Tezos (XTZ)

What is Tezos?

Tezos is a layer-1 smart-contract platform designed as a self-amending blockchain that supports on-chain governance without requiring hard forks. The network officially launched in the year 2018, having been founded by Arthur Breitman and Kathleen Breitman to address specific blockchain upgrade challenges. Tezos operates using a liquid-proof-of-stake consensus mechanism to secure its operations and validate transactions across the distributed network. Its primary use cases revolve around executing smart contracts, enabling token issuance, and facilitating decentralized applications. In the current cryptocurrency ecosystem, Tezos maintains its position as an established blockchain network that shares functional similarities with other major platforms like Ethereum, Cardano, and Polkadot.

How does Tezos work?

Tezos utilizes a liquid-proof-of-stake consensus mechanism to achieve agreement on the state of its blockchain. This system allows token holders to participate in network security without locking up their assets permanently. The liquid nature means users can delegate their voting rights while maintaining full control over their funds.

The primary participants in this network are known as bakers, which serve as the validators for the Tezos blockchain. Bakers are responsible for creating new blocks and verifying the accuracy of all proposed transactions. Users who do not wish to operate their own node can delegate their tokens to these active bakers.

When a user initiates a transaction, it is broadcast to the network for verification by the active bakers. The bakers group these verified transactions into new blocks and append them to the existing blockchain ledger. Once a block is successfully added, the transaction reaches final settlement and becomes a permanent part of the historical record.

Tezos use cases

Tezos tokenomics

The tokenomics of Tezos are structured around an inflationary supply model, as the protocol does not enforce a maximum supply cap for its native XTZ token. Currently, the circulating supply stands at approximately 1090446243.74107 tokens. New tokens are continuously generated and introduced into the ecosystem through the liquid-proof-of-stake consensus mechanism. Participants who engage in the network validation process, commonly referred to as baking, receive these newly minted tokens as a reward for securing the blockchain and processing transactions. This ongoing issuance is designed to incentivize active participation and maintain network security over time. Because there is no hard limit on the total number of tokens that can exist, the overall supply of XTZ will continue to expand gradually as new blocks are validated and added to the chain.

Tezos price history & milestones

Tezos officially launched its main network in 2018, entering the cryptocurrency market as a prominent layer-1 smart-contract platform. Over the course of its trading history, the native XTZ token has experienced significant price fluctuations across different market cycles. The asset reached its all-time high price of $9.18 on 2021-10-04 during a period of widespread market expansion. Conversely, the token recorded its all-time low price of $0.199652695875632 on 2026-07-01, reflecting a period of substantial market contraction. Today, Tezos continues to operate within the broader digital asset landscape, currently holding the market rank of 115 among all tracked cryptocurrencies. This position reflects its ongoing status as an established blockchain network with a dedicated community of participants and developers.