Key Features: Plasma offers near-instant transaction finality using a custom Proof-of-Stake consensus mechanism called PlasmaBFT. It is fully Ethereum Virtual Machine (EVM)-compatible, enabling developers to easily port applications.
Zero-Fee Mechanism: Through a "paymaster" system, Plasma covers gas costs for standard USDT transfers, allowing users to send money without holding the native XPL token.
The XPL Token: XPL is the native utility and governance token used to secure the network via staking, pay for complex smart contract transactions, and reward validators.
Backing & Adoption: Plasma has high-profile backing, including Tether (USDT issuer), Bitfinex, and Founders Fund. It launched with significant liquidity, reporting over $2 billion in stablecoin TVL (Total Value Locked).
Tokenomics & Supply: The genesis supply is 10 billion XPL. The token follows an inflationary model, with validator rewards starting at 5% annual inflation, decreasing to 3% over time, while using an EIP-1559-style fee-burning mechanism to counteract dilution.
Launch & Performance: The mainnet beta launched in late September 2025. Shortly after launch, the token experienced high volatility, falling from early highs of over $1.50 to lower levels, sparking intense community discussion regarding insider selling, which the founder denied.
What XPL is Used For:
Staking: Validators stake XPL to secure the network.
Gas Fees: Used for complex transactions beyond simple USDT transfers.
Governance: Holders can participate in on-chain voting.
Ecosystem Incentives: Used to fuel adoption via liquidity mining and developer grants.
Recent Developments (Late 2025-Early 2026):
Plasma One: A stablecoin-native "neobank" app was announced, offering a card using the network as payment rails.
