What is XYO (XYO)?

By CMC AI
25 September 2025 11:14PM (UTC+0)

TLDR

XYO is a decentralized network focused on verifiable real-world data, using blockchain to ensure data integrity and sovereignty across applications like AI, logistics, and gaming.

  1. Decentralized Data Verification – Uses Proof of Origin and Proof of Location to validate data via a global node network.

  2. Dual-Token Ecosystem – XYO governs/stakes, while XL1 powers transactions on its Layer-1 blockchain for data processing.

  3. Real-World Use Cases – Supports DePIN (decentralized physical infrastructure) and AI with tamper-proof geospatial data.

Deep Dive

1. Purpose & Value Proposition

XYO addresses data reliability issues by creating a trustless system for verifying real-world information. Its network of 10M+ nodes (devices like smartphones) collects and validates data—such as location or sensor readings—using cryptographic proofs. This ensures data isn’t tampered with, critical for industries like supply chain, where provenance matters (XYO FAQ).

2. Technology & Architecture

The protocol combines Proof of Origin (validating data sources) and Proof of Location (verifying geospatial accuracy). Nodes called Sentinels gather data, Bridges relay it, Archivists store it, and Diviners process queries. In 2025, XYO launched Layer One, a dedicated blockchain for high-speed data processing, using XL1 tokens for gas fees and smart contracts (XYO GitBook).

3. Tokenomics & Governance

  • XYO Token: Fixed supply of 13.93B, used for staking, governance, and rewarding node operators. Staking locks tokens, reducing circulation and securing the network.
  • XL1 Token: Unlimited supply, burned with usage to control inflation. Powers transactions and developer incentives on Layer One, separating governance from utility.

Conclusion

XYO is a foundational layer for trustless data applications, bridging blockchain with real-world infrastructure. Its hybrid token model and focus on DePIN position it to support AI, logistics, and IoT. How might its emphasis on data sovereignty redefine industries reliant on unverified inputs?

CMC AI can make mistakes. Not financial advice.