At the heart of this ecosystem is the $XPL token. Far from being just another digital asset, $XPL L is the security backbone of the network. It is used for:
Staking and Security: Validators stake $XPL L to participate in the #plasma consensus mechanism (PlasmaBFT), ensuring network integrity and earning rewards.
Governance: Token holders have the power to vote on protocol upgrades and the future direction of the project.
Economic Stability: The network uses a fee-burning model (similar to EIP-1559) to create deflationary pressure, balancing the token supply as transaction volume grows.
