Reorder or delay certain actions **That’s the opposite of what decentralization is supposed to achieve.** ### How XYO Layer One Solves Blockchain Bloat XYO Layer One was built to solve the problem of blockchain bloat at the architectural level. It introduces new approaches that eliminate the need to store the entire chain history for validation and consensus. Instead of making blocks bigger or producing them faster, blockchains like XYO Layer One solve the problem differently: * **Lookback Windows:** Only keep the data you need for real-time performance * **Efficient consensus:** Validate without needing the full chain history * **Chain of Chains:** Allow applications to run their own chains independently, and only sync to a main chain when they need to benefit from shared truth This keeps the system light, fast, and secure—even as data grows. # XYO Layer One And why does it matter? ### Introduction XYO Layer One is a blockchain designed from the ground up to handle real-world data at scale. It’s built on the foundation of the XYO Protocol and improves upon it by connecting individual Proof of Origin chains into a unified, shared consensus. The result is a blockchain system that respects sovereignty, supports heavy data use, and rewards meaningful participation. ### Why Traditional Blockchains Struggle As you learned earlier, nearly all blockchains today struggle with blockchain bloat. When every node has to store and track everything, this makes the system: * Slower and heavier * More expensive to run * Harder for individuals to join * Easier for big players to dominate ### How XYO Layer One Improves Blockchain Design Instead of using bulky and slow architectures like many traditional blockchains, XYO Layer One introduces a fresh design that keeps things fast, lightweight, and fair—while still being fully decentralized and verifiable. In 2018, Bound Witnesses introduced a way to verify the origin and validation of data between nodes. That approach allowed for trust at the data level but didn’t unify that data across the entire ecosystem. Now, with XYO Layer One, Bound Witnesses are **"elevated"** as data payloads into a full consensus-driven blockchain protocol. #### Payload Elevation XYO Layer One introduces a new way to promote data into permanent consensus: **Payload Elevation**. In earlier implementations of the XYO Protocol, Bound Witnesses existed between isolated nodes and chains. They offered strong guarantees of origin and integrity, but they lacked a mechanism to bring that validated data into a shared state. With Payload Elevation, XYO Layer One changes that. Data collected and signed by nodes can now be elevated into **Block Bound Witnesses**, allowing it to live permanently as part of the blockchain. This elevation is directed by scripts in **Transaction Bound Witnesses**, which define what should be elevated and under what rules. These scripts are similar in concept to Ethereum’s smart contracts. Once elevated, the payload becomes part of the current block, gaining permanency, traceability, and broader consensus. This links real-world data gathering with blockchain-level immutability—creating a seamless pipeline from data validation to shared trust. {% tabs %} {% tab title="Bound Witness Trees" %}
#### Bound Witness Trees Instead of packaging transactions in flat lists, XYO uses **Bound Witness Trees** to organize and compress data. These trees allow multiple transactions or payloads to be verified together, using minimal storage. The result is a more scalable system that handles large volumes of data without losing verifiability. {% endtab %} {% tab title="Lookback Window" %}
#### **Lookback Window** Lookback Windows limit how much of the blockchain history a node needs to reference when validating new data. Instead of scanning the entire chain, nodes in XYO Layer One only work with a recent segment of blocks. This dramatically reduces storage and computation requirements, making the network faster, more efficient, and easier to participate in—without compromising verifiability. It’s one of the key ways XYO Layer One solves blockchain bloat and keeps performance sustainable at scale. {% endtab %} {% tab title="Step Hashes" %}
#### Step Hashes Step Hashes provide a fast and elegant way to access different parts of the chain. Rather than scanning the entire blockchain, Step Hashes create shortcut points. These allow for faster lookup, verification, and indexing—especially as the chain grows. It keeps the system lightweight and responsive. {% endtab %} {% tab title="Proof of Perfect" %}
#### Proof of Perfect When data comes from many sources, it can be hard to know which one to trust. **Proof of Perfect** is a ranking mechanism that evaluates data options and determines which one is closest to ideal. It doesn't assume perfection exists—it uses comparison to find the best available version of truth. This is essential for high-integrity decentralized systems. {% endtab %} {% tab title="And More!" %}
#### And More! In addition to these core concepts, XYO Layer One includes a wide range of features like Framing Cursors, Rollups, and Bearer Proofs. Each one contributes to reducing blockchain bloat, improving participation, and enabling flexible, real-world applications. Together, these improvements make XYO Layer One a leap forward in decentralized infrastructure. It’s not just a continuation of the original vision—it’s a new foundation designed to scale and interconnect data across an open, sovereign ecosystem. {% endtab %} {% endtabs %} ### Nodes and Participation XYO Layer One is maintained by a network of different types of nodes. Each has a role in keeping the chain running smoothly and securely.
Block Producer NodesBlock Producer Nodes build new blocks from pending transactions. They are responsible for making sure the data payloads they follow the XYO Protocol. They also control what goes into each block, and then publish it to the chain./files/NW7LiJLG3Tk42NRqUdZj
Validator NodesValidator Nodes review the blocks created by producers. If something is wrong, they can propose a fix or rollback. They also submit participation proofs to show they are actively supporting the network./files/jJ58H2eZDXNgwyYgy4P5
Together, Block Producers and Validators ensure that the chain stays healthy and that only valid data is accepted. ### Rewards and Incentives Unlike many systems where rewards go only to block creators, XYO Layer One spreads incentives across different roles. #### Block Rewards These are paid to Block Producer Nodes for creating new blocks. It’s a direct reward for helping the chain move forward. #### Step Rewards Step Rewards are earned by validators and other participants over time. They come from a growing pool and are released at key milestones. The idea is to encourage long-term contribution, not just short-term mining. Together, these two systems balance immediate rewards with long-term incentives, keeping the network fair and decentralized. ### A Chain of Chains One of the most unique things about XYO Layer One is its ability to unify many independent Proof of Origin chains. In the past, each chain could only represent its own state. Now, with XYO Layer One, those chains can link together through shared Bound Witnesses and create a **collective state**. This lets different data sources remain sovereign while still joining a shared consensus. It’s a model that supports collaboration without forcing centralization. ### Applications and Use Cases Because it’s designed for high-throughput and flexible data, XYO Layer One is ideal for: * **Artificial Intelligence and Machine Learning** * **Logistics and Supply Chain** * **Finance and Retail** * **DePINs and Real World Assets (RWA)** * **Healthcare and Pharma** * **Gaming, Oracles, and Web3-native applications** ### Summary XYO Layer One combines new ideas and proven protocols to build a blockchain that’s light, fast, and ready for the future. Whether you are validating data, producing blocks, or staking your tokens, the system is designed to reward real participation and scale without compromise. If traditional blockchains are rigid highways, XYO Layer One is a flexible data mesh that adapts as it grows. # Two Tokens, One Ecosystem XYO Layer One uses a dual-token model to create a powerful, scalable blockchain ecosystem optimized for DePIN, data, and AI applications. This structure separates the foundational and transactional layers of the network, ensuring long-term sustainability without compromising speed or usability. The two tokens—$XYO and $XL1—each serve a distinct purpose that contributes to the health and growth of the network. $XYO is a deflationary token with a fixed supply. It is designed for [staking](/xyo-layer-one/staking) and securing the network, offering long-term value alignment and stability. Token holders who stake $XYO contribute to the structural integrity of the blockchain, reinforcing trust and decentralization across the ecosystem. $XL1, by contrast, is the utility token that powers day-to-day activity on XYO Layer One. It is described as inflationary, but this inflation is deliberately restrained. The inflation rate approaches 0.7% per year. $XL1 is used for gas [fees](/xyo-layer-one/architecture/transaction-fees), smart contract execution, real-time rewards, and other core functions of the blockchain. XL1 is effectively deflationary through active use. This design ensures that XYO Layer One maintains an economic balance, even while supporting high-throughput applications. # Build, Operate & Scale with XYO > ⚠️ This section is currently in progress. Some tools and documentation are not yet available because XYO Layer One mainnet is launching later in 2025, and core APIs and SDKs are still in development. This section is for those who are ready to go beyond understanding XYO — and start building with it. Whether you're setting up a node, launching a sovereign chain, or integrating with the XYO Protocol, this level will give you the tools and guidance to take real action. ### Where to Go Next: How-to Guides
Download XL1 Wallet/files/kRJZy7j6ZPlf4F4QkVkZ
Request Test XL1 Tokens
Run a Local Block Producer
# XYO Cheatsheet ### What is XYO? XYO is a ecosystem and protocol built to make data trusted, permanent, and valuable without relying on middlemen. It includes: * A global DePIN (Decentralized Physical Infrastructure Network) of over 10 million nodes * A Layer One blockchain optimized for real-world, data-heavy applications * A mobile app (COIN) where users contribute real-world data * Tools to validate and verify data for use in AI, logistics, games, and more ### What makes XYO different? Most blockchains are built for finance.\ XYO is built for **data**. * It’s not just about tokens. It’s about who creates data, who verifies it, and who gets rewarded. * It’s not a speculation-first protocol. It’s a utility-first network. ### Quick Concepts to Know
ConceptWhat it does / Why it matters
COIN AppMobile app that rewards users for contributing data to the XYO Network. Enables people everywhere to participate.
Proof of OriginCryptographic proof that shows where data came from without revealing personal info. Increases trust and accountability.
Proof of LocationVerifies spatial relationships between devices or events. Useful for games, infrastructure, asset tracking, and more.
XYO TokenDeflationary utility token used for staking, access, and long-term value in the XYO ecosystem.
XL1 TokenUtility token for paying gas on XYO Layer One. Powers smart contracts, rewards, and transactions.
Sovereign ChainsCustomizable, independent blockchains built on XYO Layer One. Gives users and orgs full control of their rules and data.
### XYO Stats & Ecosystem Highlights * Over **10 million** global nodes, making XYO one of the largest DePINs in the world * Used in real-world applications across AI, logistics, games, and infrastructure * Technologies like **Proof of Location** and **Proof of Origin** enable high-trust data validation * Purpose-built Layer One blockchain now live and optimized for scale ### Dual-Token Model XYO uses a two-token architecture to support its growing ecosystem: #### XYO Token * Externally traded on major exchanges including Coinbase * Supports the DePIN economy * Used for rewards, staking, and governance * Deflationary supply model to increase long-term scarcity #### XL1 Token * Native token of the XYO Layer One Blockchain * Used for gas fees, smart contract execution, and on-chain activity * Designed for performance and scalability within the Layer One network This model ensures that developers and enterprises have a seamless experience building on-chain, while also preserving long-term value and sustainability for the entire ecosystem. A major capital raise is currently underway for XL1, aimed at accelerating growth and onboarding new data-intensive applications into the network. ### Real-World Legal and Business Milestones * First U.S. crypto company qualified for a Regulation A offering by the SEC * Enables share purchases by both accredited and non-accredited investors * Tokenized and listed equity ($XYLB) on tZERO, making XY Labs a pioneer in the RWA tokenization space This blend of consumer participation, regulatory compliance, and real-world utility makes XYO uniquely positioned to grow with trust and transparency. ### TL;DR **If you can trust the data, you can trust the outcome.** Everything we build — XYO Layer One, the dual-token $XYO & $XL1 model, COIN App, and more — is built to support that mission. # Proprietary Technologies & Solutions ## Core Concepts & Solutions XYO provides decentralized technologies that validate real-world data with cryptographic certainty. From confirming user locations to authenticating data origin and verifying physical actions, XYO supplies the infrastructure for secure, data-driven applications. ### Proof of Location [Proof of Location](/about-xyo/proprietary-technologies-and-solutions/proof-of-location) brings tamper-resistant validation to industries that need trusted spatial data. Unlike traditional GPS, it uses cryptographically signed, multi-party verified data to prevent spoofing and drift. This allows platforms to confirm where a device or user actually is. ### Ground-Truth Validation [Ground-Truth Validation](/about-xyo/proprietary-technologies-and-solutions/ground-truth-validation) ensures that reported actions—such as a delivery or entry into a venue—are proven to occur. This protects against false data and strengthens networks that depend on authentic real-world inputs. DePIN networks, for instance, can rely on it to filter out spoofing and maintain integrity. ### Proof of Origin [Proof of Origin](/about-xyo/proprietary-technologies-and-solutions/proof-of-origin) secures the authenticity, sequence, and integrity of data from creation onward. It guarantees that data comes from a valid source and has not been altered. Industries like supply chains, IoT, and manufacturing use this to trace products, confirm environmental data, and prevent counterfeits. ### The Future of Verifiable Infrastructure Together, Proof of Location, Ground-Truth Validation, and Proof of Origin form a framework that connects digital systems with real-world certainty. These tools help industries build applications that require trusted, scalable, and verifiable data. # Proof of Location XYO provides a powerful and reliable business solution for verifying user location. Whether you are building apps, platforms, or services that depend on physical presence, XYO’s Proof of Location technology enables real-time validation, anti-spoofing protection, and verifiable location data you can trust. ### Anti-Spoofing and Location Accuracy Location spoofing has become a widespread challenge in mobile and web-based services. XYO’s anti-spoofing technology ensures that only verified, authentic location data is collected and used. This helps maintain the integrity of your data, reduces the risk of fraud, and protects the quality of internal decision-making systems. ### Real-Time Protection with Real-World Data XYO enables instant location validation as events happen. With real-time verification, your application can confidently confirm user presence at specific locations. This empowers you to take secure, location-based actions with confidence, whether it's unlocking access, issuing rewards, or tracking movement in sensitive environments. ### Better Data and Better Partnerships Trustworthy data builds stronger business relationships. By using XYO to supply accurate, verified location data, you enhance your value as a partner. Whether you are collaborating with advertisers, developers, or analytics firms, reliable location inputs make your data more actionable, opening new opportunities and increasing long-term confidence in your platform. ### Impact Across Industries XYO’s Proof of Location technology creates new possibilities across a range of industries, including gaming, supply chain, logistics, retail, healthcare, and more. {% tabs %} {% tab title="GameFi and Real-World Rewards" %} **Boost gameplay with real-world verification, unlocking in-game rewards for real-world actions.** Players can earn digital rewards by physically traveling to target locations, making specific purchases, or completing location-based challenges. XYO offers multiple, overlapping methods for validating location, depending on the use case and level of detail required. These activities can trigger in-game bonuses, functional NFTs, and cross-platform benefits, merging physical exploration with digital engagement. This location-based approach gives GameFi developers new ways to connect their virtual worlds to real-life behavior, enhancing immersion, engagement, and economic opportunity. {% endtab %} {% tab title="DePIN" %} **Enhance Decentralized Physical Infrastructure Networks (DePIN) by ensuring accurate, reliable location data.** DePIN projects often struggle with unreliable location data, such as 'Null Island' (0°N 0°E) entries that impact data integrity. With XYO's Proof of Location, DePIN projects can verify real device locations, filter out false data, and reduce fraud. By validating and filtering location data, XYO enables DePIN networks to maintain accurate datasets, enhancing the integrity and reliability of data-driven decisions. {% endtab %} {% tab title="Supply Chain" %} **Maintain accurate and secure location tracking within logistics and supply chains.** Once a product leaves a facility or warehouse, it can be difficult to track. By validating item locations with XYO's Proof of Location at each stage, companies minimize loss, increase accountability, and improve issue resolution when delays occur. The added security and accountability through XYO's Proof of Location is unmatched. {% endtab %} {% tab title="Event Attendance" %} **Authenticate attendance at events, conferences, or exclusive locations.** Exclusivity and rewards are key in today's event attendance. Whether a large-scale pop concert or a healthcare convention, events often want ways to reward desired behavior, and ensure no fraud occurs. Organizes partnered with XYO can use XYO's Proof of Location to confirm attendee locations, offering exclusive digital rewards to verified attendees. This setup not only reduces ticket fraud but also boosts post-event engagement through personalized content. {% endtab %} {% endtabs %} ### Three Modes of Location Validation XYO offers multiple, overlapping methods for validating location, depending on the use case and level of detail required. #### Heuristic (Real-Time) Heuristic mode provides real-time location verification using algorithms that evaluate different environmental and device inputs. It is lightweight, fast, and suited for ongoing, high-volume location requests. #### Bound Witness (Real-Time) Bound Witness mode validates interactions between multiple devices in real-time. It is ideal for scenarios where relative position and multi-party confirmation are needed, such as logistics handoffs, collaborative apps, and peer-to-peer verification. #### Advanced (Post-Processed) Advanced mode applies deeper post-processing to verify past locations with greater precision. This is useful in contexts where historical validation, auditability, or forensic-level verification is important. # Ground-Truth Validation XYO’s Ground-Truth Validation offers a powerful way to confirm that real-world user actions have truly occurred. Whether your business operates in logistics, Web3, gaming, or infrastructure, this technology enables you to verify actions with confidence, eliminate spoofing, and ensure the integrity of your data. ## Anti-spoofing and action accuracy Users can fake, or "spoof" their location data when playing games or completing digital tasks that connect to their location. When users create this kind of spoofed data, their data and the connected rewards for their digital actions are unreliable. This kind of volatility can cause false reports, cause companies to overpay users for false behaviors, and can even become more consequential when paired with high-risk situations, such as those in military or healthcare industries. XYO’s anti-spoofing technology ensures that only verified actions are recorded, protecting processes and improving overall data quality. ## Real-time validation with ground-truth data XYO validates physical-world actions as they occur. Whether a user visits a location, completes a delivery, or activates a device, the action is confirmed in real time, enabling secure and timely responses. ## Data quality and partnerships Verified data supports credibility. By using ground-truth validation, partners receive cleaner datasets that reduce disputes and support stronger collaboration. {% tabs %} {% tab title="DePIN" %} DePIN (Decentralized Physical Infrastructure Networks) often rely on location data from edge devices and users. Inaccurate data, such as default coordinate entries like Null Island or from GPS Spoofing, can reduce trust and affect outcomes. XYO’s Ground-Truth Validation allows DePIN projects to verify that device locations and user actions are real and trustworthy. This reduces fraud, filters out junk data, and results in better infrastructure decisions based on true physical-world inputs. {% endtab %} {% tab title="Product Placement" %} **Ensure product display compliance at designated store locations.