what is plasma token
The Plasma token (XPL) is the native cryptocurrency of the Plasma Layer-1 blockchain, built specifically to be the foundational infrastructure for global stablecoin payments, offering fast, near-zero-fee transactions for tokens like USD₮. XPL secures the network, pays for complex transactions (even with gasless stablecoin use), rewards validators, and facilitates governance, providing economic stability for a system aiming to make digital dollar transfers accessible and efficient worldwide.
Key Functions of the XPL Token
Network Security & Staking: Validators stake XPL to secure the network and validate transactions in the Proof-of-Stake system.
Transaction Fees: XPL covers fees for smart contract interactions and other complex operations, though simple USD₮ transfers can be gasless.
Economic Foundation: It underpins the entire economic model, ensuring validators are rewarded for maintaining the high-performance network.
Plasma Blockchain Features
Stablecoin Focus: Designed to overcome limitations of older blockchains for stablecoin payments.
EVM Compatible: Allows easy deployment of Ethereum smart contracts.
PlasmaBFT Consensus: Provides fast finality and high throughput.
Bitcoin Bridge: Enables trust-minimized integration of Bitcoin.
How it Differs from Other Tokens
Unlike many tokens that require users to pay gas fees in the native coin, Plasma's design allows for seamless, gas-free sending of stablecoins like USD₮, making it feel like a simple text message.
