• Network Security (Staking): Validators in the network's Proof-of-Stake (PoS) consensus mechanism must stake XPL to validate transactions and secure the network. Token holders can also delegate their XPL to validators to earn rewards.

  • Transaction Fees (Gas): While simple stablecoin transfers (like USDT) can be gasless for the end-user through a built-in "paymaster" system, XPL is required to pay for gas fees associated with more complex smart contract interactions and other transactions on the Plasma blockchain.

  • Governance: XPL holders can participate in the decentralized governance of the network. This includes voting on important decisions such as protocol upgrades, changes to validator policies, inflation rates, and the allocation of the ecosystem growth fund.

  • Ecosystem Incentives: A significant portion of the XPL supply (40%) is allocated to initiatives designed to expand the network's adoption, including liquidity mining programs, airdrops, and developer grants to foster a vibrant ecosystem. @Plasma #Plasma $XPL