Tezos (XTZ)

What is Tezos?

Tezos is a self-amending layer-1 blockchain platform that is specifically designed to support smart contracts and on-chain governance without requiring hard forks. The network was officially launched in the year 2018 by its original founders, Arthur Breitman and Kathleen Breitman. To secure the network and process transactions, Tezos utilizes a liquid-proof-of-stake consensus mechanism. The primary use cases for the native XTZ token include executing smart contracts, participating in staking, and engaging in protocol governance. In the current cryptocurrency ecosystem, Tezos operates as a smart-contract platform that shares similarities with other related layer-1 networks such as ETH, ADA, and DOT.

How does Tezos work?

Tezos operates using a liquid-proof-of-stake consensus mechanism to maintain agreement across its distributed network. This specific consensus model allows token holders to delegate their validation rights without locking up their funds. The self-amending nature of the protocol means that it can upgrade itself automatically based on community voting.

The network relies on participants known as bakers, who act as validators to secure the blockchain. These bakers are responsible for creating new blocks and verifying the accuracy of incoming network data. Any user holding the native XTZ token can choose to delegate their balance to a baker.

When a user initiates a transaction, the data is broadcast to the network for verification by the active bakers. The bakers then group these verified transactions into new blocks that are permanently added to the ledger. Once a block is finalized, the transaction settlement is complete and recorded on-chain.

Tezos use cases

Tezos tokenomics

The tokenomics of Tezos are structured around an inflationary supply model, as the protocol currently has no defined maximum supply limit. At present, the circulating supply of the network stands at exactly 1096225133.70825 XTZ tokens. Because the maximum supply is null, new tokens are continuously minted to reward participants who secure the network. This issuance is directly tied to the liquid-proof-of-stake consensus mechanism, where validators receive newly generated XTZ for creating blocks and processing transactions. The ongoing inflation is designed to incentivize active participation in network security and governance. Since there is no hard cap on the total number of tokens that can exist, the overall supply of XTZ will continue to increase over time according to the rules of the self-amending protocol.

Tezos price history & milestones

The Tezos network officially launched in the year 2018, introducing its self-amending blockchain to the broader cryptocurrency market. Over the course of its trading history, the XTZ token has experienced significant fluctuations in its market valuation. The asset reached its all-time high price of $9.18 on October 4, 2021. Conversely, the token recorded its all-time low price of $0.19191432079887 on August 12, 2026. These historical price extremes reflect the changing demand for the layer-1 smart-contract platform across different market cycles. Today, the project maintains a measurable presence within the digital asset industry. At the present time, Tezos holds a market position at rank 109 among all tracked cryptocurrencies.