** Brands depend on accurate placement for optimal visibility in stores, but ensuring compliance across locations is challenging. XYO's Ground-Truth Validation enables brands to confirm product placement, guaranteeing that display agreements are upheld and that products gain their intended visibility. Brands use XYO's validation to confirm products are placed in designated areas, supporting marketing objectives and reinforcing brand integrity. {% endtab %} {% tab title="Consumer Shopping" %} **Confirm item purchases and reward consumers based on validated actions.** For brands wanting to reward users for specific in-store purchases, validation is key. With XYO's Ground-Truth Validation, COIN's Magic Receipts feature lets users earn rewards by purchasing selected items from partnered stores. After shopping, users upload a photo of their receipt for validation. This drives loyalty by connecting real-world purchases with valuable digital perks. COIN's Magic Receipts enables users to earn COIN by purchasing select items, submitting receipts, and claiming rewards, connecting real-world purchases with digital rewards. {% endtab %} {% endtabs %} ### Three Modes of Validation XYO provides multiple methods for validating actions depending on your operational needs. #### Heuristic (Real-Time) This method analyzes a combination of data inputs to validate actions as they occur. It is optimized for time-sensitive operations and is ideal for confirming simple real-world actions quickly and reliably. #### Bound Witness (Real-Time) Bound Witness validates actions involving multiple devices or parties. It confirms physical interaction and relative positioning, making it ideal for collaborative processes, peer-to-peer systems, or proof of handoff. #### Advanced (Post-Processed) This method offers a detailed, retrospective analysis for validating past actions. It is best suited for industries that require long-term record-keeping, reporting, or post-event confirmation. # Proof of Origin XYO’s Proof of Origin verifies that data has not been altered from it's original location or source. It traces the journey it takes, and can verify whether it has been changed. This provides a reliable record that helps organizations make decisions based on accurate information. ### Traceability across systems Data produced by IoT devices can be traced through storage systems, APIs, and smart contracts. This creates a clear chain of custody, making data easier to use and confirm. ### Data quality and partnerships Sharing verified and auditable data improves reliability and builds trust with partners. Proof of Origin provides a way to certify the quality of data exchanged within an ecosystem. ### Use case: smart agriculture Farms using IoT sensors for soil, moisture, and weather data can confirm that information comes directly from the field. This supports irrigation planning, crop forecasting, and resource management. ### Three Modes of Verification XYO offers multiple, overlapping modes of data origin verification to meet different operational needs. #### Data Heuristic Verification Ideal for time-sensitive applications, this method uses real-time algorithms to assess the credibility of incoming data. It evaluates multiple data points to confirm consistency and integrity before the data reaches critical systems. #### Bound Witness Validation Bound Witness pairs data from different sources in real time, confirming interactions and proximity between devices. This is especially useful in environments where confirming collaboration or physical interaction is essential. #### Secure Post-Processing Analytics For use cases that require deep historical validation, this method offers thorough post-processing analysis. It supports compliance, audits, and forensic review, making it well-suited for industries like healthcare, logistics, and finance. # Core Paradigms of XYO XYO is built around a set of guiding paradigms that make its tech distinct: * **Off-Chain Data, On-Chain Proof**: Securely hash and verify data without exposing the content. * **Data Rollups for Scale**: Group transactions or data inputs to reduce cost and increase speed. * **Decentralized Witnessing**: Devices observe and confirm multiple data points, rolled up for efficient verification. * **Sovereign Participation**: Individuals and organizations maintain control over the data they produce and validate. * **Decentralization Through Efficiency:** By shrinking node requirements XYO allows more people—not just corporations—to run nodes. These concepts make it possible to create specific XYO solutions such as: * **Proof of Location:** Prevent spoofed and fraudulent location data. * **Proof of Origin:** Prevent or detect fraud through data origin and production affirmation. * **Chain of Chains:** Merge individual Proof of Origin chains into a shared, decentralized global state. * **Ground-Truth Validation:** Cryptographically validate user actions in the physical world. as well as allowing industries to: * **Track and monetize** real-world data * Create **scalable Web3 apps** with fast, low-cost transactions * Operate transparently and efficiently **at global scale** # Off-Chain Data, On-Chain Proof A foundational principle of XYO Layer One (XYOL1) is that **not all data needs to be stored on-chain to be trusted**. Instead, XYO emphasizes *off-chain data generation* with *on-chain verifiability*—allowing for privacy, scalability, and efficiency without sacrificing integrity. This approach allows decentralized applications to prove that something happened, was seen, or was created—without publishing the full content or context. ### Why It Matters In traditional blockchains, data must often be fully written to the chain to be trusted. This creates friction: * Sensitive information can be exposed publicly * Storage requirements grow rapidly * Validation becomes slower and costlier over time XYO solves this by decoupling **proof** from **payload**: you can trust that a thing occurred *without seeing the full thing*. ### Benefits * **Privacy-Preserving**\ No need to expose user data, business IP, or private details. * **Scalable**\ Large or continuous data streams remain off-chain, while compact proofs keep the blockchain lean. * **Verifiable**\ Data authenticity is provable using public hashes, signatures, and trees. * **Aligned with Digital Sovereignty**\ Control over data remains with the user, not the network. In XYO, **proof is what matters—not visibility**. Off-Chain Data, On-Chain Proof is more than a feature—it's a philosophy that shapes everything from micro-interactions to global data infrastructure in the XYO ecosystem. # Off-Chain Data XYO Layer One XYOL1 provides multiple mechanisms that enable off-chain data handling while maintaining on-chain trust through cryptographic proofs. ### Layer One Features #### [Bound Witnesses](broken://pages/ZqlVsvoRlxTIq1Gpys9b) Bound Witnesses allow two devices to mutually sign and record an interaction without sending the full event to the blockchain. The interaction is proven by shared, signed cryptographic evidence—**not by broadcasting full data**. #### [Bearer Proofs](broken://pages/O4xAGFFYZ6LURfVJOLio) Bearer Proofs are small, cryptographically secure references that prove a piece of data belongs to a known set—**without revealing or transmitting the full set**. This allows users to verify claims without sharing underlying records. #### [Framing Cursors](broken://pages/eIyVnMmlZBymn9ICKsz9) Framing Cursors enable efficient access to off-chain data by marking *where* to look within a larger structure. They let you provide minimal proof of inclusion across specific frames of the blockchain—again, **without full-chain scanning**. #### [Bound Witness Trees](#dbound-witness-trees) Instead of validating transactions one by one, Bound Witness Trees let XYO aggregate many events into a single hash. This hash is stored on-chain. If validation is needed later, the full tree can be reconstructed and proven off-chain—**only the hash lives on-chain**. ### Real-World Example A supply chain logs a sensor reading for perishable goods (e.g., vaccine temperature). The full sensor data is too large and sensitive to store publicly. #### **With XYO** * The sensor logs the reading off-chain. * A Bound Witness is generated to prove the reading occurred and was valid. * A hash of that reading is recorded on-chain via a Bearer Proof or within a Bound Witness Tree. * At any point, a verifier can validate the reading’s authenticity by comparing it against the on-chain proof—without ever seeing or revealing the full data. # XYO Schema In the XYO ecosystem, **Schemas** are the foundation that ensures consistent, secure, and verifiable communication between all participants in the network. Whether it’s a Bound Witness, a Bearer Proof, or a blockchain transaction, schemas define **how data must be structured** and **validated** across XYO Layer One and beyond. **Without schemas, the XYO Layer One Blockchain would not be able to achieve its goals of high throughput, security, decentralization, and data sovereignty.** ## Introducing XYO Schemas **XYO Schemas** are structured templates that define: * What fields a payload must contain * What data types are allowed (e.g., hash, integer, address) * How payloads are serialized and validated **Think of a schema like a "blueprint"** that all devices, nodes, and clients must follow when creating or validating data. Without schemas, decentralized systems would quickly fall into chaos: different nodes would interpret the same payloads differently, breaking consensus and trust. ### Why Schemas Are Critical in XYO * **Validation:** Payloads must match an expected schema to be accepted into the blockchain. * **Efficiency:** Schemas allow for predictable parsing, fast validation, and reduced computational load. * **Security:** Malformed or malicious data can be automatically rejected if it fails schema validation. * **Extensibility:** New types of actions (e.g., new transaction types, new proofs) can simply define new schemas without changing the entire system. # Example: Test Payload with Schema ## Using a Test Payload with a Schema in XYO Development When developing and testing modules in the XYO ecosystem (such as Sentinels, Archivists, or Diviners), developers often use **custom test schemas**. **This allows them to safely validate system behavior without affecting real production data.** ### What Is a Test Payload? A **Test Payload** is a simple payload structure created with: * A custom schema (e.g., `network.xyo.test`) * Test data values * Minimal required fields for storage, retrieval, or query operations This enables developers to focus on testing the **system flow** (insert ➔ retrieve ➔ validate) without needing a real-world schema like `network.xyo.transfer`. ### Example Test Payload Here’s what a simple **Test Payload** might look like: ```typescript const NETWORK_XYO_TEST = 'network.xyo.test' as const; const testPayloads = [ { schema: NETWORK_XYO_TEST, value: 1, }, { schema: NETWORK_XYO_TEST, value: 2, }, ]; ``` # Real-World Examples: A Geospatial Schemas for Eco-Focused Industries Here's how a single Schema could be applied to different payloads. ### Geospatial Data {% tabs %} {% tab title="Empty Schema" %} ```typescript { "schema": string, "sensorId": string, "location": { "name": string, "nationalPark": string, "country": string, "state": string, "latitude": number, "longitude": number, "elevationMeters": number" }, "timestamp": T00:00:00.000Z, "environmentData": { "temperatureCelsius": number, "humidityPercent": number, "soilMoistureLevel": number } } ``` {% endtab %} {% tab title="Yosemite Falls" %} ```typescript { "schema": "network.xyo.environment.forest-sensor", "sensorId": "sensor_alpha_74", "location": { "name": "Upper Yosemite Falls", "nationalPark": "Yosemite National Park", "country": "United States", "state": "California", "latitude": 37.7565, "longitude": -119.5967, "elevationMeters": 739 }, "timestamp": "2025-04-25T07:45:00Z", "environmentData": { "temperatureCelsius": 13.2, "humidityPercent": 72, "soilMoistureLevel": 58 } } ``` {% endtab %} {% tab title="Banff National Park" %} ```typescript { "schema": "network.xyo.environment.forest-sensor", "sensorId": "sensor_beta_29", "location": { "name": "Lake Louise", "nationalPark": "Banff National Park", "country": "Canada", "state": "Alberta", "latitude": 51.4254, "longitude": -116.1773, "elevationMeters": 1600 }, "timestamp": "2025-04-25T12:15:00Z", "environmentData": { "temperatureCelsius": 7.5, "humidityPercent": 65, "soilMoistureLevel": 48 } } ``` {% endtab %} {% endtabs %} # Global Stats, Core Details, & Case Studies ### Global Stats Millions of people are already creating verified data as XYO Nodes. * 10M+ Node Installs * 5B+ XYO Tokens Rewarded * 150+ Countries ### XYO at a Glance * Founded in 2018, XYO is **the first DePIN ever to come online**, launching well before the term “DePIN” was widely adopted. * The original [XYO White Paper](https://docs.xyo.network/XYO-White-Paper.pdf) was released in May 2018, outlining the project’s vision for a decentralized network of devices that validate real-world data. * XYO is headquartered in the United States, and the technology is developed and maintained by [XY Labs Inc.](https://xylabs.com/), a U.S.-based company. * XY Labs is regulated under U.S. securities law and was the first crypto company qualified by the U.S. Securities and Exchange Commission (SEC) for a Regulation A+ offering, **reporting semi-annually** to the SEC. * XYO Token is a deflationary ERC-20 token on the Ethereum blockchain with a fixed total supply, originally designed to incentivize and secure the XYO Network. * In 2025, XYO introduced a [dual-token model](broken://pages/JNDVaiqoNw9Vkhxs7ahw), adding [XL1](broken://pages/YJNm2OlCVQzkfFq5G9fY), a utility token for gas fees and rewards on XYO Layer One, while XYO remains the governance and staking token. * XYO’s technology stack includes [Proof of Location](broken://pages/uRTWloynohvAQUOsjPc3), [Bound Witnesses](broken://pages/ZqlVsvoRlxTIq1Gpys9b), [Proof of Origin](broken://pages/boECXuOjKlc2v5InCBCO), and other mechanisms for real-world data validation and decentralized infrastructure. * XYO is listed on [major global exchanges](https://xyo.network/token/exchange), including [Coinbase](https://www.coinbase.com/price/xyo), [Uniswap](https://app.uniswap.org/swap?chain=mainnet), [HTX](https://www.htx.com/trade/xyo_usdt), [Bitvavo](https://account.bitvavo.com/markets/XYO-EUR), and more. * The token can also be earned through participation in the network as a mobile node using the [COIN app](broken://pages/b1YU31LEYdcTbVpPkN3I), which has millions of users worldwide. ### COIN Mobile App Case Studies Since its launch in 2019, the COIN app has been used by millions of people around the world. Along the way, we’ve conducted [multiple case studies](#case-studies) exploring how COIN and the XYO Token have impacted users’ everyday lives—both in significant milestones and small, meaningful moments. From helping someone put a down payment on a home to covering groceries without stress, COIN has enabled real financial progress. In fact, more than **95% of all redemptions in COIN are for the XYO Token**, making it one of the most accessible entry points into the world of cryptocurrency. Users don’t even need a dedicated crypto wallet—COIN supports direct redemptions to Coinbase accounts, making it easy to get started. In our [first study](broken://pages/pqJhBMtoF1tXxzitZIct) conducted in 2021, we discovered that one user had earned enough with COIN to completely pay off a 30-year mortgage. After using the app for two years and redeeming COIN for XYO, a rise in token value increased their portfolio to **$70,108.74 USD**. A [subsequent study](broken://pages/nDIHUfSnfB8F1Fb7kAA4) that year analyzed the activity of 500 users across over 100 countries. Collectively, their redeemed XYO Tokens had grown in value by **$13,759,454.18 USD**. In [our most recent study](broken://pages/MiDazG63iGYNN3uWnDvN) from late 2024, we focused on more personal user stories. One user used COIN earnings to secure stable housing with a home down payment, while another relied on their redeemed XYO to pay rent during a financial crisis. To this day, COIN remains one of the **easiest and lowest-risk ways to get started with cryptocurrency**. It offers a gradual, hands-on way to explore blockchain and XYO, with real-world impact that users can feel day to day. # Enterprise ### Let’s Build Something Big Whether you’re in Web3 gaming, Real World Assets (RWA), weather tech, IoT, or beyond, we’re looking for visionary partners who want to shape the future of decentralized infrastructure, data validation, and real-world utility. Together, we can create smarter integrations, stronger communities, and more scalable opportunities. ### Partner with XYO Looking to collaborate? Let's explore options! Reach out to the team! ### Core Technologies & Solutions XYO offers a powerful suite of decentralized data validation technologies designed to bring trust, traceability, and real-world reliability to your business or product. Our core infrastructure includes **Proof of Location**, which delivers real-time, tamper-resistant validation of physical presence—ideal for logistics, RWA, real-world gaming, and more. **Ground-Truth Validation** builds on this by cryptographically confirming that physical-world actions actually occurred, making it possible to secure events like deliveries, attendance, and motion-based tasks. To ensure data integrity across entire workflows, our **Proof of Origin** technology verifies that data is authentic, correctly sequenced, and unaltered. Together, these technologies empower companies to create immersive, trustworthy, and verifiable real-world interactions across consumer and enterprise environments.
Proof of LocationReal-time validation, anti-spoofing protection, and verifiable location data you can trust./pages/uRTWloynohvAQUOsjPc3/files/ULocIMt0kc44aYbl0zB5
Ground-Truth ValidationVerify real-world user actions and enable unique interactions with your product./pages/ptCGuPmbi5Y9hvDF9cWH/files/jIQGXQNhFHwdiksO1IIl
Proof of OriginConfirm where data originated, the order in which it was generated, and whether it has remained unaltered./pages/boECXuOjKlc2v5InCBCO/files/EYns8O1jNF04YuR8fPCk
# Partnership Opportunities We'd love to hear more about your technology and think of ways we can connect. In the past, we've done fantastic partnerships with companies in Web3 gaming, RWA, weather data, and more! Here's some highlights of what we can do: ### Real-World Data & Integrations Looking to collect high-integrity location or environmental data? Our network of millions of distributed nodes and sensors can unlock unique datasets and enable real-world data validation through Proof of Location and Proof of Origin tech. **Let’s start the conversation.** Reach out to the team! ### Integration, Pilots & Real-World Deployments Want to test how your solution works with real-world infrastructure and Web3-enabled data? From joint pilot programs to software integrations, we’re open to customized solutions that can scale. **Let’s start the conversation.** Reach out to the team! ### **Learn & Earn** Showcase your product to millions of mobile users inside the COIN app. Our Learn & Earn program delivers custom campaigns including: * A branded educational PDF * A multiple-choice quiz to verify learning * A custom CTA to drive action Want to boost visibility, adoption, or network participation? This is a no-brainer. *(Ask us about current pricing.)* **Let’s start the conversation.** Reach out to the team!
### In-App Token & Hardware Redemption Get listed in COIN’s in-app rewards store and let users redeem your token or product using their earned rewards: * **Boost visibility** of your native token * Distribute exclusive branded items or hardware * Drive acquisition and engagement from a highly active audience **Let’s start the conversation.** Reach out to the team! ### Co-Branded Content & Collaboration Engage our ecosystem through curated, cross-promoted campaigns: * **Co-Written Blog Features:** Dive into how our technologies align and complement each other. * **Product Spotlights:** Amplify new launches, tools, or innovations to our community. * **Early Access & Campaign Buzz:** Let us build curiosity and excitement for your next big thing. **Let’s start the conversation.** Reach out to the team!
