In a significant advancement for blockchain technology, XYO has unveiled XYO Layer One, a new blockchain network tailor-made for data-heavy industries such as artificial intelligence (AI), logistics, and cloud services. This launch positions XYO Layer One as a pioneering solution in scalability and efficiency, capable of handling large volumes of data without affecting performance. Notably, XYO is recognized as the industry’s first Decentralized Physical Infrastructure Network (DePIN) project, earning $8.8 million in revenue in 2024 and attracting a diverse user base, with 80% coming from outside the traditional crypto landscape.
Since its inception in 2018, XYO has developed a suite of data-intensive blockchain products, including the mobile app COIN, which incentivizes users to turn everyday data into tangible rewards. Initially focused on location data, XYO has expanded its ecosystem to incorporate over 10 million nodes globally—comprised of data-producing devices and individual contributors. This ecosystem aims to deliver accurate and validated data to various third parties, providing insights ranging from basic real-world metrics like location and temperature to more complex validations such as consumer behavior and survey responses. For instance, a recent collaboration with a supermarket chain involved optimizing product organization based on feedback from shoppers.
The decision to launch XYO Layer One comes after more than seven years of assessing the limitations of existing blockchain networks. XYO found that existing options did not adequately meet the needs of high-efficiency, data-centric applications. Current data-heavy sectors such as AI, Real-World Assets (RWA), and DePIN all necessitate a blockchain that can support substantial data usage without performance bottlenecks. AI, in particular, relies on large streams of accurate data to minimize biases and enhance training efficacy.
In a strategic move, XYO plans to migrate its existing products to the new XYO Layer One blockchain, followed by key partners. “Having developed on blockchain for years, I’ve seen firsthand where current systems fall short,” remarked Arie Trouw, co-founder and CEO of XYO. He emphasized that the community is now ready for a decentralized system capable of handling both high volumes of data while addressing common issues such as bloat and inefficiency.
One of the major advancements in XYO Layer One addresses the outdated processes that plague current blockchains. These existing systems often struggle to scale effectively, resulting in slower transactions and increased gas prices. XYO Layer One introduces innovative features that allow the blockchain to adapt to varying data loads seamlessly. More detailed technical insights, including features like the Lookback Window, Step Hash, and Proof of Perfect, have been documented to provide clarity on the new capabilities of the network.
A notable development accompanying the launch is a new dual-token model for XYO. The original cryptocurrency, $XYO, which has been available since 2018 and is listed on several leading exchanges, will now function as a deflationary asset with a fixed supply. Within XYO Layer One, $XYO will serve multiple roles, including governance, payment, security, and staking. This structure is designed to ensure the long-term sustainability and alignment of incentives within the ecosystem.
To meet the ongoing transactional demands of XYO Layer One, a second token, $XL1, is being introduced. This token will act as the native currency for the blockchain, facilitating payments of gas fees, transaction processing, and node operation rewards. Participants will earn $XL1 by staking their $XYO, thereby fostering a continuous connection and relevance within the ecosystem. This incentivization model is designed to lock a substantial portion of the circulating supply of $XYO within the XYO Layer One for extended periods.
With this dual-token system, $XYO remains central to governance and long-term value, while $XL1 caters to the network’s utility requirements. The structural innovations aim to create a robust blockchain framework capable of supporting a range of applications, particularly those demanding vast data management capabilities.
XYO aims to establish itself as a leader in the blockchain space, having already secured its position as one of the largest DePIN projects with over 10 million nodes. Its unique technologies, including Proof of Location and Proof of Origin, ensure reliable data for asset tracking and various other demanding applications. With ambitions to broaden its reach, XYO continues to attract interest, including from non-crypto users, as it explores ways to enhance its ecosystem and offer innovative solutions to data-driven industries.
