> For the complete documentation index, see [llms.txt](https://docs.xyo.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xyo.network/xyo-layer-one/dual-token-model/xl1-token.md).

# 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.md), a blockchain designed to support the [XYO ecosystem](/about-xyo/what-is-xyo.md). $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.md) 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.md) 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.md)
* 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