https://xyo.network/blog/imagining-solutions-1-how-xyo-natix-can-improve-traffic-road-quality-and-public-transit/files/DRffplthoGzgkw77dhFE
https://xyo.network/blog/imagining-solutions-improving-los-angeles-traffic-road-quality-and-public-transit-with-xyo-natix-part-1-copy/files/Q0JnbZ3m4o5wwWC7zPaH
https://xyo.network/blog/imagining-solutions-3-solana-gamefi/files/Kx6LTJOcBCnO3XCYcvCK
https://xyo.network/blog/imagining-solutions-4-xyo-solana-nft-authentication-through-real-world-events/files/4LQwIEc6q3F2jFAIs18n
### Partner with XYO Let’s start the conversation. Reach out to the team! Let’s start the conversation. The future is decentralized, and together, we can make it real. # What is XYO Layer One? **XYO Layer One is the first blockchain designed for data.** Today's blockchains buckle under massive amounts of data. Gas prices spike, transactions overflow queues, and ultimately, the chain **slows down.** For companies that require cryptographic validation for large sets of data, such as artificial intelligence (AI), Decentralized Physical Infrastructure Networks (like us!), or tokenized real-world assets (RWA), the current blockchain options just don’t work. The idea for XYO Layer One first started when we realized today’s blockchains couldn’t handle our own network of more than 10 million nodes. **So, we built one that could.** ### What makes XYO Layer One Different? A central problem XYO Layer One addresses is blockchain bloat. In most systems, every block ever produced must be stored and indexed by every node. As the chain grows, this history becomes too large to manage efficiently. Running a node requires more storage, higher costs, and greater computing power, which reduces participation and weakens decentralization. XYO Layer One uses features such as Lookback Windows and Step Hashes to minimize how much data each node must keep while maintaining security and verifiability. This keeps performance consistent, even as the chain grows. Today, XYO operates one of the world’s largest DePINs. It records and validates real-world events such as asset movement and device activity, making data reliable for applications in supply chains, gaming, insurance, healthcare, and more. ### Key Features of XYO Layer One: * **Sovereign Chains:** XYO enables full autonomy with customizable sovereign chains, ideal for applications requiring complete control over data. * **Data-Driven Scalability:** With roll-ups and Proof of Location (PoL), XYO efficiently scales while maintaining precision, making it a top choice for data-heavy industries like AI, DePIN, and blockchain-based applications. * **Bloat-Free Architecture:** Traditional blockchains often struggle with bloat—where every node must store the entire history of the chain, slowing performance and limiting growth. XYO Layer One avoids this by supporting modular, scalable data structures that keep performance high even as networks and applications grow. * **Multi-Chain Interoperability:** XYO supports data from other blockchains, enabling seamless integration and compatibility across multiple platforms. * **Permanent Data Storage:** XYO introduces cryptographically secure and permanent data storage for reliable long-term use, ideal for industries such as healthcare, finance, logistics, and more. Whether you’re building a decentralized application or managing large-scale data, XYO Layer One offers unmatched capabilities to meet the needs of the modern, data-driven world. It’s a blockchain designed not just for today but for the future, where privacy, security, and scalability are essential. # XYO Layer One vs. Today's Chains XYO Layer One is designed to meet the needs of high-data industries, long-term scalability, and decentralized privacy. Unlike most traditional blockchains, XYO Layer One eliminates the need to store all historical data on every node—making it faster, lighter, and more adaptable. It offers native Proof of Location, customizable sovereignty options, and the ability to support larger data volumes. Whether you’re developing complex dApps or building sovereign chains for enterprises, XYO Layer One is designed for next-generation use cases that require efficiency, flexibility, and privacy-first infrastructure. ### XYO Layer One vs. Other Blockchains
XYO Layer OneSolanaICPPolygonEthereumBitcoin
XYO Layer OneSolanaICPPolygonEthereumBitcoin
Launch DateMid-2025Mar 16, 2020May 10, 2021May 30, 2020Jul 30, 2015Jan 3, 2009
Single Shared Ledger✅✅✅✅✅✅
Enables dApp Development✅✅✅✅✅❌
Allows Larger Data than Bitcoin✅✅✅✅✅❌
Smart Contracts✅✅✅✅✅❌
Supports Roll-ups✅✅❌✅❌❌
Payment Rails✅✅✅✅✅✅
Incremental Improvements✅✅✅✅❌❌
Storage & Compute Speed⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️⭐️
Theoretical Transactions per SecondNot Yet Launched65,000 tx/s209,708 tx/s714 tx/s119 tx/s7 tx/s
Actual Transactions per SecondNot Yet Launched1,100 tx/s1,662 tx/s41.71 tx/s15.41 tx/s6.47 tx/s
Max Recorded Transactions per SecondNot Yet Launched2,909 tx/s25,621 tx/s429 tx/s62.34 tx/s13.2 tx/s
Independent From Ethereum✅✅✅❌❌✅
Advanced, Flexible, & Scalable✅❌✅❌❌❌
Built-In Privacy✅❌✅❌❌❌
No Historical Data Requirement✅❌✅❌❌❌
Optional Sovereign Chains✅❌❌❌❌❌
Native Proof Of Location Protocol✅❌❌❌❌❌
Customizable Sovereignty Options✅❌❌❌❌❌
Data-Driven Scalability✅❌❌❌❌❌
# Uses of XYO Layer One **XYO Layer One is built with both Web2 and Web3 companies in mind.** XYO Layer One's architecture addresses blockchain bloat by keeping the chain lightweight while providing full validation and security. This structure makes it a perfect solution for industries and applications that depend on large volumes of data and data reliability. For example, artificial intelligence's need for trusted training data or decentralized networks need to track devices around the world. ### Artificial Intelligence (AI) AI systems need accurate, verifiable datasets. XYO Layer One makes it possible to validate training data, feedback, and results on-chain without storing entire datasets directly. This creates trust in the process without slowing the network. ### Real-World Assets (RWA) Tokenizing assets such as property, goods, or financial instruments requires certainty that the underlying data is correct. With Proof of Origin and on-chain validation, XYO Layer One provides a trusted layer for transactions involving real-world items. ### DePIN (Decentralized Physical Infrastructure Networks) As the first DePIN, XYO’s network of millions of nodes already shows the value of user-powered infrastructure. XYO Layer One builds on this by enabling data from devices, sensors, and edge networks to be validated at scale. This same solution applies to other device and product tracking industries, such as logistics and supply chain ecosystems. When companies need reliable data, XYO Layer One creates an auditable record of each step, reducing disputes and improving efficiency. ### Healthcare and Regulated Industries In areas where accuracy and compliance are essential, XYO Layer One supports verified data trails for patient records, pharmaceutical supply chains, or research inputs. Its validation model provides both transparency and security. # Dual-Token Model XYO Layer One uses a dual-token model to create a powerful, scalable blockchain ecosystem optimized for DePIN, data, and AI applications. This structure separates the foundational and transactional layers of the network, ensuring long-term sustainability without compromising speed or usability. The two tokens—**XYO** and **XL1**—each serve a distinct purpose that contributes to the health and growth of the network. **XYO** is a deflationary token with a fixed supply. It is designed for staking and securing the network, offering long-term value alignment and stability. Token holders who stake XYO contribute to the structural integrity of the blockchain, reinforcing trust and decentralization across the ecosystem. **XL1**, by contrast, is the utility token that powers day-to-day activity on XYO Layer One. It is described as inflationary, but this inflation is deliberately restrained—capped at a **0.7% annual inflation rate**. XL1 is used for gas fees, smart contract execution, real-time rewards, and other core functions of the blockchain. Importantly, as the network scales, **transaction-based burning mechanisms** are expected to **offset or even exceed the token’s inflation rate**, making XL1 **effectively deflationary through active use**. This design ensures that XL1 maintains economic balance and long-term value alignment, even while supporting high-throughput applications. # XYO Token The XYO Token ($XYO) is an ERC-20 token that powers the entire XYO Ecosystem. It is designed to incentivize participation in the XYO Layer One Blockchain through staking and is used throughout XYO products and services, including XYO's mobile node application, "COIN". It is used for data validation, smart contract interactions, rewards, and 3rd-party and/or partner payment for use of the XYO Ecosystem. ### When Was $XYO Launched? The $XYO Token was launched in 2018. #### $XYO ERC-20 Contract: ### What Does the $XYO Token Do? $XYO serves as the fuel for the XYO Network's ecosystem. ### Who Uses $XYO? * Everyday users of the COIN App who earn $XYO for contributing location data. * Developers and enterprises leveraging the $XYO Network for trusted location verification. * Token holders who trade, stake, or hold $XYO for future utility in the expanding ecosystem. ### How to Get $XYO Today There are two main ways to acquire $XYO: Purchase on an exchange, or earn it through XYO's DePIN app, COIN. #### 1. Buy $XYO on Exchanges You can also purchase $XYO on several cryptocurrency exchanges, including: * [Coinbase](https://www.coinbase.com/price/xyo) * [KuCoin](https://www.kucoin.com/trade/XYO-USDT) * [Gate.io](https://www.gate.com/trade/XYO_USDT) * [Crypto.com](https://crypto.com/price/xyo) * [Uniswap (DEX)](https://app.uniswap.org/explore/tokens/ethereum/0x55296f69f40ea6d20e478533c15a6b08b654e758) *Always check exchange availability based on your region.* #### 2. Earn $XYO in the COIN App * [Download the COIN App](https://xyo.network/coin) (iOS/Android) * Start completing tasks to earn $COIN * Redeem your $COIN for $XYO once you reach a reward threshold ### Looking Ahead $XYO is now evolving with the introduction of XYO Layer One, a dedicated blockchain infrastructure designed to unify the XYO ecosystem. This evolution will increase the token’s utility across staking, network security, and governance. # XL1 Token The XL1 Token ($XL1) is a new token launched in 2025 by the XYO team as part of the rollout of [**XYO Layer One**](/xyo-layer-one/what-is-xyo-layer-one), a blockchain designed to support the [XYO ecosystem](/about-xyo/what-is-xyo). $XL1 is on the XYO Layer One blockchain. It serves as the **gas token** of the XYO Layer One blockchain and plays a critical role in powering transactions, rewarding staking participants, and enabling decentralized applications across the network. ### When Was $XL1 Launched? * **Announced:** Early 2025 * **Mainnet Launch:** September 2025 * **Supply: $**XL1 will have a TGE during the Genesis Era The XL1 Token was introduced as part of a broader initiative to improve the scalability, utility, and sovereignty of the XYO ecosystem through a dedicated blockchain infrastructure. ### What Does the XL1 Token Do? $XL1 is the core utility token for XYO Layer One and is used to: * Pay gas [fees](/xyo-layer-one/architecture/transaction-fees) for on-chain transactions * Power smart contracts and decentralized applications * Reward participants inside the blockchain who maintain or contribute to the network * Enable low-cost, high-frequency interactions across the ecosystem. ### How Does $XL1 Relate to the XYO Token? While [$XYO](/xyo-layer-one/dual-token-model/xyo-token) remains the **staking and security token** of the ecosystem, $XL1 is focused on **utility and throughput**. Together, they form a **dual-token model**: * **XYO:** Used for staking, governance, and securing the network * **XL1:** Used for gas, smart contracts, and incentivizing participation This separation allows XYO to maintain long-term value while $XL1 handles the dynamic needs of a growing Layer One blockchain. ### Who Uses $XL1? * Developers building on [XYO Layer One](/xyo-layer-one/what-is-xyo-layer-one) * Users performing transactions or interacting with smart contracts * Partners integrating geospatial data and decentralized infrastructure * COIN App users exploring the new features enabled by XYO’s blockchain ecosystem # Architecture ### The Goal of XYOL1 XYO Layer One is a lightweight, scalable blockchain built for data. It uses a variety of [features](/xyo-layer-one/xyo-layer-one-features) such as [Lookback Windows](/xyo-layer-one/xyo-layer-one-features/lookback-window), [Step Hashes](/xyo-layer-one/xyo-layer-one-features/step-hash), and [Bound Witness Trees](/xyo-layer-one/xyo-layer-one-features/rollups/bound-witness-trees) to significantly decrease modern blockchain issues, namely blockchain bloat. Blockchain Bloat is due to modern chains requiring each node to maintain a full historical list of the chain & its transactions, even as it grows. This means each new block, transaction, and data-heavy trends (NFTs or massive DeFi trading, for example) causes the chain to get "bloated" — slowed down by the chain's size. Worst of all, as it continues to grow, the issue gets significantly worse. Only new, redesigned blockchains have the chance to start from scratch with a blank slate, but ultimately, if the nodes require the same level of historical tracking, the new chain will head towards the same fate. **XYO aims to completely redesign blockchain for data, and most importantly, *****eradicate*****, bloat.**
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### Node Structure XYO Layer One is powered by a decentralized network of nodes. All nodes building and running the XYO Layer One Blockchain must comply with the XYO Protocol to achieve the desired functionality. **Block Producer Nodes** are responsible for producing blocks, **Validator Nodes** check for block compliance, and **Efficiency Nodes** are exactly what they're named: nodes designed to improve efficiency for other nodes and the blockchain overall.
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Block Producer Node/files/fgTIMAUKDzi9i4sNl1VZ/files/xozqCJtKF5QnvNsF2xe9/pages/ib8WSfnBcxo4MygYxfv1#block-producer-nodes
Validator Node/files/JjmKTS8Juz0UYAzXDW8Z/files/P6yqpuBuvYCvACF0OZzO/pages/ib8WSfnBcxo4MygYxfv1#validator-nodes
Efficiency Node/files/gjT4IUYQZXuv7rHmf20t/files/qhw6LMKPs3x7Qpy1a6DT/pages/ib8WSfnBcxo4MygYxfv1#efficiency-nodes
### Block Structure In XYO Layer One, blocks are a special type of [Bound Witness](/xyo-layer-one/xyo-layer-one-features/bound-witness) that include the block number, the hash of the chain they belong to, and a list of core elements: * [Payloads](/xyo-layer-one/architecture/block-structure#payloads): Data hashes permanently stored on the blockchain, usually representing transactions, transaction hashes, or schema-compliant producer payloads. * [Transactions](/xyo-layer-one/architecture/block-structure#transactions): A type of Bound Witness with fields for chain, fees, expiration (exp), not-before (nbf), and a script field for standardized contract-like actions such as the elevate script. * [Signatures](/xyo-layer-one/architecture/block-structure#signatures): Cryptographic proofs from addresses that confirm the block’s existence. Learn More ### Transaction Fees Transaction Fees are any funds provided by the client when submitting a transaction to be included in a block.
Base FeeThe Base Fee is XL1 required for a transaction to enter the pending transaction pool. This fee is normally burned. However, if the transaction was invalid, it can be claimed by the entity who received the invalid transaction./pages/U9d7bOoirrNrWfyWvPp6#base-fee
Gas FeeThe Gas Fee is XL1 provided to cover the cost of processing and including the transaction by the block producer. If gas is insufficient, the transaction will not be included on the blockchain./pages/U9d7bOoirrNrWfyWvPp6#gas-fee
Priority FeeThe Priority Fee is XL1 offered to a block producer to raise the priority of the transaction. When the transaction is included in a block, this fee may be transferred to the producer's address of choice./pages/U9d7bOoirrNrWfyWvPp6#priority-fee
### Staking Staking with $XYO in the XYO Layer One Blockchain is integral to securing the blockchain, and users have more than one option for participating in the staking ecosystem.
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Node StakingThere are two types of Node Staking: Block Producer Node and Validator Node Staking. Staking a Node should only ever be done by the Node owner, and not a multitude of parties. Node Staking includes risk of slashing, but gives returns higher rewards than System, or "Nodeless", Staking. /files/sDUvSqOcyx9nUvgHSgeP/files/uMtEdDAKFrMvxk2JdFoy/pages/Vgh52GpTHSBYrRLFMTQZ#node-staking
System StakingSometimes referred to as "Nodeless" Staking, this version allows a user to stake the system itself, rather than an individual node. System Stakers earn rewards from the Step Reward Pool. By locking up XYO to System Stake, the "risk" a user incurs stems from the inability to quickly move the stake, but this stake cannot be slashed inside the network itself./files/YVH1uHDE76Nz88H6wlM0/files/addV35TBhjxh4YDCTfdo/pages/Vgh52GpTHSBYrRLFMTQZ#system-staking
Learn More ### Rewards XYO Layer One implements two primary reward mechanisms to incentivize participation: [**Block Rewards**](/xyo-layer-one/rewards/block-rewards) and [**Step Rewards**](/xyo-layer-one/rewards/step-rewards). While both reward systems serve complementary roles, they differ in distribution timing, frequency, and intent. Learn More # Node Structure As with most blockchains, XYO Layer One is powered by a decentralized network of nodes that work together to construct, validate, and optimize the blockchain. All Nodes building and running the XYO Layer One Blockchain must comply with the XYO Protocol to achieve the desired functionality. The architecture consists of three core node types: * Block Producer Nodes * Validator Nodes * Efficiency Nodes Block Producer Nodes are responsible for producing blocks, Validator Nodes check for block compliance, and Efficiency Nodes are exactly what they're named: nodes designed to improve efficiency for other nodes and the blockchain overall. ### Block Producer Nodes Block Producer Nodes are responsible for producing blocks from the pending transactions in a shared transaction queue. Each block the node produces include the hashes of any included transactions and any elevated payloads. ### Validator Nodes Validator Nodes are responsible for a variety of validations in the XYO Layer One Blockchain. One of the most common validations they complete are Block Validations. Validator Nodes confirm blocks are valid before the slashing window for those blocks expires. This keeps Block Producers accountable, and ensures a third-party is validating their work. Once their validation is complete and results in an acceptable block or other XYOL1 component, Validator Nodes can choose to submit a participation transaction, showing the work they completed. These Participation Transactions are key to the Validator Node's reward system through the [Step Rewards Pool](/xyo-layer-one/rewards/step-rewards). #### Repairs Should a Validator Node detect invalid blocks or components, it can propose a repair, such as a Rollback or Replacement Repair. Should this occur, the offending node that produced the invalid material can have their stake slashed. In all the cases of accepted actions, both the action and original state remain in the blockchain for future transparency. * **Rollback Repair**: A rollback repair is the simplest, but also the most disruptive repair. This involves resetting the head of the chain back to the block before the invalid block was produced. * **Replacement Repair**: A replacement repair is a new block that supersedes the previous block. This causes state aggregators to use the new block in place of the original block. The resulting state, to be valid, must result in the aggregate state that would have existed if the byzantine block was properly processed. ### Efficiency Nodes Efficiency Nodes are broadly defined, and normally are separate nodes performing specific actions to improve the speed and congestion for the blockchain. Oftentimes, it offers an easy reference for other Nodes to use, such as reference related to XL1 transfers and gas payments. When a separate Efficiency Node is used for this, Block Producer and Validator Nodes can simply refer to the Efficiency Node's reference, improving transaction efficiency while simultaneously preventing invalid transfers from being included in blocks. # Block Structure In XYO Layer One, blocks are a specific type of [Bound Witness](/xyo-layer-one/xyo-layer-one-features/bound-witness). Some of the defining features of a Block Bound Witness are the additions of several unique fields, such as the number of the block itself and the hash of the chain it exists on. As a Bound Witness, an XYO Layer One Block also contains a list of each of the following: Payloads, Transactions, and Signatures. ### Payloads **Payloads** are data hashes selected for permanent inclusion, or "Elevation", in the XYO Layer One Blockchain. Each hash must be validated prior to being elevated, and once elevated, it is stored immutably on-chain. These payloads typically represent one of the following: a full Transaction, a specific hash elevated from within a Transaction, or a schema-compliant payload added directly by the block producer, known as a Producer Payload. All payloads must conform to an approved schema—such as the Transaction or Transfer schema—to be included. For example, a block producer might include a Transfer payload to designate the recipient of the block reward once the block is successfully built and validated. #### Producer Payloads Producer payloads represent essential protocol-level operations and must be formatted under standardized schemas, such as `network.xyo.boundwitness`. These payloads are always generated by the block producer and will be fully validated when determining chain state. Examples include transfers, claims, protocol votes, and staking intents. * **Inclusion Criteria**: For a transaction to be included in a block by a block builder, it needs to be first-order validated. This means that all payloads in the transaction Bound Witness must be available (hash matches provided payload) and pass full validation. * **Voting**: Block Producers can participate in **Producer Voting** to vote on adopting a protocol update. This is done via the `network.xyo.chain.vote` payload. **Producer Payload Schemas** * `network.xyo.transfer` * `network.xyo.chain.stake.intent` * `network.xyo.chain.claim` * `network.xyo.chain.vote` ### Transactions **Transactions** are an additional type of Bound Witness, containing fields such as `chain`, `fees`, `exp` (or "Expiration"), and `nbf` (or "Not Before"). These transactions contain information about the transaction and also have a specific script field that designates smart contract-like scripts to be executed. Any script in this field must be a standardized script for the XYO Layer One Blockchain, such as the `elevate` script that designates a hash to be elevated to the next level. ### Signatures **Signatures** are addresses that cryptographically sign the block, representing addresses confirming block existence. # Transaction Fees Transaction Fees are any funds provided by the client when submitting a transaction to be included in a block. ### Base Fee The Base Fee is defined as the amount of XL1 that needs to be provided for a transaction to enter the pending transaction pool. If the transaction passes the initial signature check, the Base Fee is burned as part of the blockchain’s standard operation. In the case that the transaction fails protocol validation, the actor who is being asked to accept the transaction may claim the Base Fee by wrapping the invalid transaction in a Claim Transaction. ### Gas Fee The Gas Fee is defined as the amount of XL1 that is provided to cover the cost of processing and including the transaction by the block producer. This is variable based on the size of the transaction (including elevated payloads) and the scripts processed during block building. If the gas is insufficient to cover the calculated cost, then it is not included in the blockchain. **100% of this fee may be transferred to the producer's address of choice**, which in most cases is their own address. ### Priority Fee The Priority Fee is defined as the amount of XL1 that is granted to the block producer to raise the priority of the transaction. To determine the priority score, the priority amount is divided by the gas amount. When the transaction is included in a block, **100% of this fee may be transferred to the producer's address of choice**. # XYO Layer One Features XYO Layer One is designed to handle the complexities of modern data-driven applications with advanced features that enhance scalability, efficiency, and performance. These innovations tackle common challenges in blockchain technology such as bloat, slow data retrieval, and high computational costs. Below are the key technical features that make XYO Layer One a standout blockchain solution.
