XDC Network (XDC) Tokenomics
XDC Network (XDC) Tokenomics & Price Analysis
Explore key tokenomics and price data for XDC Network (XDC), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
XDC Network (XDC) Information
XDC Network is an EVM-compatible Layer 1 network. A highly optimized, bespoke fork of Ethereum, the XDC Network reaches consensus through a delegated proof-of-stake (XDPoS) mechanism, which allows for two-second transaction time, near zero gas fees, and a high number of transactions per second. Secure, scalable, and highly efficient, the XDC Network powers a wide range of novel blockchain use cases and provides state-of-the-art infrastructure for enterprise-grade blockchain applications and real-world asset tokenization.
In-Depth Token Structure of XDC Network (XDC)
Dive deeper into how XDC tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
The XDC token is the native utility token of the XDC Network, an enterprise-grade, EVM-compatible hybrid blockchain that utilizes a delegated Proof-of-Stake (XDPoS) consensus mechanism. The token is essential for network settlement, security, and governance, supporting functionalities like smart contracts, cross-border transactions, and decentralized applications (dApps).
Issuance Mechanism
The XDC Network employs the XinFin Delegated Proof of Stake (XDPoS) consensus mechanism. This mechanism is highly efficient and environmentally conscious, requiring validators to perform a small Proof-of-Work (PoW) when proposing a new block to resist spam attacks, while the core consensus remains Proof-of-Stake.
Key aspects of the issuance and consensus mechanism include:
- Consensus: XDPoS ensures fast processing with a two-second transaction block time and high scalability, capable of handling over 2,000 transactions per second (TPS).
- Security: The network incorporates a forensics-enabled consensus mechanism built upon an advanced Byzantine Fault Tolerance (BFT) protocol. This system includes improved slashing conditions to swiftly detect and penalize malicious behavior, ensuring network stability.
- Transaction Fees: The network features near-zero gas fees, averaging around $0.00001 or less per transaction. These low costs make the network highly economical for users.
Allocation Mechanism
The total supply of XDC tokens was allocated across four primary categories at the launch of the mainnet.
| Allocation Category | Percentage of Total Supply | Token Amount (XDC) | Purpose |
|---|---|---|---|
| Founders/Team | 40% | 15,000,000,000 | Allocated to founders, advisors, core team members, and the community. |
| Ecosystem Development | 27% | 10,000,000,000 | Dedicated to the development of the ecosystem, including bounty programs. |
| Pre-Placement | 27% | 10,000,000,000 | Reserved for exchanges and early investors. |
| Treasury | 6% | 2,500,000,000 | Allocated to the XDC Foundation's treasury for network maintenance and support. |
| Total | 100% | 37,500,000,000 |
Usage and Incentive Mechanism
The XDC token serves multiple utility functions within the ecosystem, primarily focused on securing the network, facilitating transactions, and enabling governance.
Core Utility and Usage
- Settlement: XDC is the primary utility token used for settlement across decentralized applications (dApps) running on the network.
- Transaction Fees (Gas): XDC is required to pay the network's near-zero gas fees for all transactions.
- Token Standards: The network supports various token standards, including XRC-20 for fungible tokens, XRC-721 for non-fungible tokens (NFTs), and XRC-1155 for multi-token/semi-fungible tokens, enabling a wide range of decentralized applications.
- Interoperability: XDC is used as a settlement vehicle within the R3 Corda ecosystem via a unique bridge, allowing value to move freely between the Corda public network and the XDC Network.
Incentives and Staking
- Staking and Security: XDC is used to incentivize validators (masternodes) who secure the network through the XDPoS mechanism. Token holders can stake XDC to support validators and participate in network security.
- Governance: Token holders can actively participate in network governance, contributing to important decisions and protocol upgrades, particularly with the enhanced governance mechanisms introduced in XDC 2.0.
- Ecosystem Incentives: The network actively promotes liquidity and adoption through incentive programs. For example, a recent initiative offered a 7% APY on XDC staking, paid in XDC, with additional rewards available for using staked XDC as collateral in lending platforms built on the network. These programs are designed to rapidly build liquidity and attract early adopters.
Locking Mechanism and Unlocking Time
The XDC Network utilizes staking and locking mechanisms primarily for network security and to align incentives for long-term commitment.
- Staking: The XDPoS mechanism requires staking to secure the network. The XDC token is used as collateral by validators and delegators.
- Slashing: The network implements improved slashing conditions to penalize malicious behavior by validators, which acts as a locking mechanism tied to security and performance.
- Allocation Vesting: While the specific vesting schedules for the Founders/Team and Pre-Placement allocations (totaling 67% of the supply) are not detailed, the allocation structure implies a controlled release over time to prevent market saturation and ensure long-term commitment from core stakeholders and early investors.
- Incentive Program Lockups: Specific ecosystem incentive programs, such as the one launched with PrimeFi, involve staking XDC to mint derivative tokens, which are then used as collateral, effectively locking the underlying XDC to boost Total Value Locked (TVL) and network security.
Detailed, comprehensive token unlock schedules for all initial allocations (Founders/Team, Ecosystem Development, Treasury, and Pre-Placement) were not available.
XDC Network (XDC) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of XDC Network (XDC) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of XDC tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many XDC tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand XDC's tokenomics, explore XDC token's live price!
How to Buy XDC
Interested in adding XDC Network (XDC) to your portfolio? MEXC supports various methods to buy XDC, including credit cards, bank transfers, and peer-to-peer trading. Whether you're a beginner or pro, MEXC makes crypto buying easy and secure.
XDC Network (XDC) Price History
Analyzing the price history of XDC helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
XDC Price Prediction
Want to know where XDC might be heading? Our XDC price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
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