XYO, a longstanding decentralized physical infrastructure network platform, has announced the launch of its public beta for a new Layer 1 blockchain solution. The company is transitioning away from its previous operations on the Ethereum Layer 2 ecosystem, moving towards a dedicated Layer 1 blockchain developed specifically to manage high volumes of real-time data efficiently, promising high throughput and minimal latency.
Central to XYO’s innovation is the implementation of a novel consensus mechanism termed “Proof of Perfect.” This mechanism allows decentralized nodes within the network to deterministically identify the correct chain for block attachment by algorithmic ranking, based on criteria like validity, recency, and adherence to network protocol parameters—a concept collectively evaluated as the chain’s “perfectness.” This strategy eliminates the requirement to process the entire chain history, significantly boosting efficiency and reducing energy consumption often associated with traditional consensus protocols.
Proof of Perfect is supported by a unique lookback windowing mechanism, limiting each node’s active memory requirement to only recent transactions and delegating older data to archives, accessible when necessary.
In tandem with the new Layer 1 blockchain, XYO is also introducing a dual-token design involving a new utility token, XL1. Under this structure, the original XYO token will persist with roles in governance and staking, while XL1 will assume responsibilities related to operational functions. These operational functions include the payment of transaction and smart contract execution fees, gas fees, priority fees, and rewards to active participants on the network.
XYO’s dual-token approach is intended to achieve a balance between sustainable, long-term governance and immediate operational efficiency, creating appropriate incentives for both passive token holders and individuals actively contributing to network security and performance.
According to the company, this next-generation token architecture is crafted to decouple governance capabilities from transactional utility and is specifically tailored for scalability, paving the way toward robust decentralization and a more sophisticated innovation environment for decentralized physical infrastructure networks (DePINs).