Bound WitnessCryptographically proves two parties were in proximity and/or that exchanged data is genuine./files/xyb0MMKabU6rLhf6sxV7/pages/XuhXvUV93TwdtFqLUonb
Lookback WindowOptimizes blockchain operations by reducing the need to store and process older data, increasing efficiency./files/xVTz6G2M3zpya6EKv1Cc/pages/l66tDZwSqEGI7MeDGSOd
Step HashEnhances data retrieval by grouping blocks, improving search speed and reducing the load on the system./files/ecI2wFTD2qqZzNqNtToG/pages/Y5AdSkeb52wt4rruNtz4
RollupBundles multiple transactions off-chain and submits a proof to the blockchain, reducing storage and computational demands./files/xyb0MMKabU6rLhf6sxV7/pages/jUE1VuoI4WbxRlCiiEFG
Bound Witness TreeOrganizes transactions into a tree structure for efficient verification and scalability./files/c8h6wpKiCOmiVGLyWBob/pages/W3ns4mWDEkeHtP0J1SFw
Framing CursorSegments the blockchain for faster data retrieval, enabling targeted searches across large datasets./files/lmQewKZj9nPcA99FmVSW/pages/1wxdqyERvPlLFdkyb2Tf
Bearer ProofProvides cryptographic proof of data inclusion in a set without needing the entire containing set./files/QZnIgrzPuxRd2rbjXtOM/pages/TBcda1mWZEmZvkSRdoRp
Proof of PerfectAlgorithmic proof that ranks items such as chain heads in order of perfectness./files/QhOXD8VxybT9aRfefFbh/pages/jNI0FEcDgP9VXjVPEZda
# Step Hash Step Hashes in XYO Layer One significantly enhance the efficiency of locating data within the blockchain. This method contrasts with traditional blockchains, which often require a full walk of the entire chain to verify included data. ## How Step Hashes Work In XYO Layer One, Step Hashes group blocks together into multiple segments of progressively larger sizes. By doing so, Step Hashes enable faster searches by allowing you to first check the group hashes and then zoom into specific blocks within those groups. Instead of verifying blocks one-by-one, Step Hashes allow you to take giant steps through the blockchain. This approach drastically reduces the time needed to access older parts of the chain, making data retrieval much more efficient. {% @mermaid/diagram content="flowchart TD A\[Full Blockchain] --> B\[Step Hash 1
Blocks 1-31] A --> C\[Step Hash 2
Blocks 32-63] A --> D\[Step Hash 3
Blocks 64-95] B --> E\[Block 13] B --> F\[Block 27] C --> G\[Block 54] C --> H\[Block 62] D --> I\[Block 68] D --> J\[Block 89] subgraph Easy Navigation E F G H I J end " %} ### Benefits of Step Hashes This innovation brings two key advantages: * **Speed**: By grouping blocks and allowing for large-scale searches, Step Hashes significantly reduce the time spent accessing specific blockchain data. * **Scalability**: With Step Hashes, the blockchain is able to scale more effectively, ensuring that as the network grows, data retrieval remains fast and efficient. Step Hashes set XYO Layer One apart from traditional blockchain systems by making data access more efficient, enhancing the overall speed and scalability of the network. # Step Hash: Real-World Examples ### Patient Data Access on a Health Network A decentralized health system uses XYO Layer One to store and validate hashed patient records—visit logs, prescriptions, and lab results—while keeping private data off-chain. #### ❌ Traditional Blockchain To retrieve a patient's historical medical visit from years ago, the system must scan block-by-block through the entire chain. This results in long wait times and high computational load. #### ✅ With Step Hashes Blocks are grouped into progressively larger segments, allowing the system to **leap directly** to the right data group and then quickly pinpoint the needed record. * Data lookup time drops from minutes to milliseconds * Efficient queries even across years of records * Scalable access as patient history grows ### Legal File Anchoring and Verification A law firm uses XYO to anchor document hashes on-chain for proof of existence and timestamping—such as contracts, patents, and digital signatures. #### ❌ Traditional Blockchain To verify when a file hash was first recorded, the firm must walk through each block until it finds the transaction—especially slow if the document was anchored years ago. #### ✅ With Step Hashes The firm’s verification tools can \*\*skip across grouped hashes\*\*, quickly narrowing down to the exact block where the timestamped document exists. * Instant verification of on-chain presence * Useful for audits, court validation, or client disputes * No full-chain scan required # Step Hash: Analogies ### The Library Index Analogy Imagine you’re searching for a specific paragraph in a 10,000-page library book. Without an index, you’d have to flip through every single page—one by one—to find what you need. Now imagine the book is organized like this: * Chapters summarize 100 pages * Sections summarize 10 pages within each chapter * Paragraph markers summarize sentences within each section You can now skip directly to the right chapter, then jump to the section, then find the exact paragraph in seconds. > Step Hashes work the same way: they let you jump through grouped summaries of the blockchain (like chapters and sections) instead of scanning every block linearly. This drastically speeds up data retrieval. ### The File Cabinet Analogy Think of a traditional blockchain like a long row of file cabinets where you must open each drawer in order until you find the file you’re looking for. With Step Hashes, it’s more like a smart archive system: * Each cabinet is labeled with a summary of what’s inside * Cabinets are grouped into zones by date or topic * You can jump directly to the zone, then the drawer, then the file—no guesswork or wasted time > In blockchain terms, Step Hashes group blocks and create shortcuts—so nodes can leap directly to the right area of the chain to verify data quickly. # Step Hash Size Function *Disclaimer: The below information is based on a draft of the XYO Layer One White Paper.* The **Step Hash Size** is determined using a modified [**primorial function**](#user-content-fn-1)[^1], defined as the product of the first ( n + 2 ) prime numbers, incremented by 1. This structure ensures that step intervals avoid overlapping too frequently, enabling broader and more distributed step coverage across the blockchain. More details on the Step Hash Size Function coming soon. [^1]: A function that only multiplies [prime numbers](https://en.wikipedia.org/wiki/Prime_number). # Rollups **XYO Rollups** are a powerful feature within the XYO Layer One blockchain, designed to dramatically improve scalability, speed, and efficiency. By bundling multiple transactions into a single proof, Rollups enable XYO to handle high-volume data loads while keeping blockchain storage requirements and costs low. ### What Are Rollups? Rollups are a scaling solution that reduce on-chain data by processing transactions off-chain and submitting only a single proof to the blockchain. #### How They Work: * **Bundled Transactions**: Multiple off-chain transactions are grouped together. * **On-Chain Proof**: Instead of storing every transaction, only a summary proof is submitted on-chain. * **Fast & Lightweight**: This reduces both transaction costs and network load. {% @mermaid/diagram content="graph TD Data1\[Data 1] --> FinalBW\[Final Bound Witness
For XYOL1] Data2\[Data 2] --> FinalBW\[Final Bound Witness
For XYOL1] Data3\[Data 3] --> FinalBW\[Final Bound Witness
For XYOL1] Data4\[Data 4] --> FinalBW\[Final Bound Witness
For XYOL1]" %} {% @mermaid/diagram content="graph LR Data1\[Data 1] --> Data2\[Data 2] Data2\[Data 2] --> Data3\[Data 3] Data3\[Data 3] --> Data4\[Data 4] Data4\[Data 4] --> FinalBW\[Final Bound Witness
For XYOL1]" %} ### Why Rollups Matter for XYO XYO is committed to solving one of blockchain's biggest challenges: **bloat**—the growing size and storage demands of decentralized ledgers. Traditional blockchains, like Ethereum and Bitcoin, require every transaction to be recorded and stored, making them slower and more expensive as they scale. **XYO Rollups change that.** By recording only the most essential data, Rollups enable the network to scale efficiently and sustainably. ### Why XYO Uses Rollups Rollups are central to XYO’s mission of building a fast, cost-effective, and decentralized data economy. #### Benefits: * **Scalability**: Process far more transactions per second without compromising performance. * **Lower Costs**: Minimize gas fees by limiting how much data is stored on-chain. * **Efficiency**: Keep the blockchain responsive even with large volumes of real-world data. These advantages make Rollups ideal for industries that depend on rapid, reliable data handling—such as **AI**, **machine learning**, **logistics**, and **DePIN**. # Rollups: Real-World Examples ### Treasure Hunt Imagine a location-based treasure hunt game built on XYO. Players explore real-world locations, scanning QR codes, checking in at landmarks, and uncovering clues—each action generating valuable geospatial data. #### ❌ Without Rollups Each player action—every scan, clue discovered, or check-in—is recorded as a \*\*separate transaction\*\* on the blockchain. * Blockchain bloat increases rapidly * Game performance suffers as more players join * Costs rise for developers and users #### ✅ With Rollups All of a player’s actions (and potentially many other players' actions) are \*\*bundled into a single cryptographic proof\*\* using Rollups. * Just one on-chain transaction covers thousands of actions * The blockchain stays lightweight and responsive * Developers can scale gameplay without adding cost ### Supply Chain Verification A logistics company uses XYO to track thousands of packages around the world. Each scan, location update, and handoff generates data that must be verified and recorded for compliance and auditing purposes. #### ❌ Without Rollups Every single event—like scanning a package—is written to the blockchain as an individual transaction. If a warehouse processes **50,000 packages in one day**, that's **50,000 separate blockchain writes**. * Network congestion increases * Transaction fees add up * System performance slows #### ✅ With Rollups Instead of writing each event individually, Rollups **bundle all 50,000 scans into one cryptographic proof**. That proof is then submitted to the blockchain. * Just **one transaction** confirms thousands of data points * Blockchain stays fast and efficient * Costs are drastically reduced # Rollups: Analogies ### The Receipt Bundle Analogy Imagine you go shopping with a group of friends. Instead of each person paying separately and getting their own receipt, you all give your items to one friend who makes a single purchase. That friend gets **one receipt** covering everyone's purchases. If anyone wants to verify what was bought, they can simply look at that one receipt—it’s faster and more efficient than tracking down ten separate receipts. > **Rollups work the same way**: rather than recording each transaction individually on-chain, they bundle many transactions off-chain and submit one proof. This reduces costs, saves space, and keeps the blockchain efficient. ### The High-Speed Train Analogy Think of traditional blockchain transactions as people driving individual cars down a single-lane road—each car moves one-by-one, and traffic builds up quickly. Now imagine a **high-speed train**. Passengers (transactions) board off-chain, and the train (rollup) carries them all together. At the end, the train submits a **manifest** (proof) showing who rode the train. > This keeps the blockchain from getting congested, while still recording everything securely. # Bound Witness Trees ## Bound Witness Tree **Bound Witness Trees** are a foundational innovation in the XYO Layer One blockchain, designed to make data verification faster, more efficient, and scalable. ### What is a Bound Witness Tree? Bound Witness Trees are a type of Rollup comprised of 2 or more Bound Witnesses. Rather than validating each transaction individually, XYO can validate an entire group by checking a single **root hash**—dramatically reducing computational load. This structure enables **off-chain processing**, while still securing the full dataset on-chain through the root, making rollups a **first-order feature** in XYO Layer One. Through the single hash, you can "walk back" through the data using the tree structure. The validation of the tree can be done offline, rather than the by block producers, and it also makes the storage of it on XYO Layer One a single hash. **This would allow someone to access the complete tree with just a single hash.** > \*Similar to how all squares are rectangles and not all rectangles are square, all Bound Witness Trees are Rollups, but not all Rollups are Bound Witness Trees. {% @mermaid/diagram content="flowchart TD Block5\[Final Transaction for XYOL1] -- Can Walk Back Data --> Data1\[Data 1] Block5\[Final Transaction for XYOL1] -- Can Include Other Bound Witnesses --> Data4\[Bound Witness 1] Block5\[Final Transaction for XYOL1] -- Can Walk Back Data --> Data2\[Data 2]" %} ### Why They Matter Bound Witness Trees help solve blockchain bloat by streamlining verification and reducing performance bottlenecks. They allow: * **Faster validation**: Only the root needs to be verified. * **Lower computation costs**: Nodes do less work. * **Scalability**: XYO can handle large data volumes without slowing down. ### Key Features * **Hierarchical structure**: Transactions grouped and aggregated. * **Efficient verification**: Minimal data needs to be checked. * **Built-in scalability**: Ideal for high-throughput blockchain use cases. # Bound Witness Tree: Real-World Examples ### R**eal-World Gaming Platform** Imagine a **real-world gaming platform** built on XYO where players collect virtual treasure and complete missions. Every player action generates data that must be validated. Instead of verifying each action individually, XYO uses Bound Witness Trees to verify all actions in a batch—just by validating the root of the tree. Inside each Bound Witness Tree is a number of other Bound Witnesses. The following chart outlines what that could look like, in gaming terms. {% @mermaid/diagram content="%%{init: { "theme": "default", "themeVariables": { "fontSize": "12px" }, "flowchart": { "useMaxWidth": false,\ "useMaxWidth": false, "nodeSpacing": 20, "rankSpacing": 15, "padding": 5, "curve": "linear" } }}%% graph TB DailyCooking\[Daily
🍳 Cooking Quest] --> DailyQuests DailyFishing\[Daily
🎣 Fishing Quest] --> DailyQuests DailyMining\[Daily
⛏️ Mining Quest ] --> DailyQuests GuildStatus\[Guild Status:
👥 In Guild] --> PlayerData PlayerHairstyle\[Hairstyle:
💈 Braids] --> CharacterData PlayerHairColor\[Hair Color:
🩷 Pink] --> CharacterData PlayerEyeColor\[Eye Color:
💜 Purple] --> CharacterData CharacterData@{shape: flip-tri, label: "Bound Witness:
Character Data"} --> PlayerData Username\[Username:
@pedestrian] --> PlayerData DailyQuests@{shape: flip-tri, label: "Bound Witness:
Daily Quests"} --> FinalBW@{shape: flip-tri, label: "Final Bound Witness
For XYO Layer One"} PlayerData@{shape: flip-tri, label: "Bound Witness:
Player Data"} --> FinalBW %% Define yellow style for Bound Witnesses classDef bwYellow fill:#fff176,stroke:#fbc02d,stroke-width:2px,color:#000; %% Apply yellow style to Bound Witness nodes class CharacterData,DailyQuests,FinalBW,PlayerData bwYellow;" %} This ensures accurate, efficient validation without bogging down the network, even as the game scales to thousands of players. # Bound Witness Tree: Analogies ### The Zipped Folder Analogy Think of a Bound Witness Tree like a zipped folder on your computer. Inside the zip file are dozens of documents **and even some additional folders\*.** Instead of storing each one on its own, you compress the whole thing into a single file with a unique fingerprint. That fingerprint is like the root hash of the tree. You can verify the entire contents by checking just that one piece of data. If someone wants to view the original files, they can unzip it — but until then, they don’t have to deal with all the bulk. Bound Witness Trees do the same thing for blockchain: they compress a group of Bound Witnesses into one verifiable unit, enabling off-chain validation and on-chain efficiency. > \*Most frequently, Bound Witness Trees are Rollups of Bound Witnesses **containing** Bound Witnesses. This would be similar to a folder of items inside another folder. ### The Filing Cabinet Analogy Imagine you work in an office with hundreds of documents. Instead of checking each one individually every time, your team creates a single index: one sheet of paper with a summary of what’s inside each folder and drawer. In some cases, the drawers have additional indexes inside of them — extending the data storage immensely. If someone needs to verify a document, they just start with the index and trace back to the exact page. > That index is like the root hash of a Bound Witness Tree. Rather than verifying each transaction separately, the system checks the root to confirm the whole set. It saves time, cuts down effort, and makes verifying large amounts of data fast and simple — while still letting you access the full original records when needed. # Comparing Bound Witness Trees and Rollups ### Rollup A **Rollup** can be viewed simply as a linked list of data. In XYO Layer One, Rollups bundle multiple transactions into a single hash, which is submitted to the blockchain. The final hash allows you to walk backwards through the data to find the specific item you're looking for. This allows validation without storing each transaction individually. Rollups can reduce on-chain data, which improves blockchain efficiency and keeps transaction costs low. {% @mermaid/diagram content="flowchart RL Data2\[Data 2] -- You Need Hash
to Access Previous Data --> Data1\[Data 1] Data5\[Final Bound Witness for XYO Layer One] -- You Need Bound Witness Hash to Access
Previous Data --> Data2\[Data 2]" %}
Rollups bring information on-chain, but through a singular "line", where you must check every item in the list to get to the last item. ### Bound Witness Tree A Bound Witness Tree is a type of Rollup that contains multiple, unrelated data points. Most often, a Bound Witness Tree is comprised of many [Bound Witnesses](/xyo-layer-one/xyo-layer-one-features/bound-witness). {% @mermaid/diagram content="flowchart TD Block5\[Final Transaction for XYO Layer One] -- Can Walk Back Data --> Data1\[Data 1] Block5\[Final Transaction for XYO Layer One] -- Can Include Other Bound Witnesses --> Data4\[Bound Witness 1] Block5\[Final Transaction for XYO Layer One] -- Can Walk Back Data --> Data2\[Data 2]" %}
Bound Witness Trees allow rollups to have a bigger breadth of data inside them: instead of a single list, you can combine multiple rollups into one final payload. The final payload goes on-chain and enables a lightweight way to verify large amounts of data with one simple hash. For an example of a more complex Bound Witness Tree with a real-world example, see [here](/xyo-layer-one/xyo-layer-one-features/bound-witness/bound-witness-real-world-examples). # Lookback Window In XYO Layer One, Lookback Windows enhance the efficiency of block building, validating, and indexing. This concept focuses on narrowing the amount of previous blocks that need to be maintained and analyzed, enabling more efficient blockchain operations. ### How the Lookback Window Works XYO Layer One introduces a variable Lookback Window algorithm, which only requires nodes to store the most recent N transactions — such as the last 10,000 or 1 million. This drastically reduces storage needs while boosting transaction speeds. Older transactions are stored in a backup system, ensuring minimal disruption to performance and allowing for easy access when necessary. ### A Visual Representation of Lookbacks Windows {% @mermaid/diagram content="sequenceDiagram title XYO Variable Lookback Window participant Block1 participant Block2 participant Block3 participant Block4 ``` Block1->>Block2: Block is built activate Block2 Block2-->>Block1: Lookback Window includes
recent N transactions deactivate Block2 Block2->>Block3: Block is built activate Block3 Block3-->>Block2: Lookback Window includes
recent N transactions deactivate Block3 ``` Block3->>Block4: Block is built activate Block4 Block4-->>Block3: Lookback Window includes
recent N transactions deactivate Block4 " %} ### Traditional Blockchain Structure In most traditional blockchains, the Lookback Window spans the entire length of the chain. This means that to analyze data on the blockchain, a node must scan the entire history. While this allows for immediate access to all historical data, it comes at the cost of growing compute and storage requirements. As a result, the network’s hardware needs increase over time, pushing out smaller participants and causing decentralization to erode. Additionally, indexing of the blockchain is often outsourced to centralized Web2 services, creating further inefficiencies ### A Visual Representation of Traditional Blockchains {% @mermaid/diagram content="sequenceDiagram title Traditional Blockchains participant Block1 participant Block2 participant Block3 participant Block4 ``` Block1->>Block2: Block is built activate Block2 Block2-->>Block1: Lookback Window
