Deep Dive
1. Dual-Token Architecture (29 July 2025)
Overview: XYO introduced a dual-token model where staking XYO earns XL1, the gas token for its Layer-1 chain. This reduces XYO’s circulating supply while incentivizing network participation.
The upgrade separates governance (XYO) from transactional utility (XL1), with XL1 burned per transaction to manage inflation. Mainnet launch is slated for Q3 2025, requiring node operators to update software for staking compatibility.
What this means: This is bullish for XYO because staking locks supply, potentially increasing scarcity, while XL1’s burn mechanism could balance long-term tokenomics. (Source)
2. Layer One Gitbook Launch (15 July 2025)
Overview: XYO released initial technical documentation for its Layer-1 blockchain, detailing consensus mechanisms and node operations.
The Gitbook outlines Proof of Location/Origin protocols and data validation workflows. While still in draft form, it signals progress toward mainnet readiness.
What this means: This is neutral for XYO because while transparency boosts credibility, incomplete documentation leaves technical risks unresolved until finalization. (Source)
3. Testnet Sequence 2.0 Beta (13 July 2025)
Overview: The updated testnet introduced scalability improvements and a NodeJS SDK for developers building location-based dApps.
Developers can simulate geospatial data workflows and stress-test network throughput. Beta participants receive test XL1 tokens to experiment with smart contracts.
What this means: This is bullish for XYO because robust developer tools attract more ecosystem projects, increasing real-world use cases. (Source)
Conclusion
XYO’s codebase shifts toward a structured Layer-1 ecosystem, combining tokenomics adjustments with developer-focused upgrades. The dual-token model and testnet refinements aim to balance scarcity with utility, while the Gitbook signals growing technical maturity.
How will mainnet performance impact XYO’s role in the DePIN sector post-launch?