In this post:
- DePIN project XYO introduces a new Layer 1 blockchain purpose-built for DePIN, RWA, AI, and real-world data.
- A new consensus model, Proof of Perfect, optimizes speed and decentralization.
- XYO unveils a dual-token system, pairing the XYO governance token with a new utility token, XL1.
XYO, one of the oldest DePIN projects in Blockchain, has launched its own purpose-built Layer 1 network.
The new chain is designed specifically for DePIN (Decentralized Physical Infrastructure Networks), real-world assets (RWAs), and AI-training data. These are all industries where fast, validated real-world information is essential.
Founded in 2018, XYO was one of the earliest blockchain projects to focus on validating real-world data at scale, even before terms like DePIN entered the Web3 lexicon. With over 8 million nodes and technologies like Proof of Location and Proof of Origin, the network powers use cases from asset tracking to interactive gaming.
Proof of Perfect: a new consensus model built for high-speed, high-integrity networks
At the heart of XYO’s new Layer 1 is a consensus algorithm called Proof of Perfect. Rather than relying on energy-intensive or slow consensus methods, Proof of Perfect uses a ranking system where nodes agree on the “most perfect” chain tip to extend, based on criteria like validity, recency, and protocol alignment.
This system removes the need for nodes to process an entire blockchain history to achieve consensus, vastly increasing transaction speeds. In addition, the Layer 1 implements “lookback windowing,” a method that minimizes storage requirements by allowing nodes to actively track only recent transactions while archiving older data for future access.
These innovations are critical for supporting large-scale DePIN, AI, and RWA applications, where heavy, real-time data loads have previously overwhelmed some blockchain infrastructure.
Introducing a dual-token economy: XYO and XL1
To complement its Layer 1 launch, XYO is rolling out a new token structure: a dual-token system featuring the original XYO token and a newly introduced utility token, XL1.
The XYO token is set to retain its role as the deflationary governance, staking, and long-term value asset. Meanwhile, XL1 will power the network by acting as their high-frequency transaction token — handling gas fees, base fees, rewarding network participation and more.
In a novel mechanism, users can stake XYO tokens to earn XL1, which will be necessary for participating in Layer 1 operations. This design is intended to align incentives between governance and network utility, while locking a significant portion of XYO’s circulating supply into the blockchain’s security and governance frameworks, staking participants will be recognised for assisting the ecosystems efficiency and reliability.
By decoupling governance and day-to-day utility, XYO aims to create a cleaner, more scalable economic model that supports rapid transaction flow without compromising decentralization.
XYO doubles down on its mission to bring real-world data to Web3
According to XYO Co-Founder and CEO Arie Trouw, today’s blockchain infrastructure “falls short” when it comes to high-volume, real-world data needs. “The community is ready for a system that can handle both high volumes of data and maintain true decentralization,” Trouw said, emphasizing that XYO’s new Layer 1 addresses long-standing pain points like bloat, inefficiency, and barriers to participation.
The launch of its own Layer 1 positions XYO to be a major infrastructure provider for the next generation of DePIN, AI, and RWA applications which are all sectors expected to drive much of blockchain’s mainstream utility in the coming years.