includes all previous blocks deactivate Block2 Block2->>Block3: Block is built activate Block3 Block3-->>Block1: Lookback Window includes all previous blocks deactivate Block3 ``` Block3->>Block4: Block is built activate Block4 Block4-->>Block1: Lookback Window includes all previous blocks deactivate Block4 " %} ### How XYO’s Lookback Window Improves Efficiency This approach is a significant improvement over traditional blockchains like Bitcoin and Ethereum, where nodes must store the entire blockchain history and manage historical global states (like UTXOs or address balances). These systems face increasing hardware demands, especially as the network grows. With XYO’s Lookback Window, the blockchain remains scalable, efficient, and capable of processing transactions quickly. By minimizing the storage required for blockchain operation, XYO Layer One ensures a more responsive decentralized ecosystem that is better equipped to handle future growth. # Lookback Window: Real-World Examples ### Decentralized Rideshare Data A decentralized rideshare platform uses XYO Layer One to log each ride’s start and end location, time, and fare data. This creates a blockchain-based history of ride activity that is transparent and verifiable. #### ❌ Traditional Blockchain Every ride in the platform’s history is kept permanently on-chain. As the number of rides grows into the millions, each node must store and index the full history to function—slowing down operations and increasing storage costs. #### ✅ With Lookback Windows The platform only keeps the **most recent ride data**—say, the last 100,000 rides—in active memory. Older ride data is archived and available if needed, but no longer burdens the system’s daily performance. * Improves block validation speed * Reduces the node’s hardware demands * Enables greater decentralization ### Social Platform with Content Rewards A decentralized social media app built on XYO rewards users for publishing and engaging with content. Every post, comment, and like is a transaction that gets logged to the blockchain. #### ❌ Traditional Blockchain All user activity remains in memory and must be constantly indexed by every node—even years-old posts. This bloats the blockchain and strains the ability of smaller nodes to participate in the network. #### ✅ With Lookback Windows Only **recent user actions**—such as posts and interactions from the last 30 days—are kept readily accessible. Older activity is moved to a backup layer where it can still be queried, but doesn’t slow down core processes. * Faster network operation * More equitable node participation * Lower infrastructure requirements # Lookback Window: Analogies ### The Security Camera Analogy Imagine a **security camera** in a store. It records everything 24/7, but the staff usually reviews only the last few hours. Older footage is archived and can be pulled up if needed — but it doesn’t clutter the live view or slow down day-to-day operations. The Lookback Window operates on a similar principle: prioritize what’s recent and actionable, while maintaining access to the full history in a more efficient, archived format. > Archived information in an older part of the XYO Layer One Blockchain is accessible, but would likely take longer or cost more to acquire compared to newer information. This system more accurately reflects the work required to gather information on a blockchain and is designed to be a more fluid fit with how humans interact with blockchain. ### The Video Game Analogy Imagine you’re playing a massive open-world video game. **The game doesn’t load the entire map at once** — that would take up way too much memory and slow everything down. Instead, it only loads the section you’re currently in, while keeping the rest stored in the background. When you want to access a new area, you might wait a bit longer as it loads. **The Lookback Window in XYO works the same way.** It keeps the recent and relevant transactions in memory — the “active map” — so nodes can quickly validate and process what’s happening now. Everything else is safely stored, but out of the way. # Framing Cursor **Framing Cursors** make blockchain data retrieval faster, lighter, and scalable. ### What Are Framing Cursors? Framing Cursors are pointers that segment the blockchain into smaller "frames," allowing nodes to **navigate directly to the data they need** without scanning the entire chain. Often, Framing Cursors utilize Step Hashes to identify segments and point access to a specific section. #### How They Work * **Segmentation**: Breaks down blockchain data into manageable frames. * **Targeted Access**: Nodes retrieve specific data quickly via these frames. * **Efficient Retrieval**: Enables faster lookups with less computation. {% @mermaid/diagram content="flowchart TD A\[Full Blockchain Ledger] --> B1\[Framing Cursor 1
Blocks 0-999] A --> B2\[Framing Cursor 2
Blocks 1000-1999] A --> B3\[Framing Cursor 3
Blocks 2000-2999] A --> B4\[Framing Cursor 4
Blocks 3000-3999] ``` B3 --> TX[Targeted Data] classDef frame fill:#e3f2fd,stroke:#64b5f6,stroke-width:2px; classDef cursor fill:#fff59d,stroke:#fbc02d,stroke-width:2px; class B1,B2,B3,B4 frame; class FCursor cursor;" %} ``` ### Why They Matter As blockchains grow, finding and verifying data becomes slower and more expensive. Framing Cursors help XYO overcome this by: * Speeding up data access * Reducing node computation and cost * Supporting scalable, real-time applications ### Advanced Usage Framing Cursors are used in Bearer Proofs to prove inclusion of a transaction using just a few blocks. This means users can **prove something happened on-chain** with minimal supporting data—pushing responsibility to the client and reducing burden on validators. Much like the shift from mainframes to personal computers, Framing Cursors **decentralize workload** and empower end-users while improving blockchain performance. # Framing Cursor: Real-World Examples ### Healthcare Data Access & Validation #### Scenario: In modern healthcare systems, patient data is vast, distributed, and highly sensitive. Hospitals, labs, and insurance providers often need to validate patient histories, treatment records, or vaccine administration without accessing entire medical files. #### How Framing Cursors Help: Framing Cursors allow healthcare providers to quickly jump to specific frames of blockchain-logged data, such as a particular treatment episode or lab result, without scanning the entire patient record on-chain. This ensures: * Faster patient care decisions * Lower operational costs for validation * Enhanced privacy, since only the relevant data segment is accessed Example: A hospital verifying a COVID-19 vaccination record can access just the relevant “frame” in a patient’s digital health ledger, rather than searching through all historical records. {% @mermaid/diagram content="flowchart TD A\[Full Hospital Ledger] --> B1\[Frame Cursor 1:
Patients in Years 1999-2005] A --> B2\[Frame Cursor 2:
Patients in Years 2006-2008] A --> B3\[Frame Cursor 3:
Patients in Years 2009-2012] A --> B4\[Frame Cursor 4:
Patients in Years 2012-2018] ``` B3 --> TX[Patient #39812:
Male Patient, 2010, Heart Attack] classDef frame fill:#e3f2fd,stroke:#64b5f6,stroke-width:2px; classDef cursor fill:#fff59d,stroke:#fbc02d,stroke-width:2px; class B1,B2,B3,B4 frame; class FCursor cursor;" %} ``` ### Supply Chain Traceability #### Scenario: A global shipping company needs to verify the chain of custody for a product—from manufacturing to delivery. Each checkpoint (factory, customs, warehouse, delivery) logs a transaction to the blockchain. #### How Framing Cursors Help: Instead of searching through millions of unrelated shipping logs, the company can use Framing Cursors to directly access the frame containing the specific product’s tracking ID. This improves: * Real-time tracking of goods * Audit speed during customs or recalls * Scalability as more transactions are added daily Example: In the event of a product recall, manufacturers can immediately locate and validate the affected batch’s movement history, without overloading the system with a full-chain scan. {% @mermaid/diagram content="flowchart TD A\[Full Shipping Ledger] --> B1\[Frame Cursor 1:Shipping IDs 1-1000] A --> B2\[Frame Cursor 2:
Shipping IDs 1001-2000] A --> B3\[Frame Cursor 3:
Shipping IDs 2001-3000] A --> B4\[Frame Cursor 4:
Shipping IDs 3001-4000] ``` B3 --> TX[Shipped Product #2836:
Items:4 T-Shirts
Weight: 0.8kg
Destination:San Diego, USA] classDef frame fill:#e3f2fd,stroke:#64b5f6,stroke-width:2px; classDef cursor fill:#fff59d,stroke:#fbc02d,stroke-width:2px; class B1,B2,B3,B4 frame; class FCursor cursor;" %} ``` # Framing Cursor: Analogies ### The Grocery Store Analogy Imagine walking into a massive grocery store the size of a football field. You’re looking for a carton of oat milk—but instead of aisles, every product is just randomly scattered across the store. You’d have to walk row by row, shelf by shelf, just to find what you need. Now imagine that same store is organized into clearly labeled sections: dairy, produce, snacks, beverages. You know oat milk is in the dairy section, so you go straight there. Even better, there’s a digital assistant at the front that gives you a map and points you to exactly the right shelf. **That’s what Framing Cursors do for the blockchain.** Instead of making nodes scan the entire “store” to find a piece of data, Framing Cursors let them jump directly to the right section—making the whole process faster, easier, and far more efficient. # Bound Witness ## What is a Bound Witness in the XYO Network? A Bound Witness is a critical concept that supports trustless validation of real-world data. It allows devices to cryptographically prove that they were in proximity and that the data they exchanged was genuine. This forms the backbone of XYO's Proof of Origin system, enabling decentralized and tamper-resistant location verification. ### Core Concept At its simplest, a Bound Witness Interaction is an electronic “handshake” between two devices. When these devices—such as Sentinels and Bridges—interact, they mutually record the event, sign it, and add it to their individual ledgers. This creates a trustless, verifiable record of the interaction. If both devices record the same interaction, cryptographic proof ensures the data is valid and unaltered. This forms the foundation for Proof of Origin and Proof of Location, enabling secure, decentralized data verification. ### A Deeper Look A Bound Witness is established when two devices (nodes) in the XYO Network interact in a bidirectional manner. During this interaction, they exchange **data** and **public keys**, each signing the event and storing a record. This mutual cosigning proves that the devices were in proximity, producing a zero-knowledge proof of interaction. This proof is the first step in establishing a secure and verifiable chain of data known as a Proof of Origin Chain. These chains ensure that the data used within the XYO ecosystem originated from trustworthy interactions. ### Two Parties Observing The Same Event {% @mermaid/diagram content="flowchart TD ``` DeviceA --> BW1[Exchange Data + Public Address] DeviceB --> BW1 ``` BW1 --> SignAndStoreA\[Device A + Device B:
Stores and Signs Transaction] SignAndStoreA --> BoundWitnessCreated@{shape: flip-tri , "label": Signed Bound Witness Between 2 Parties} ``` classDef boundWitness fill:#fff176,stroke:#fbc02d,stroke-width:2px,color:#000; classDef noteStyle fill:#fff5ad,stroke:#decc93,color:#000;" %} ``` # Bound Witness: Real-World Examples ### Selfie at a Concert Imagine two friends meet at a concert. To prove they were both there, they take a selfie together and each saves a copy on their phone. Later, if someone asks whether they really went, they can each show the same signed photo. Neither has to trust the other’s word alone — they both have a shared, verifiable record. > Bound Witnesses in the XYO system work similarly—when two devices agree on an event and cryptographically sign it, their shared record becomes a trusted piece of data. ### The Handshake Business Analogy Think of a Bound Witness like an old-fashioned business handshake — but with receipts. Two people meet, agree on something, and both write it down and sign it. If one later denies the meeting, the other still has proof — and ideally, both records match. > In XYO, when two nodes interact, they exchange information and both digitally sign the event. Each keeps a record in its own ledger. That mutual signing creates a trustless proof — like a handshake sealed with cryptography — that can’t be faked or denied later. # Bound Witness: Analogies ### Package Delivery Verification A logistics company uses XYO to ensure that package deliveries are verifiable and tamper-proof. Each delivery vehicle and drop-off location is equipped with XYO-enabled devices that perform Bound Witness interactions during deliveries. #### ❌ Traditional Verification Proof of delivery relies on scanned barcodes or a photo confirmation, both of which can be spoofed or disputed. Trust is placed in centralized systems that can be hacked or manipulated, and verifying disputes requires manual audits. #### ✅ With Bound Witnesses When a delivery occurs, the truck’s device and the drop-off point’s device cryptographically handshake, mutually recording and signing the event. This creates a decentralized, tamper-resistant proof that the two devices—and therefore the package—were at the same place and time. * Provides cryptographic proof of real-world interactions * Removes the need for centralized verification authorities * Strengthens trust without exposing sensitive data ### Attendance at Live Events An event organizer uses XYO-enabled devices to verify attendance at concerts, conferences, and sports games. Attendees’ phones or badges act as Sentinels that perform Bound Witness interactions with event entry scanners. #### ❌ Traditional Verification Attendance is tracked by scanning QR codes or checking names off a list. This process is vulnerable to human error, ticket fraud, and centralized server failures. Disputes over attendance often require manual reviews or witness testimony. #### ✅ With Bound Witnesses When an attendee checks in, their device and the event’s device perform a cryptographic handshake, each signing and recording the interaction independently. This creates a decentralized, verifiable proof that the person physically attended the event. * Creates tamper-resistant attendance records * Reduces fraud by proving proximity without relying on trust * Enables private, decentralized verification for reward programs, NFTs, or certifications # Bearer Proof In the XYO ecosystem, not all data comes from traditional blockchain transactions. One powerful feature that makes XYO fast, private, and scalable is something called a **Bearer Proof**. Bearer Proofs are a lightweight, privacy-focused cryptographic feature in the XYO Layer One blockchain. They enable fast, secure verification of data without exposing the full dataset, making the network more efficient, scalable, and private. ### What Are Bearer Proofs? A **Bearer Proof** is a small, secure piece of information that proves something exists in the blockchain, *without needing to show the entire blockchain.* Think of it like a concert ticket: > You don’t need to bring your whole purchase history to get into the show. You just show your ticket. In XYO, that “ticket” is your Bearer Proof. It says, “Yes, this data is valid and part of the system,” without revealing all the data behind it. ### Why Does This Matter? Blockchains are made of long chains of blocks. Normally, to confirm something like a transaction or a data entry, you’d have to scan the whole chain. That takes time and energy. With Bearer Proofs, you only need: * The block or data you’re proving * A small set of linked blocks that show how it fits into the chain This process is **lightweight, secure, and fast**—and it protects your privacy by sharing only the minimum data needed. ### How It Works: Steps and Step Hashes In XYO Layer One, Bearer Proofs are not queries or ad hoc hash checks—they are a **structural element** deeply embedded into the blockchain’s design. The core mechanism behind Bearer Proofs lies in how the chain organizes its data using [**Steps and Step Hashes**](/xyo-layer-one/xyo-layer-one-features/step-hash). Each block in XYO Layer One exists inside **Steps**, "containers" that group blocks together. These Steps are mathematically defined using a **primorial-based function**. Specifically, each Step size is calculated as the product of the first *n + 2* prime numbers, plus one. This produces a predictable but non-overlapping set of increasingly spaced intervals, like: * StepSize1 = 2 × 3 + 1 = 7 * StepSize2 = 2 × 3 × 5 + 1 = 31 * StepSize3 = 2 × 3 × 5 × 7 + 1 = 211 * …and so on. Because of this **hierarchical nesting of Steps**, with smaller Steps embedded in larger ones, the system forms a structure that progressivley includes more of the blockchain’s history, creating a multi-resolution view of the chain. > Think of Steps like versions of a photo stored at different resolutions on your phone. You might keep a thumbnail for quick browsing, a medium version for social media, and the full-resolution image for printing. Each larger version includes more detail, but they all represent the same photo. > > In XYO, smaller Steps give you quick proof of recent data, while larger Steps contain more of the blockchain’s history. You only need the level of detail that fits your purpose — just like you wouldn’t load a full 4K photo to view a tiny thumbnail. This nested Step structure enables efficient Bearer Proofs. When someone needs to prove that a particular block is part of the chain, such as to confirm a balance or transaction, they do not need to walk backward through every block. Instead, they provide the target block along with a **compact path of Step Hash-linked blocks** that show how that block fits into the broader chain. This path typically includes no more than 100 blocks and is sufficient for validation. Because this system is embedded into the structure of the chain, the resulting Bearer Proof is **lightweight, fast, and cryptographically verifiable**. It enables one node to prove inclusion without requiring the other party to scan the entire blockchain. Importantly, it does so without exposing unrelated data, preserving both **efficiency** and **privacy**. Steps also power other important mechanisms in XYO Layer One. For example, **Step Rewards**, the system’s core reward pool, are issued based on activity within specific Step intervals. This makes Steps not only a structural navigation tool but also an **economic unit** for incentive distribution. In short, Bearer Proofs are made possible by XYO’s Step-based design. They are structural, not procedural. They are an outcome of how the chain is built, not a workaround for how it is used. {% @mermaid/diagram content="flowchart TD %%{init: {"flowchart": { "useMaxWidth": false } }}%% A\[Full Data Set] A --> B1\[BW #1] A --> B2\[BW #2] A --> B3\[BW #3] B2 --> C\[Selected Data: Bound Witness #2] C --> D\[Generate Bearer Proof] D --> E\[Minimal Proof - Hash + Frame Reference] E --> F\[Verifier Receives Proof] F --> G\[Verifier Checks Against Blockchain Frame] G --> H\[Validation Succeeds Without Full Data Access]" %} # Bearer Proof: Real-World Examples ### Thousands of DePIN Sensors Imagine a logistics network (DePIN) tracking thousands of sensors in real time. You need to confirm that a sensor logged a valid location without revealing its full movement history. With Bearer Proofs, XYO can confirm the sensor’s location is part of the verified dataset **without accessing or revealing all its data**. This saves time and protects privacy—ideal for sensitive industries like healthcare, supply chain, and finance. # Bearer Proof: Analogies ### The Concert Ticket Analogy Imagine you’re attending a concert. Instead of showing your entire purchase history, email receipt, and payment method at the entrance, you just show your ticket. The ticket is a small, verifiable proof that says, “Yes, I bought this and I belong here”—without revealing all your personal information or the entire ticketing database. **That’s exactly how Bearer Proofs work in XYO Layer One.** They’re like digital tickets: * Small: You don’t need the whole dataset, just the proof. * Secure: It’s cryptographically tied to a larger verified record. * Private: You don’t expose all your data—just what’s necessary to verify inclusion. So instead of carrying a heavy binder of documents (the entire dataset), you show your stamped ticket (the Bearer Proof), and that’s enough to get you through the door. # Proof of Perfect Algorithm *More details on Proof of Perfect will be coming soon. In the meantime, learn about why we created Proof of Perfect, and what to expect from our Proof of Perfect Algorithm!* ### Overview Proof of Perfect (PoP) is XYO Layer One’s novel data-ranking and consensus mechanism. Designed to complement traditional consensus methods like Proof of Work (PoW) and Proof of Stake (PoS), PoP introduces a more adaptive method for selecting trustworthy data - especially chain heads - based on their relative "perfectness" rather than rigid external rules or majority computation. ### The Current Consensus Landscape Consensus mechanisms are the heartbeat of blockchain networks. They determine how distributed systems agree on a single source of truth, despite the presence of malicious actors, latency, and asynchronous operations. While existing mechanisms like PoW and PoS have provided foundational approaches to distributed agreement, they introduce trade-offs in energy efficiency, centralization, and security. Proof of Perfect offers an alternate path: one focused on comparing the relative merit of data points instead of relying solely on fixed conditions or resource-based selection. | Consensus | Strengths | Limitations | | ------------------------ | -------------------------------------------------------- | ------------------------------------------------------------------------------------------ | | **Proof of Work (PoW)** | Security through computational effort, battle-tested. | Energy intensive, favors centralized mining operations, and is susceptible to 51% attacks. | | **Proof of Stake (PoS)** | Energy-efficient, adaptable, supports faster throughput. | Susceptible to "nothing at stake," stake centralization, long-range attacks. | ### Proof of Perfect Proof of Perfect is a refinement model for blockchain data quality. It continuously rebalances trust, performance, and fairness in a way that reflects the real-world complexity of decentralized ecosystems. With formalization and field testing, PoP has the potential to anchor high-integrity, data-centric networks for the next generation of blockchain applications. ### New Advantages * **Comparative Scoring:** Instead of assuming absolute truths, PoP chooses the most trustworthy among many good options. * **Dynamic Adaptation:** PoP can incorporate traits specific to use cases (e.g., speed for AI, decentralization for DePIN). * **Defense Through Diversity:** Encourages broad participation without relying on energy or wealth concentration. * **Attack Resistance:** Weighted history and randomness limit deterministic attacks. # Tokenomics The XYO and XL1 dual-token system powers the economic and security foundations of the XYO Layer One Blockchain. In this system, XYO functions as a staking and governance asset, securing network integrity through Validator Node and Block Producer Node commitments. When staked, XYO allows participants to earn XL1, the inflationary utility token used to pay gas fees, incentivize block production, and support data validation processes. A portion of XL1 fees—such as base fees—is burned, ensuring long-term supply control. Slashing mechanisms protect the network from dishonest behavior, with slashed XYO Tokens also permanently removed from circulation by burning. Meanwhile, decentralized data collectors and processors can be compensated in either token, supporting the network’s decentralized physical infrastructure (DePIN) capabilities. The architecture is designed for flexibility and sustainability, enabling slashing insurance, step-based rewards, and ongoing participation from validators and contributors. The following diagram illustrates the flow of tokens and incentives across the ecosystem. # Tokenomics Chart In the XYO Layer One ecosystem, incentives are designed to reward meaningful contributions to data integrity, availability, and processing. Whether collecting, validating, or storing data, participants are economically compensated through the network’s dual-token model using $XYO and $XL1. A portion of XL1 fees—such as base fees—is burned, ensuring long-term supply control. Slashing mechanisms protect the network from dishonest behavior, with slashed XYO Tokens also permanently removed from circulation by burning. ### Full Chart
#### Block Producers, Validators, and Step Rewards Block Producers earn XL1 rewards for each successfully completed block. A portion of these rewards is automatically allocated to the Step Reward Pool, which accumulates over time and is distributed to both Block Producers and Validator Nodes at predefined block height intervals known as [Steps](/xyo-layer-one/xyo-layer-one-features/step-hash). These steps not only regulate large-scale incentive payouts but also tie into XYO Layer One’s Step Hashing System, which improves long-range blockchain indexing and performance. While the per-block reward decreases gradually every 1,000,000 blocks, the Step Reward Pool continues to grow, offering long-term incentives for persistent network participants.
Block Rewards

  • Earned by: Block Producers
  • Distribution: Directly assigned to the producer's configured address
  • Purpose: Encourages ongoing block creation and secures the network
  • Frequency: Every block
/files/SOJR456HuiQ1d195JOBa
Step Reward Pool

  • Earned by: Block Producers, Chain Validators, Pending Transaction Validators, System Stakers
  • Distribution: From the Step Reward Pool at milestone blocks
  • Purpose: Incentivizes long-term protocol engagement and decentralized network health
  • Frequency: Milestone Blocks (Step Triggers)
/files/wANQPDlM6OVHWDPoHIYZ
#### Transaction Fees and Burning Users pay XL1 in the form of Base Fees, Gas Fees, and Priority Fees when submitting transactions to the Transaction Pool. Base Fees are burned, removing XL1 from circulation. Gas and Priority Fees are sent directly to Block Producers as compensation for processing and including transactions in blocks. To discourage spam or invalid transactions, the protocol allows fees to be burned or redistributed when validation fails. #### Data Collectors Data Collectors receive XYO tokens as rewards for collecting and submitting high-quality data. These tokens can be staked into the Staking Pool, which supports two key node types: Block Producer Nodes and Validator Nodes. Block Producer Nodes help generate XL1 tokens, while Validator Nodes are responsible for validating blocks and transactions, resolving disputes, and finalizing blocks. Validator Nodes earn both XYO and XL1 for their efforts, particularly when they validate blocks correctly or participate in consensus through the Dispute Resolution Layer. When a Validator Node behaves dishonestly or fails protocol checks, Arbitration can trigger a slashing event. In these cases, XYO tokens may be slashed and permanently removed from the system (Burned XYO), reinforcing economic accountability and deterring malicious behavior. A portion of slashed tokens may also be redistributed or transferred as restitution to other parties, depending on the infraction. This dynamic incentive structure is designed to balance inflationary rewards with deflationary burns, encouraging active, honest participation while preserving token value over time.
# Genesis Era The Genesis Era is the beginning phase of the XYO Layer One Blockchain. During this time, the first XL1 tokens are created and distributed to help launch the network. These tokens are used to support development, reward early contributors, and provide the resources needed to grow and maintain the system. While XYO Tokens already exist and are used for staking, governance, and anchoring sovereignty in the network, XL1 Tokens are newly introduced in the Genesis Era. XL1 is the utility token that powers activity on XYO Layer One—covering things like transactions, smart contracts, and data operations. Together, XYO and XL1 help build a blockchain that’s flexible, scalable, and ready for long-term success. ### Genesis Era Supply A fixed 38B XL1 tokens will be minted at the launch of the Genesis block. Over the course of the Genesis era, another 10B XL1 tokens will be minted as the initial blocks are created. As the blockchain grows, XL1 continues to be created for each new block and the inflation rate for XL1 reduces to 0.7% per year, at which time the Genesis Era ends.\\ \ The tokens generated during the Genesis Era (48B) are distributed across three primary groups: | Allocation | Amount | Percentage | | ------------------------- | --------- | ---------- | | **Community & Investors** | 26.8B XL1 | \~56% | | **Team & Advisors** | 10.6B XL1 | \~22% | | **XYO Treasury** | 10.6B XL1 | \~22% | **Community & Investors** Vital contributors, such as node stakers and node participants during the ramp-up of the XYO Layer One protocol and network, are major beneficiaries during the Genesis Era. This allocation supports individuals and entities who provided early participation through network nodes, capital, evangelism, testing, or infrastructure. By aligning their incentives through initial XL1 allocation, the Genesis Era recognizes the importance of active early participants. **Team & Advisors** The technological complexity and unique architecture of XYO Layer One is the result of years of research and development. Allocating a portion of XL1 to those who built, maintained, and architected the system ensures continuity and rewards aligned visionaries. These tokens may be vested or locked to reflect ongoing commitments. **Treasury** As the largest allocation, the XYO Treasury acts as a long-term endowment to fund future growth. It supports developer grants, public goods, educational campaigns, partnerships, bounties, and emergency liquidity. Crucially, the Treasury ensures that governance and ecosystem expansion remain active and well-resourced even if other funding avenues fluctuate. ### Long-Term Issuance and Inflation Design After the Genesis Era, XYO Layer One introduces a gradual **inflation curve** that flattens over time, eventually settling at around **0.7% per year**. This design promotes two essential outcomes: 1. **Incentivizing Future Participation** – People entering the network after launch can still earn XL1 through contribution, validation, and node operation. 2. **Avoiding Wealth Centralization** – A soft inflation curve avoids the extreme concentration of supply common in capped-supply systems like Bitcoin. > *The long-term inflation curve of XL1 follows a diminishing exponential model. Despite early block rewards being higher, the supply growth rate decreases over time, approaching near-zero.* # Block Reward Decay Over Time This chart models how the block reward decreases every 1,000,000 blocks (each step hash). Rewards start at 1,000 XL1 and decrease by 5% per step. Inflation flattens to 0.7% over time. {% @mermaid/diagram content="xychart-beta title "Block Reward Decay Over Time" x-axis \["1", "2", "3", "4", "5", "6", "7", "8", "9", "10", "11", "12", "13", "14", "15", "16", "17", "18", "19", "20", "21", "22", "23", "24", "25", "26", "27", "28", "29", "30", "31", "32", "33", "34", "35", "36"] y-axis "Block Reward (XL1)" 200 --> 1000 bar \[1000, 950, 902.5, 857.38, 814.51, 773.78, 735.09, 698.34, 663.42, 630.25, 598.74, 568.80, 540.36, 513.34, 487.67, 463.29, 440.13, 418.12, 397.22, 377.36, 358.49, 340.57, 323.54, 307.37, 292.00, 277.40, 263.53, 250.35, 237.83, 225.94, 214.64, 203.91, 193.71, 184.03, 174.83, 166.09]" %} # Slashing & Penalties Slashing is a core mechanism in the XYO Layer One protocol that reinforces network integrity by penalizing dishonest or faulty behavior. It ensures that all participants — especially nodes with significant influence — are held accountable through economic incentives and consequences. Slashing is not merely punitive — it's a vital part of XYO’s decentralized governance, encouraging high-quality data, reliable validation, and a secure ecosystem where value is built on verified truth. ### When Block Producer Node Slashing Occurs XYO Tokens can be **slashed and burned** under the following conditions: * **Malicious activity** by Block Producer or Validator Nodes * **Submission of invalid or low-quality data** * **Approval of invalid blocks** by Validator Nodes These actions not only threaten the integrity of the network but also reduce trust in the decentralized validation process. Slashing helps deter such behavior by imposing tangible financial consequences. ### Validator Node Accountability Validator Nodes are not exempt from penalties. If a Validator Node approves a block that is later deemed invalid, they themselves are **subject to slashing**. This mutual accountability helps maintain a high standard of validation and reinforces honest participation. ### Dispute Resolution To ensure fairness, the protocol requires a **dispute resolution layer**. This mechanism serves to: * Prevent **unreasonable or malicious slashing** * Enable appeals or reviews in cases of suspected misjudgment * Preserve trust in the slashing system as the network scales **This is not yet finalized, and further details will be coming out in the White Paper.** ### Slashing Insurance As an added layer of protection for honest participants, **slashing insurance** has been ***proposed*** as a future feature. This would allow stakers to optionally safeguard a portion of their collateral, reducing the risk of total loss in edge-case slashing events. **This is not yet finalized.** {% @mermaid/diagram content="flowchart TD A\[Malicious Behavior or Invalid Data] --> B1\[Block Producer Node] A --> B2\[Validator Node] B1 --> C1\[Slashing - Block Producer XYO Burned] B2 --> C2\[Slashing - Validator XYO Burned] C1 --> D\[Network Integrity Reinforced] C2 --> D D --> E\[Dispute Resolution Layer - Work in Progress] D --> F\[Slashing Insurance - Proposed]" %} # Incentives In the XYO Layer One ecosystem, incentives are designed to reward meaningful contributions to data integrity, availability, and processing. Whether collecting, validating, or storing data, participants are economically compensated through the network’s dual-token model using [**$XYO**](/xyo-layer-one/dual-token-model/xyo-token) and [**$XL1**](/xyo-layer-one/dual-token-model/xl1-token). ### Token-Based Compensation While XL1 is often the choice of compensation for on-chain services, off-chain services can also use XYO. For example, XYO’s DePIN ecosystem utilizes XYO as an incentive and redeem item to encourage accurate and valid data production by contributors. * **Data collectors** – Individuals or devices that gather real-world data * **Data processors** – Nodes or applications that transform or enrich data * **Data storers** – Participants who ensure long-term data availability and access This flexibility allows for a wide range of decentralized services to operate within the network and be appropriately rewarded. # Consensus Model ### Proof-of-Stake Variant XYO Layer One uses a variant of Proof-of-Stake (PoS) as its consensus mechanism, with an added emphasis on Proof of Participation to fairly reward active contributors. Stake size serves as the foundation of trust in the network: it governs which actors are eligible to produce or validate blocks and how much influence they can exert. Trust in XYO Layer One is currently based on stake size and active participation, not on the historical age of the node or its prior activity. This helps simplify the trust model and avoid legacy advantages or bias toward older nodes. Unlike traditional PoS systems where Validator Node staking alone often suffices, XYO Layer One *requires Validators to submit on-chain participation transactions* in order to qualify for rewards in the Step Reward Pool. This ensures that only actively engaged nodes are compensated, helping maintain both performance and accountability across the network. In addition to Validators and Block Producers, System Stakers (users who delegate their stake without running a node) can also earn rewards from the Step Reward Pool at a lower rate. This structure supports a broad range of contributors while preserving strong incentives for Validators and Block Producers, who perform protocol-level duties and assume slashing risk for misconduct or inactivity. Detailed reward models, including the 2-part reward system with the Step Reward Pool alognside Block Rewards, and slashing conditions are described in later sections ### Proof of Participation In some cases, actors perform essential tasks in the ecosystem that leave no visible trace on the blockchain itself. A common example is block validation—when a block is valid, the validator confirms it, but no additional transaction or record is created to show that work was done. Similarly, a gatekeeper managing the pending transaction pool only becomes visible to the network when they reject an invalid transaction and submit a claim. Most of the time, they quietly accept valid transactions, leaving no on-chain evidence of their role. If rewards are only given for catching errors, critical system participants may become disincentivized over time—despite their ongoing important contributions to network security and integrity. To ensure these participants are rightfully rewarded for their network participation, and correctly eligible for rewards from the Step Reward Pool, we use a two-pronged approach. First, each actor has the ability to submit a Participation Transaction in an interval of its choosing. This payload serves two main informational purposes: 1. It confirms an actor was active during a specific range of recent blocks. 2. It can optionally include a list of specific actions the actor performed during that time. The second part of the approach includes a risk of stake to discourage false claims of participation. Submitting a Participation Transaction puts the stake of that Validator at risk, but simultaneously makes that Validator eligible for the appropriate Step Rewards. # Staking Staking is central to how XYO Layer One stays secure and fair. By locking $XYO into the network, participants help protect the blockchain and earn rewards in $XL1, the utility token of Layer One. There are two main ways to stake:
Cover imageCover image (dark)
Node StakingNode operators stake their own address to validate blocks and earn rewards, but face slashing risk for dishonest or harmful actions. Node Staking returns higher rewards than System Staking./files/STlgP4z35bPo2uO4V2rw/files/uMtEdDAKFrMvxk2JdFoy/pages/Vgh52GpTHSBYrRLFMTQZ#node-staking
System StakingAny XYO holder can stake to earn XL1 rewards without running a node and without slashing risk. Due to the low risk, System Staking returns lower rewards than Node Staking./files/H3ocFhmxjeXl9A7NR0U5/files/addV35TBhjxh4YDCTfdo/pages/Vgh52GpTHSBYrRLFMTQZ#system-staking
### Staking Process: Actions & Rules Staking in XYO Layer One moves through a simple cycle: add stake, remove it, wait through a cooldown, and withdraw. Tokens progress from active to withdrawn, with cooldowns in place to prevent abuse. Node stakers earn higher but riskier rewards, while system stakers earn pooled rewards without slashing risk. Learn More ### Slashing Node stakers earn rewards for good behavior but can be penalized for misconduct. If a node provides dishonest data or disrupts consensus, its stake may be slashed. Slashing acts as a safeguard to protect the integrity of the network. Learn More # Types of Staking Staking with $XYO in the XYO Layer One Blockchain is integral to securing the blockchain, and users have more than one option for participating in the staking ecosystem. ### Node Staking There are two types of Node Staking: Block Producer Node and Validator Node Staking. Staking a Node should only ever be done by the Node owner, and not a multitude of parties. Node Staking includes risk of slashing, but gives returns higher rewards than System Staking. ### System Staking Sometimes referred to as "Nodeless" Staking, this version allows a user to stake the system itself, rather than an individual node. System Stakers earn rewards from the [Step Reward Pool](/xyo-layer-one/rewards/step-rewards). By locking up $XYO to System Stake, the "risk" a user incurs stems from the inability to quickly move the stake, but **this stake cannot be slashed inside the network itself.** # Staking Process: Actions & Rules ### Staking Actions Staking involves three core actions: * **Adding Stake**: Stake becomes active immediately upon being added to an address. * **Removing Stake**: The initial staker may remove stake at any time, making it inactive. However, it remains at risk of slashing until fully withdrawn. * **Withdrawing Stake**: After removal, the stake must go through a cooldown period before it can be withdrawn. This prevents malicious actors from evading slashing by instantly withdrawing their stake. The cooldown period is typically defined by a fixed number of blocks in the underlying staking smart contract. ### Staking Stages Staking in XYO Layer One moves through four stages: * **Staked** – Tokens are active and earning rewards. * **Stake Removed** – Tokens are made inactive and stop earning rewards, but remain at risk of slashing until withdrawal is possible. * **Withdrawal Ready** – After a cooldown period (measured in blocks), tokens are unlocked and eligible for withdrawal. They are no longer at risk of slashing but are not yet back in your wallet. * **Withdrawn** – Tokens are returned to your wallet. The cooldown period between Stake Removed and Withdrawal Ready prevents malicious actors from avoiding slashing by immediately pulling tokens after bad behavior. The length of this period is defined by the staking smart contract. ### Staking Rules * **Anyone May Stake**: Any participant can stake, even without running a node. This opens access to a wider range of users and supports broader network security. * **In a Rewarding Event**: * **Node Staking**: Rewards are determined by the node owner, who receives both the block reward and a portion of the Step Reward. These rewards tend to be higher than System Staking. * **System Staking**: System Stakers are not eligible for block rewards. Instead, they can earn participation-based Step Rewards. *More details on slashing mechanisms will be made available in future documentation.* # Why is There a Cooldown Period? When a staker decides to remove their stake position, multiple things happen: 1. Most importantly, the stake position stops earning XL1 rewards. This will happen the moment the staker confirms the unstake action on that position. 2. The XYO Tokens originally used in that staking position **are not immediately returned to the wallet that staked with them.** 3. A countdown, or "Cooldown Period" begins, signaling the system is both reviewing [Node Stakers](/xyo-layer-one/staking/types-of-staking#node-staking) for potentially malicious actions and properly regulating the flow of XL1 tokens to reduce volatility for holders. This Cooldown Period serves two key purposes as mentioned above: Protecting the network from malicious behavior and sustaining a well-regulated token economy. #### Network Protection In Node Staking, the delay is primarily a safeguard against bad actors. If a node behaves dishonestly or provides invalid data, its stake can be [slashed](/xyo-layer-one/staking/slashing). The Cooldown Period after unstaking ensures that these penalties can still be applied before funds leave the system. It discourages manipulation and ensures that all nodes act in good faith throughout their participation. #### Token Protection In System Staking, there is no slashing because the staker has no ability to carry out malicious actions. In this case, the Cooldown is mainly for XL1 and XYO Token protection. With the Cooldown Period, staked XYO Tokens remain temporarily locked, preventing them from being fully withdrawn for a period of time. This slows the supply in circulation and prevents sudden shifts in token supply that could disrupt balance. This stability also supports the network’s overall health and encourages long-term contribution and use. Learn more about each step of the [Staking Process](/xyo-layer-one/staking/staking-process-actions-and-rules).
# Slashing Slashing is a security measure in the XYO Layer One blockchain that holds node operators accountable. Through slashing, bad actors are penalized financially, for example by losing their staked $XYO. Ultimately, slashing discourages bad actions to preserve the integrity of the network. ### Purpose Slashing exists to prevent bad actors from doing negative actions on-chain. If a node submits invalid data, approves bad blocks, or interferes with the chain, it can harm other users' interactions and lower the trust in the blockchain. ### Conditions for Slashing [Node Stakers](/xyo-layer-one/staking/types-of-staking#node-staking) ([Block Producers](/xyo-layer-one/architecture/node-structure#block-producer-nodes) and [Validators](/xyo-layer-one/architecture/node-structure#validator-nodes)) put their $XYO tokens at risk when joining consensus. A stake may be slashed if a node: * Produces or approves an invalid block * Submits false or poor-quality data * Performs actions that break consensus rules [System Stakers](/xyo-layer-one/staking/types-of-staking#system-staking), who contribute through the pooled staking option, do not face slashing risk because they do not have nodes that can commit bad actions and threaten the network. # System Staking Guide System Staking allows you to put your XYO Tokens to work without running a node. By staking, you support the XYO Layer One network and earn $XL1, the native gas and utility token of the blockchain. By locking up XYO through this pool, participants receive XL1 token rewards without any slashing risk, as rewards are distributed from a randomized portion of block earnings. {% hint style="success" %} Genesis Staking is LIVE! Read more about the huge boost of $XL1 that the XYO Team has added to the reward pool for early stakers [here](/xyo-layer-one/staking/genesis-staking-explained)! {% endhint %} ### How to System Stake **Visit the staking portal**\ Go to [xyo.network/staking](https://xyo.network/staking).
**Connect your wallet** * Click **Connect Wallet** and choose MetaMask. * Ensure your wallet has XYO Tokens. * If you don’t yet own XYO, you can buy on popular exchanges: * [Coinbase](https://www.coinbase.com/price/xyo) * [KuCoin](https://www.kucoin.com/trade/XYO-USDT) * [Kraken](https://kraken.pxf.io/c/2510308/1758182/10583) * [Crypto.com](https://crypto.com/exchange/trade/BTC_USD) * Or see [all exchange options here](https://xyo.network/token/exchange).
**Enter your stake amount**\ Input the amount of XYO you’d like to stake. Rewards come from the [Step Reward Pool](https://docs.xyo.network/xyo-layer-one/architecture/rewards/step-rewards).
**Authorize the staking contract** * Approve the staking contract from your MetaMask wallet. * This grants permission for the staking tool to lock up the selected tokens. **Confirm staking**\ After approval, your XYO Tokens will leave your wallet and be stored securely in the staking contract. ### Staking Lifecycle & Staking Positions Each time you stake, you'll create a new staking position. If at any point you'd like to remove your stake, you can with the three-dot menu on the right of a position. Just know that if you do, **you will be sacrificing your current and future rewards in Genesis Staking!** When stake is removed, you must wait a period afterwards to fully withdraw the XYO Tokens. System staking follows four stages: 1. **Staked** – Your tokens are active and earning rewards. 2. **Stake Removed** – Tokens stop earning rewards and are pending review to ensure no malicious behavior occurred. 3. **Withdrawal Ready** – Tokens are unlocked and available for withdrawal but not yet back in your wallet. 4. **Withdrawn** – Tokens are returned to your wallet. {% hint style="warning" %} Important: Once tokens are in the **Withdrawal Ready** stage, you must actively withdraw them. Leaving them un-withdrawn is like removing money from a savings account and leaving it on the counter—it’s no longer earning and not in your wallet. {% endhint %}
### Rewards Once Genesis Staking ends, rewards will be issued! We'll be consistently updating system staking withnew features that allow you to view your rewards and claim them regularly after Genesis Staking ends. **Visit** [**https://xyo.network/staking**](https://xyo.network/staking) **to start staking.** # System Staking with Mobile Metamask While we always recommend desktop Metamask and a computer for the best experience with [System Staking](/xyo-layer-one/staking/system-staking-guide), it is technically possible to use [Metamask Mobile app](https://metamask.io/download).
To stake, you must visit the staking page **inside the** [**Metamask Mobile Browser**](https://support.metamask.io/configure/wallet/how-to-use-the-metamask-mobile-browser/) **feature.**
Follow the instructions on Metamask's support for accessing the feature: Once you are inside the browser, then visit , and follow the [System Staking Guide](/xyo-layer-one/staking/system-staking-guide) as normal. # How to Claim Your Earned XL1 You earn XL1 for staking! Learn how to redeem it to an XL1 Wallet here. ### Navigate to the Claiming Tab The top left navigation offers multiple views and actions for your stake. The third tab, "Claim", is where you can view your earned XL1 and redeem it to an XL1 Wallet. Currently, only the XL1 Wallet is compatible with XL1 Tokens, because it is compatible with the XYO Layer One Blockchain. The "Bridge" tab will let you "bridge" tokens between an XL1 Wallet and an Ethereum-compatible wallet, transforming your XL1 into Ethereum ERC-20-compatible XL1 Tokens. This is currently in development.
### View Staking Rewards ![](/files/ZpX3svSVi1MYw0zFdrl1) ### Connect XL1 Wallet to Confirm Reward Destination {% hint style="warning" %} This step requires access to Google Chrome so you can use the XL1 Wallet Chrome Extension. {% endhint %} You will need an XL1 Wallet to receive your XL1 staking rewards. At this step, you will connect your XL1 Wallet, which is a Google Chrome extension, to confirm the XL1 Wallet Account address you want to use to receive your rewards. If you need to download XL1 Wallet, [please follow these instructions](/developers/xl1-wallet/get-xl1-browser-wallet).
Once this step is complete, you'll see updated text that states your XL1 Wallet has been confirmed.
### Create and Sign a Claim for Rewards Now that you have confirmed where you want you earned XL1 to go after you claim it, you need to confirm you are the owner of the original wallet you used to stake your XYO Tokens to earn these XL1 Tokens. At this step, you'll see a pop up in your Metamask that asks you to sign with your wallet. It includes numerous details, such as:
Data TypeDataWhat this means
Request Fromhttps://xyo.networkIn the picture below, you'll see "localhost:3000", which is the XYO development team's website when they're testing the flow. In a live setting, this will be our website, which is xyo.network.
TypeClaim ConfirmationThis signature is specifically for confirming your new claim for your staking XL1 Wallet
FromWallet Nickname OR 0x...###This will be your Ethereum wallet. This may appear as a wallet nickname (such as the one shown below in the example) or as the actual wallet address if you have not set a nickname for that wallet before.
To XL1 Address (shortened)0xabc123...789defThis is your XL1 Wallet address for your rewards. It will appear shortened.
XL1 Amount10.0This is the amount of XL1 rewards going to your wallet. In this example, it is 10 XL1.
XL1 Not before block129935This is one half of the expiration time for your request. This request will not be processed before the block listed here.
XL1 Not after block130935This is the second half of the expiration time for your request. This request will not be processed after the block listed here, therefore expiring the request.
To XL1 AddressThis is the same wallet as your XL1 Wallet address above, but full-length. This is required for us so you can not only see the full address, but also so any Web2 or Web3 services needed to process your request have the necessary machine-readable information.
XL1 Amount (Hex)8ac7230489e80000Similar to the second XL1 Wallet address, this is a necessary machine-readable item representing the XL1 rewards you are claiming.
### Redeem the Claim for Rewards In this step, you complete the signed claim you created in Step 2, and receive your XL1 rewards in the XL1 Wallet you confirmed above in Step 1. Once Step 3 is complete, you will receive your XL1 Rewards. Click the button to continue, and you'll see a loading bar showing the attempted transaction. The loading bar displays all upcoming blocks that fall within your [transaction expiration](/xyo-layer-one/architecture/block-structure#transactions), also known as a transactions "Not Before, Not After" timeframe, measured in blocks. When your transaction succeeds, the XL1 rewards will be sent to the XL1 Wallet you designated earlier, and you'll see an alert that the transaction succeeded. Below the loading bar will be a button to view the transaction on the XL1 Explorer website.
# Genesis Staking Explained The launch of System Staking on XYO Layer One comes with a unique opportunity: the Genesis Staking Period. For the first 30 days, early stakers can earn from a special reward pool of over 100 million $XL1, on top of the natural rewards generated by the network itself. Visit to stark staking!
This pool grows in two ways: * **Block Rewards:** Each new block contributes a portion of rewards to the [step reward pool](/xyo-layer-one/rewards/step-rewards). * **Community Milestones:** As more $XYO is staked, new tiers unlock and additional $XL1 is added to the pool. ### Genesis Tiers * **Tier 1 — 0 $XYO Staked** * We've already boosted the pool with $100M XL1! * **Tier 2 — 500M $XYO Staked** Once the community reaches 500 million $XYO staked, XYO's total pool boost reaches 150M $XL1! * **Tier 3 — 1B $XYO Staked** Once the community reaches 1 billion $XYO staked, XYO's total pool boost reaches 200M $XL1! ### Why Timing Matters * **Earlier you stake, the better.** * The earlier you stake, the larger amount of step rewards you receive! * **Longer you stake, the better.** * The longer you stake, the bigger your step rewards are, as well! * **Your percentage of the total staked supply defines your share of the rewards.** * The more you stake, the higher your percentage of total stake is. This percentage also drives how much of the pool you receive. * **Large or early stakes capture a proportionally higher return.** * When you stake early, you can get larger percentages of early steps' rewards! This means your rewards at the end of Genesis will be larger. ### Start Staking! Genesis Staking is designed to boost the growth of XYO Layer One, and reward some of our earliest system stakers. Start staking at # Rewards XYO Layer One implements two primary reward mechanisms to incentivize participation: **Block Rewards** and **Step Rewards**. While both reward systems serve complementary roles, they differ in distribution timing, frequency, and intent.
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Block RewardsBlock Rewards are issued every new Block. The reward is split between two parties: The Block Producer and the Step Reward Pool./files/SOJR456HuiQ1d195JOBa/files/S6V6poyrLXNOibpZ4SWg/pages/Kmd0tuNpjA2nZrNSTLVw
Step RewardsStep Rewards issue rewards at designated "Steps", following the Step Hash feature of XYO L1. They are designed for incentivizing participation, so the majority of the rewards go to Validator Nodes and System Stakers. /files/wANQPDlM6OVHWDPoHIYZ/files/FZqZ8THyjIYKI0tzAb9L/pages/lnHADsFVvI5erA6V4lu2
# Block Rewards XYO Layer One incentivizes active block production through Block Rewards. These rewards are granted to block producers every time they successfully create a new block. ### Key Features * **Earned by:** Block Producers * **Distribution:** Directly assigned to the producer's configured address * **Frequency:** Every block * **Purpose:** Encourages ongoing block creation and secures the network ### Reward Transfer Block rewards are split between: * **Producer Address:** A configurable address that receives part of the reward. In most cases, this address is the block producer's address. * **Step Reward Pool:** The remainder is added to the growing Step Reward Pool This dual allocation supports both immediate incentives and future network-wide participation through Step Rewards. # Step Rewards Step Rewards in XYO Layer One are designed to promote sustained participation by rewarding validators, producers, and passive stakers at specific milestone blocks. ### Key Features * **Earned by:** Block Producers, Chain Validators, Pending Transaction Validators, System Stakers * **Distribution:** From the Step Reward Pool at milestone blocks * **Purpose:** Incentivizes long-term protocol engagement and decentralized network health * **Triggers:** On Milestone Blocks (Step Triggers) ### Reward Pool Growth Over Time * Every block contributes a portion of its reward to the Step Reward Pool. * Since distributions only occur at milestones and never deplete the pool fully, the reserve grows over time. ### Proof of Participation * Participants can submit a participation transaction to become eligible for Step Rewards. * These transactions prove activity and put stake at risk for slashing, increasing accountability. # Comparison Table ### Comparison Table | Feature | Block Reward | Step Reward | | ------------------- | ---------------------------- | ------------------------------------------- | | **Earned By** | Block Producers | Block Producers, Validators, System Stakers | | **When** | Every block | At milestone block numbers | | **Purpose** | Incentivize block production | Incentivize long-term participation | | **Distribution** | Direct to producers | From Step Reward Pool | | **Decay Mechanism** | Yes, decreases per step | Naturally, as block rewards decay | ### How They Work Together * **Block Rewards** ensure steady block creation and directly incentivize producers. * **Step Rewards** engage other roles like validators and system stakers, promoting long-term network health. * This dual-reward system avoids centralization and ensures broad participation across the ecosystem. # XYO AI SDK - Quick Start ## Install for Claude Code Use Claude Code's built-in plugin marketplace to install the XYO skills, then build a full XL1 dApp from a single prompt. > If you use a different AI coding agent (Cursor, Codex, Copilot, Windsurf, etc.), please follow the [skills.sh](https://www.skills.sh/) instructions with a CLI instead. This page covers the Claude Code–specific install path. ### Before you start You'll need: * [**Claude Code**](https://claude.com/product/claude-code) installed on your machine (desktop app or CLI — the marketplace flow works the same in both) * **An X/Twitter account** to request testnet tokens later from the XL1 Token Faucet * **Some time** — the install takes a few minutes seconds; the example prompt was crafted by our XYO developers to build an entire dApp in about an hour. ### 1. Install the XYO Skills If you use just the desktop UI, please skip the CLI instructions and instead move to the "Claude Desktop app" Instructions. #### **Claude Code CLI** ``` # Add the marketplace /plugin marketplace add XYOracleNetwork/xyo-claude-plugin # Install the XL1 skill stack /plugin install xyo-skills ``` #### **Claude Desktop app** The `/plugin` slash commands aren't available in the Claude Code desktop app — use the **Customize** panel instead: 1. Click **Customize** in the left sidebar. [![Customize in the sidebar](https://github.com/XYOracleNetwork/xyo-skills/raw/main/docs/images/claude/install/01-customize.png)](https://github.com/XYOracleNetwork/xyo-skills/blob/main/docs/images/claude/install/01-customize.png) 2. Under **Personal plugins**, click the **+** button. [![Personal plugins add button](https://github.com/XYOracleNetwork/xyo-skills/raw/main/docs/images/claude/install/02-personal-plugins-add.png)](https://github.com/XYOracleNetwork/xyo-skills/blob/main/docs/images/claude/install/02-personal-plugins-add.png) 3. Choose **+ Create plugin**. [![Create plugin menu option](https://github.com/XYOracleNetwork/xyo-skills/raw/main/docs/images/claude/install/03-create-plugin.png)](https://github.com/XYOracleNetwork/xyo-skills/blob/main/docs/images/claude/install/03-create-plugin.png) 4. Choose **Add marketplace**. [![Add marketplace submenu option](https://github.com/XYOracleNetwork/xyo-skills/raw/main/docs/images/claude/install/04-add-marketplace.png)](https://github.com/XYOracleNetwork/xyo-skills/blob/main/docs/images/claude/install/04-add-marketplace.png) 5. In the URL field, paste [`https://github.com/XYOracleNetwork/xyo-claude-plugin`](https://github.com/XYOracleNetwork/xyo-claude-plugin) and click **Sync**. ### 2. Create a Folder to Your Demo Output Claude will ask you for a folder or destination for the output of your prompt. Create a new folder on your computer. We recommend creating a folder named `xyo-ai-sdk-prediction-market-demo` . You'll use this new folder on the next step. ### 3. Open a new Claude Code session For Claude Code to pick up the newly installed skills, **open a fresh session**. In the desktop app, open a new tab in the same project. In the CLI, exit and re-launch `claude` in the same directory. This step matters — Claude Code only scans for skills at session start. Make sure you select the new folder you just created so Claude builds your demo there!
### 4. Run the Prediction Market Prompt This prompt is designed to run a prediction market-esque dApp on XYO Layer One's Sequence testnet. Note: This prompt is lengthy, because we added lots of extra details to help explain what's happening on XYO Layer One. Feel free to give it a read! You'll get to review some of the phrases we use to trigger behaviors in the XYO AI SDK to keep it optimal and efficient. Paste this prompt into the new session: {% code overflow="wrap" %} ``` Build a two-player number-prediction guessing game called "XYO Prediction Market dApp" on XL1 (Sequence testnet, not mainnet). Use commit-reveal so the secret number is cryptographically locked and hidden before the player guesses and can't be changed afterward. Player 1 is a backend bot: when a round starts it randomly picks a secret 1–5 and commits hash(secret + salt) on-chain — never reveal or hint at the number anywhere in the UI until the round settles. Player 2 is the human in the UI, who submits a guess; record the guess, the reveal, and the outcome (correct/incorrect) on-chain. Sign all moves on the backend from a mnemonic in a generated .env (account 0 = bot, account 1 = human) — no browser wallet. Do all chain indexing on the backend: walk finalized blocks from a floor block captured at build time, and make sure the indexer actually retrieves the off-chain payloads it wrote — fetch them from the same datalake you inserted into (a RestDataLakeViewer on that endpoint), not via the gateway block viewer, which won't resolve them. The frontend only reads the backend's REST API and presents current round state, round detection, and history. UI: anyone can browse past rounds and results without a wallet; the player can start and play rounds. The moment a round is started or a guess is submitted, show a "waiting to be recorded on-chain" state (with the tx) instead of re-showing the buttons, so there's no double-submit. Display both accounts' addresses and live XL1 balances, auto-refreshing every few seconds so I can watch faucet funding land — and make clear BOTH accounts need funding (the bot pays to commit/settle, the human to guess) via the XL1 Token Faucet on Twitter/X. On every settled round, include a "provably fair" panel that recomputes hash(secret + salt) in the browser, checks it against the on-chain commitment, and gives direct block-explorer links to each on-chain record (commit, guess, and the reveal payload showing the secret + salt, and the settlement/outcome). Add a short explainer for someone who knows what prediction markets are, like Polymarket/Kalshi, but may not know the inner workings of developing on XYO. When an action fails, show a readable panel with labeled sections — a plain-language summary, the affected account, the balance and fee involved, and how to fix it — plus the complete, untruncated raw error in a collapsible block with a copy button. To finish, please run the dApp on localhost:3001 ``` {% endcode %} Claude pulls from the skills automatically: * `xl1-scaffold` lays down a pnpm monorepo with a React frontend, an `xl1-service` backend, and a shared TypeScript library * `xl1-patterns` wires up the commit-reveal flow and splits the chain indexing between browser and service * `xl1-knowledge` derives accounts zero and one from the generated mnemonic and constructs the gateway * `xyo-knowledge` shapes the Bound Witness payloads that go on the sequence * `xy-toolchain` and `xy-development` apply the ESLint, TypeScript, and Vitest baseline ### 5. Fund Your Wallet & Wait for the Build to Complete Once the demo is done building, you'll need to fund the local wallets that are generated for the demo. We recommend downloading the XL1 Wallet, so you can fund them on the fly. 1. [Download & Create an XL1 Wallet](https://chromewebstore.google.com/detail/xl1-wallet/fblbagcjeigmhakkfgjpdlcapcgmcfbm) 2. [Request Sequence Testnet Tokens](https://x.com/xl1faucet) (The instructions are pinned on this X Account) 3. Go grab a snack! The demo normally takes about 30-40 minutes to build on our computers, so now's the perfect time to go watch an episode of your favorite television show, grab a quick coffee, or find a late-night snack! ### 6. Fund the New dApp Wallets & Test the dApp! When the build finishes, the UI displays the **wallet addresses that can play your dApp**. To submit transactions to the XL1 sequence (testnet), that wallet needs test tokens. Copy the address, then use your newly funded XL1 wallet from step #5 to manually send 1-2 testnet XL1 on Sequence to the wallet addresses on the UI. Due to the daily cap on the XL1 Faucet, we don't recommend sending the 100 testnet XL1 to the dApp wallets, just to your separate wallet so you can fund test dApp wallets on the fly. Once you have sent the tokens using the XL1 Wallet UI, refresh the dApp. You're ready to play! Part of the fun of creating a dApp with the XYO AI SDK is that you may end up with slightly different versions, designs, and interfaces depending on how your AI makes decisions that lead to a final game! Here's an example of what we've seen when we've run this in the past:
### Troubleshooting **The plugin \[XYO Skills] doesn't appear after install.** Make sure you opened a new session — Claude Code only scans for skills at session start, not mid-session. **Claude completed the prompt, but the preview of the dApp isn't appearing.** If you see the image below, you may have to close and reopen the preview. You can reopen the preview using the top right button for "Views" and selecting "Preview". If you'd like to use the dApp, we recommend opening the localhost website on Google Chrome to check out the new dApp you have created! Normally it goes to .
# API An API for accessing XYO Layer One data is not yet available. We’re actively working on releasing one, so developers can begin stress testing the network and experimenting with dApps. Stay tuned for updates! # COIN COIN is a mobile platform developed by XYO that lets users take part in the decentralized infrastructure of the XYO ecosystem. By using the app, participants contribute real-world data that supports XYO’s Proof of Location (PoL) network and earn COIN as rewards. These rewards can be redeemed for XYO tokens, other digital assets, or physical items. Join XYO and Start Earning!
**COIN and XYO’s Mission:** As data-producing nodes, COIN connects everyday users to [XYO’s DePIN](/about-xyo/xyo-101/the-xyo-ecosystem). By collecting and verifying real-world data, COIN allows any user to benefit from the tokenomics of XYO: as they create data, they are rewarded for their efforts. The majority of COIN's users redeem for $XYO, the DePIN token of XYO. Through COIN, users can earn rewards and simultaneously strengthen the XYO Ecosystem, which expands the reach and reliability of the XYO ecosystem. # XYO Technology in COIN ## XYO Concepts in COIN The COIN mobile app is more than just a gamified data-collection tool. It is a gateway into the powerful world of XYO, a decentralized data protocol designed to validate and verify real-world data. If you are new to COIN or curious about how your interactions support a broader ecosystem, this guide is for you. #### How COIN Uses XYO The COIN app is one of the easiest ways to participate in the XYO Network. By using the app, you help collect and validate data in a decentralized system. Your actions support the network while you earn rewards. Here is how some of the XYO concepts show up inside the app: #### Proof of Location When you Geomine with COIN, you are contributing to Proof of Location, a cryptographic method of verifying that a person or device was at a specific place at a specific time. * Every tile you mine is a data point. * Witnessing nearby devices strengthens your location claim. * Together, this builds a secure record of where things happened. #### Witnessing Witnessing happens when your device detects and validates another user's actions nearby. * It is like being a digital "notary" for someone else's proof of location. * The more you witness others, and are witnessed, the stronger the data becomes. * Witnessing can lead to bonus rewards, especially during sweepstakes or daily prize entries. #### Sentinels and Bridges These are terms used in the broader XYO Network but also apply to COIN functionality. * Sentinel: A device or data source that detects and observes real-world conditions, like a phone, sensor, or beacon. * Bridge: A node that relays and verifies data from sentinels to the XYO blockchain. When you use the COIN app, your phone often acts as both, detecting location and sending proof to the network. #### Functional NFTs and COIN Profiles In the COIN ecosystem, NFTs do more than just look interesting. They work. * COIN Profiles are functional NFTs that boost your earnings and personalize your in-app experience. * Custom Pickaxes, Helmets, and Badges offer percentage-based rewards. * Once minted, these NFTs can be stored in your own wallet or a shared one. #### Learn & Earn Campaigns COIN features periodic Learn & Earn modules that let you explore XYO and partner projects. * Complete short lessons or quizzes to deepen your understanding. * Earn COIN, tokens, or NFTs as rewards. * These often connect back to the core XYO concepts you are already using. #### XYO Layer One The future of COIN is tightly integrated with XYO Layer One, a new blockchain for data-centric applications. * Lower gas fees for actions like minting NFTs. * Easier interoperability with partner applications. * Enhanced tools for developers and stakers. This will make your COIN data contributions even more powerful and potentially more valuable. # Case Studies Since 2019, COIN has helped millions of users earn and redeem XYO Tokens—unlocking everything from groceries and gifts to mortgage payoffs and emergency rent. Our case studies highlight how COIN makes crypto accessible, with real stories of financial impact across over 100 countries. No crypto wallet required—just real results. # 2021 Paying a 30-Year Mortgage with COIN ### Summary Meet COIN User T.T. He is a Software Engineer working from home in the United States, and he has been able to earn enough with COIN app to completely finish paying his 30-year mortgage. On May 27th, 2021, the COIN he redeemed for XYO Tokens was valued at $70,108.74 USD. Read Study ### Highlights * By the time of the case study, his COIN-derived portfolio was valued at **$70,108.74 USD**. * At the time of his initial survey, it was worth **$47,415.81 USD**, which was enough to **pay off the remaining balance on his 30-year mortgage**. * In just **2 months**, the portfolio increased by **$22,692.93 USD**, a **48% growth**, with **no additional cost or effort**. * Across all redemptions, T.T. earned **6,059,528 XYO**, which grew **+2,754.21%** in value overall. * His earliest redemption of **10,070 XYO at $0.002567** grew from **$25.85 → $116.51**. * His largest single redemption: **876,058 XYO**, originally worth **$180.03**, later worth **$10,135.99**—a **5,430.17% increase**. ### T.T.'s Feedback on COIN & XYO
# 2021 500 Active User Case Study ### Summary The biggest report on the app that has transformed people’s financial futures by building a low-risk crypto-portfolio. In early August 2021, we surveyed and analyzed data from 500 active COIN users to learn more about how COIN has impacted their lives, both financially and generally. Read Study ### Highlights * 500 Users Surveyed * 125+ Countries Represented * 1M+ Active Geominers * Average user spent 698.77 days (nearly 2 years) using COIN * Users redeemed 933,697,010 XYO Tokens * **These tokens were worth over 14 million USD!**
### User Quotes * "We bought our first car together, with a $15,000 down payment. All paid for by COIN." — *N.B., Canada* * "It's made me more active and given me the ability to earn crypto while I do my job." — *Gary Jones, UK* * "I was hesitant to touch my normal savings. COIN let me explore crypto with no risk." — *Lee, Ireland/Italy* * "I sold during the price jump and reinvested. Now my portfolio is worth nearly $20,000." — *Joshua S, Virginia, US*
# 2025 Multi-User Case Study After 1200% XYO Increase ### Summary In September 2024, COIN users who redeemed XYO at a price of approximately **$0.0034** saw an extraordinary surge in value, with the price climbing to around **$0.04419** by December 3rd, marking a **1200% increase**. This remarkable price jump meant that the initial $200,000 worth of XYO redeemed by over 7,000 users ballooned to **a collective value of over $2,400,000 at the peak.** Read Study
### Highlights * **1200% price increase**: XYO surged from **$0.0034 in September 2024** to **$0.04419 by December 3, 2024**. * Over **$200,000 worth of XYO redeemed** by COIN users in September became worth **$2.4 million** at the December peak. * One COIN user used XYO earnings to make a **$30,000 down payment on a home**. * Another saw their holdings grow from **$3,000 to $24,000** by holding through the surge. * One user cashed out **$700 in December** after expecting just $70—just in time for the holidays. * **Mark**: Bought a home with COIN-powered XYO earnings.
* **Jesse**: Grew his holdings to over **$10,000**, sharing COIN with UPS drivers. * **Justin**: Grew from **$3K to $24K** by simply HODLing.
* **April**: Paid rent in a moment of crisis using XYO. * **Moises**: Gained over **400%** while having fun with Geomining and games. # Introduction **Welcome to the XYO Layer One Developer Documentation!** As a developer, you’re invited to build with us on the [XYO Layer One Blockchain](/xyo-layer-one/what-is-xyo-layer-one). Whether you're adding blockchain verification to device data or deploying early versions of test dApps, our documentation will guide you through connecting to our Testnet and beginning your journey with XYO. To begin, you’ll need XL1 Testnet tokens, which let you interact with the network, test transactions, and validate application behavior in a risk-free environment. These tokens are available for developers participating in the early Testnet phase. Inside, you’ll find step-by-step instructions to: * Connect to the Testnet network * Deploy contracts and data validators * Work with sample data from Bound Witnesses * Provide feedback and contribute improvements XYO Layer One is designed for real-world verification and decentralized trust. Use these resources to start testing, building, and exploring. Additional features, programs, and tools will be released as the network develops. # XL1 Wallet The XL1 Wallet is a browser extension (similar to MetaMask) that enables users to securely interact with the XYO Layer One blockchain. It stores XL1, the network’s native gas and utility token, and enables seamless use in transactions, smart contracts, and dApps.
**Key Features:** * Secure Token Storage – Manage your XL1 safely * Layer One Integration – Direct connection to the blockchain * Gas & Payments – Pay fees, execute contracts, and more * Simple Interface – Friendly for both Web3 beginners and pros * Dark Mode & Light Mode – Style your wallet your way Get the Wallet Have the wallet and ready to use it? Check out wallet instructions [here](/developers/xl1-wallet). # Get XL1 Browser Wallet The XL1 Wallet is a browser extension (similar to MetaMask) that enables users to securely interact with the XYO Layer One blockchain. It stores XL1, the network’s native gas and utility token, and enables seamless use in transactions, smart contracts, and dApps. ### **Installation and Setup** 1. **Install the XL1 Wallet** * Navigate to the [XL1 Wallet Extension page](https://chromewebstore.google.com/detail/xl1-wallet/fblbagcjeigmhakkfgjpdlcapcgmcfbm?pli=1) on the Chrome Web Store. * *Don't have Google Chrome? Download it* [*here*](https://www.google.com/chrome/)*.* * Click on **"Add to Chrome"** to install the XL1 Wallet in your browser as an extension. ![](/files/g0EP7fT8qSDKAzJ0K698) * Once installed, click on the XL1 Wallet icon in your Chrome's extension pop-up to open it. **You can also "pin" the extension so it permanently remains in your toolbar.** ### **Creating a New Wallet** If you need instructions on **importing a wallet you already own**, please see [this guide](/developers/xl1-wallet/get-xl1-browser-wallet/how-to-import-an-xl1-wallet). {% tabs %} {% tab title="Set Password" %} **Set a Password** This password will secure your wallet and you will need it moving forward. 1. Enter a strong, **unique** password 2. Confirm your password by entering it again. 3. Click on **"Create Password"**. ***Important!** Because this is an extension, clicking out to a 3rd party password tool may lose your progress. **Be sure to write down your password when you set it.***
{% endtab %} {% tab title="Create or Import" %} **Create a New Wallet or Choose to Import a Wallet You Already Own** If you do not have an XL1 Wallet yet, select "Create New Wallet". If you have a wallet already and need to import it (perhaps on a new device or browser), select "Import Existing Wallet" and please see [this guide](/developers/xl1-wallet/get-xl1-browser-wallet/how-to-import-an-xl1-wallet).
{% endtab %} {% tab title="Secure Your Wallet" %} **Secure Your Wallet** * Carefully write the wallet seed phrase down. This step is **crucial.** This seed phrase **are the keys to your wallet and funds!** * **If you lose your wallet, these words are the only way to get the wallet back. You can** [**import**](/developers/xl1-wallet/get-xl1-browser-wallet/how-to-import-an-xl1-wallet) **them into a new wallet.** * **Keep this information secure and do not share these words with anyone!** * Confirm that you have saved the wallet seed phrase.
{% endtab %} {% endtabs %} # How to Import or Replace an XL1 Wallet If you already have an XL1 Wallet mnemonic, or seed phrase, you can import it into the XL1 Wallet UI to restore your XL1 Wallet. ### Import XL1 Wallet If you just downloaded the wallet, you'll view this page:
Click "Import Existing Wallet" to get to the next step. ### Replace XL1 Wallet {% hint style="danger" %} **Warning:** This will action will make you lose access to the wallet you previously had. You can restore it with the original wallet's seed phrase, but **you** **must have the seed phrase of a wallet to restore it.** **Please navigate these next steps carefully.** {% endhint %} First, navigate to the settings of your wallet. Click the three dots in the top right, and then select "Seed Phrases".
Next, select "Replace Recovery Phrase".
Finally, paste your new seed phrase into the space, and confirm it with the `Replace` button in the bottom right.
# Request XL1 Testnet Tokens To interact with the XYO Layer One Testnet, you’ll need XL1 Test Tokens. These tokens are used only for testing and have no monetary value. They allow you to pay gas fees, test transactions, and experiment with dApps during the public beta. ### Steps to Request Tokens 1. **Install the XL1 Wallet**\ Follow the [XL1 Wallet Instructions](/developers/xl1-wallet/get-xl1-browser-wallet) and create a wallet address. 2. **Submit the Application Form**\ Provide your XL1 wallet address by completing the [XL1 Test Token Application Form](https://docs.google.com/forms/d/e/1FAIpQLSfny40JGKGl0y2cZeQrp70t6FImoJ2rkrWqmeHtA75EvbmSPQ/viewform?ref=xyo-network.ghost.io). 3. **Wait for Distribution**\ Tokens are distributed manually. Please allow up to **7 business days** for processing, or longer wait times during busy times for the XYO Team. 4. **Start Testing**\ Once received, your XL1 Test Tokens will appear in your wallet, ready for use in Testnet dApps and transactions. ### Notes * Tokens are for **Testnet use only** and carry **no real-world value**. * Feedback and bug reports can be submitted through the [XYO GitHub Issues page](https://github.com/XYOracleNetwork). # Run a Local Blockchain & Block Producer This guide helps developers get hands-on with the XYO Layer One Protocol by walking through how to launch a fully local blockchain environment — including a working block producer and connected test wallet. Whether you prefer working with React or Node.js, you’ll be directed to the version that suits your workflow. You’ll spin up a local node, simulate real transactions, and interact with the blockchain using test tokens, all without touching an external testnet or using real funds. This guide is ideal for anyone looking to explore smart contract logic, experiment with transactions, or better understand how XYO Layer One handles execution and validation behind the scenes.
Install the XL1 Wallet/files/kRJZy7j6ZPlf4F4QkVkZ/pages/odT4iQbFnspmvf0hFl96
/files/xNvK3q5SM6JpXhMpNQl0/pages/iaJmCdBhIQXKGT98d9Kd
Coming Soon!/files/hW9MPHjLGNdcyCjWhpQv
# Run with React This tutorial walks you through setting up and **running a local blockchain with a single block producer** using the XYO Layer One Protocol. You’ll use a React-based sample app, connect it to a test wallet, and simulate transactions using locally generated test tokens. This setup is fully self-contained and requires no access to an external testnet. It’s a great starting point for developers looking to: * Explore how XL1 handles smart contract interactions * Understand the local development experience before deploying to public infrastructure * Test without spending real tokens or revealing production credentials ### Prerequisites Before you begin, make sure you have the following installed: * **Node.js version 22 or higher** * **Google Chrome browser** * [Download Google Chrome](https://www.google.com/chrome/) if needed * **NPM** * **Basic knowledge of React & Terminal / Command Line** ### Terminal #1: Run the Sample Website #### Clone the Sample Repository {% code title="command" %} ```bash git clone https://github.com/XYOracleNetwork/xl1-samples-react.git cd xl1-samples-react ``` {% endcode %} #### Install Dependencies {% code title="command" %} ```bash npm install ``` {% endcode %} #### Start the React Sample {% code title="command" %} ```bash npm run serve ``` {% endcode %} This launches a sample website, usually on , unless that port is already in use.
{% hint style="info" %} If you see a red alert regarding the "XYO Client", **you can still continue with no issue!** This alert is used to inform developers who are looking to debug the sample or dive into the details of the code. {% endhint %}
### Terminal 2: Run the Local Blockchain Producer In a **new terminal window**, start the local blockchain producer. If you are not in the sample already, be sure to run `cd xl1-samples-react` to get your second terminal into the correct repository with before attempting to start the blockchain producer. Once you're inside the repository, run the following command: {% code title="command" %} ```bash npm run start-cli ``` {% endcode %} This command does two important things: * It launches a local blockchain with a single block producer * It generates a unique test wallet and outputs a seed phrase (mnemonic) Example output: {% code title="output" overflow="wrap" lineNumbers="true" %} ``` [Producer] No wallet mnemonic specified! [Producer] Using randomly generated mnemonic: glue nominee color invest rare middle cat barrel across devote rival beach device guitar punch item throw barely address dad tag waste shiver shoe ``` {% endcode %} {% hint style="warning" %} **Reminder:** This wallet is automatically pre-funded with *test tokens* on your local blockchain. These tokens have no real value and are for development use only. {% endhint %} After this, you'll see the following in the sample website:
Congrats on starting your pre-funded test wallet! As you can see above, your next step will be **setting up your XYO Layer One (XL1) Wallet!** You can also click the "Done" button on any of the steps to remove the alerts for the steps you've already completed. ### Connect the Pre-Funded Test Wallet #### 1. Install the XL1 Wallet Extension Install the Chrome extension from the Web Store: [XL1 Wallet - Chrome Extension](https://chromewebstore.google.com/detail/xl1-wallet/fblbagcjeigmhakkfgjpdlcapcgmcfbm) {% hint style="warning" %} If you already have a personal wallet that you'd like to keep separate from your development test environment, we recommend using a [**second Chrome profile**](https://support.google.com/chrome/answer/2364824)**.** Profiles have unique extensions, so any wallets on a second profile will be kept separate from your personal Chrome profile. {% endhint %} #### 2. Import the Seed Phrase Copy the mnemonic (seed phrase) from your terminal and paste it into the XL1 Wallet. This links the extension to your local blockchain identity. *Want a walkthrough on importing or replacing a seed phrase?* [*See this guide.*](/developers/xl1-wallet/get-xl1-browser-wallet/how-to-import-an-xl1-wallet) {% hint style="warning" %} **Reminder:** Never reuse this seed phrase outside of development. {% endhint %} Once your wallet has been imported, you should see XL1 Tokens appear in the "Localhost" version of your test wallet. It will look something like this:
The sample website will also update, recognizing that your wallet is detected and ready to make a test transaction.
### Initiate a Test Transaction Now, click the “Submit Transaction” button! When you click the “Submit Transaction” button in the sample app, it triggers the following process: 1. The Wallet creates and signs the transaction. 2. The signed transaction is submitted to your local producer, which is already running in Terminal #2. 3. The local producer includes the transaction in a newly created block. 4. This block is then added to the blockchain and viewable via the Explorer. **The XL1 Wallet will pop up and request your approval** to sign the transaction using the private key derived from your imported seed phrase.
### Preview Transaction Once you click “Authorize”, your transaction will be attempted. You'll see a preview of the payloads you're including in your transaction. You may notice two generated icons for "On-Chain Payloads" and another two in "Referenced Payloads". These icons are generated from the unique payload and are a visual representation of a payload, similar to the generated purple and yellow icon representing my wallet address. This means that no two will ever be exactly the same! The XYO Team uses [Blockies](https://github.com/download13/blockies) to generate the wallet address avatar, and identicons for payloads.
You can use the "info" icon button to see the JSON of each payload.
Click "Approve" to attempt the transaction. If successful, you’ll see a success alert in the wallet UI. #### Successful Transaction After a short period of loading, a successful transaction will look like this:
{% hint style="danger" %} IMPORTANT: The link to see the transaction on Explore inside the wallet **will not work.** This is because you are running a test environment, and the wallet is designed to take real users who are on a published website to our Explore page. **You can still see the transaction on Explore by using the link provided in the sample website.** {% endhint %} If your transaction failed, please let us know! We'd love to learn more about the bug you experienced. You can report the bug [here](https://github.com/XYOracleNetwork/xl1-issues). Follow the instructions below to view your transaction. ### View your Transaction on Explorer Once your transaction is complete, you can view it on Explore! Use the “View Transaction” link shown on the **sample website interface** after submitting. This opens the Explore UI **connected to your local chain**.
You’ll be able to: * View the transaction hash * See your wallet address as the sender * Confirm the signature * Verify the block ID that includes your transaction * Optionally see reward-related metadata (even if reward = 0)
# Run with Node.js This tutorial walks you through setting up and **running a local blockchain with a single block producer** using the XYO Layer One Protocol. This guide will have you use the command line to create and pre-fund a test wallet, run a block producer, and simulate transactions using locally generated test tokens. *This setup is fully self-contained and requires no access to the external testnet, "Sequence".* It’s a great starting point for developers looking to: * Explore how XL1 handles smart contract interactions * Understand the local development experience before deploying to public infrastructure * Test without spending real tokens or revealing production credentials ### Prerequisites Before you begin, make sure you have the following installed: * **Node.js version 22 or higher** * **Google Chrome browser** * [Download Google Chrome](https://www.google.com/chrome/) if needed * **Yarn** * **Basic knowledge of Terminal / Command Line** ### Run the Sample #### Clone the Sample Repository {% code title="command" %} ```bash git clone https://github.com/XYOracleNetwork/xl1-samples-nodejs cd xl1-samples-nodejs ``` {% endcode %} #### Install Dependencies {% code title="command" %} ```bash yarn install ``` {% endcode %} #### Start the Sample {% code title="command" %} ```bash yarn runner ``` {% endcode %} This command immediately triggers two important things: * It launches a local blockchain with a single block producer * It generates a unique test wallet and outputs a seed phrase (mnemonic) It will output something that looks like the following:
The next section will say something like the following:
This is the genesis block is the first block your block producer is creating. Once it is created, you've created your own fully local and sovereign XYO Layer One Blockchain! This genesis block also gives your producer wallet address the initial block reward for starting the chain, **which becomes the tokens you can spend for transactions.** {% hint style="info" %} Any blocks you create will not be on the Testnet "Sequence", but instead on your local blockchain. {% endhint %} Once your block producer is ready, your first transaction occurs:
### Complete a Test Transaction A transaction is created for you, is added to a created block, and is added to your blockchain. The process goes: 1. The Wallet creates and signs the transaction. 2. The signed transaction is submitted to your local producer, which is already running. 3. The local producer includes the transaction in a newly created block. 4. This block is then added to your new local XYO Layer One Blockchain and viewable via the Explorer. You may see a few attempts at this stage, like the example below:
#### Successful Transaction Once the transaction is successful, you can view it on Explore using the link provided in the command line. You’ll be able to: * View the transaction hash * See your wallet address as the sender * Confirm the signature * Verify the block ID that includes your transaction * Optionally see reward-related metadata (even if reward = 0) # Tools Explore the essential tools powering the XYO Layer One ecosystem. From inspecting blocks to managing your tokens, these tools make it simple to use XYO Layer One. Explore the essential tools powering the XYO Layer One ecosystem. From inspecting blocks to managing your tokens and network participation, these tools make it simple to explore, transact, and build within XYO Layer One. --- [Next Page](/llms-full.txt/1)