KuCoin AMA With XL1 (XL1) — How the XYO and XL1 Dual-Token System Strengthens Blockchain Utility and Trust

 

Dear KuCoin Users,

KuCoin recently hosted an AMA (Ask Me Anything) session in the KuCoin Exchange Group, featuring The XYO Team.

Time: October 16, 2025, 04:00 AM - 05:35 AM (UTC)

Official Website: https://xyo.network/

Follow XL1 on X, Telegram & Discord

The XYO Team: I love this question, no better place to begin.

 

XYO Layer One is the next big step in how data becomes trusted. It’s a unique blockchain built specifically to confirm that real-world information is genuine and hasn’t been faked or tampered with.

 

When data flows into the system, the chain checks where it came from, how it was created, and whether it can be verified. Once it passes, it’s locked in permanently. That level of reliability is what lets AI systems, DePIN projects, and developers build things that rely on real-world truth without any guesswork. I'm so proud of our project and all we've accomplished and continue to build.

Q: Why did XYO decide to build its own blockchain instead of just staying on Ethereum?

The XYO Team: Ethereum helped us grow, and we're so grateful to Vitalik and everyone who built it, but it wasn’t made for what we do better than anyone else: data.

 

It’s great for transactions and tokens, but not for high-speed, high-volume data verification. XYO has always focused on proving that data is real, and that requires a blockchain built around validation rather than speculation. We wanted to integrate our own innovative technologies like Proof of Origin, Proof of Location, Bound Witnesses directly into the core.

 

It was also crucial to build in a bunch of features for vastly improved efficiency and cost savings because older blockchains just can’t scale to accommodate data. (They very quickly become absurdly expensive for processing data.) That meant starting fresh with XYO Layer One so we could build a blockchain that treats verified data as the heart of the system instead of just another payload.

Q: What’s the purpose of the XL1 token in all this?

The XYO Team: I could yap about XL1 all day, it's one of the coolest things our team has ever innovated.

 

XL1 is the workhorse of XYO Layer One. Every time someone records data, runs a function, or verifies a proof, it uses XL1. The token keeps the network active and efficient. As more developers and partners build on the chain, XL1 becomes the utility that drives daily activity and keeps everything moving.

 

XL1 also connects directly to rewards. When users stake XYO to help secure the blockchain, they earn XL1 through the Step Reward Pools. Each Step represents a period of network activity, and when that Step is completed, its pool releases XL1 to participants who supported the process. As the network processes more data, additional Steps are created, which leads to more rewards. The system only issues new XL1 when there is real usage behind it.

 

The goal is to create a healthy cycle where XL1 powers network activity, and network activity returns XL1 to those who keep it strong. It’s a system that rewards contribution, supports growth, and scales naturally with demand.

 

I can't tell you how happy I am to see the adoption and excitement about this token I get to witness every single day.

Q: Where does the XYO token fit now that XL1 exists?

The XYO Team: I'm so grateful you brought this up, Rami, thank you.

 

XYO remains the foundation of everything we’ve built. It anchors both the blockchain and the broader ecosystem. Within XYO Layer One, it’s used for staking and governance, giving holders a direct role in how the network operates and evolves. When users stake XYO, they help secure the system and earn XL1 in return, linking both tokens through active participation.

 

Beyond the blockchain, XYO continues to power the world’s first DePIN, with over 10 million nodes. It’s used across apps, devices, and integrations that collect and validate real-world data. The XYO token connects everything we do into a single data economy built on proof and verification.

 

Q: How is XYO Layer One different from all the other data or DePin blockchains out there?

 

The XYO Team: Okay I don't want to throw any shade. But, a lot of blockchains say they handle data, but what they really do is store it. There’s no built-in way to prove the data on those chains is any good.

XYO Layer One proves its data, which is the only thing that makes it worth using in an era of bots, farms, and other B.S. Every data point that enters the network is verified through cryptographic processes that confirm its source and context. That means a business, app, or AI model can use that data with confidence because it’s already been checked by the system itself. It doesn't matter who claims the data is real, the network proves it independently. That’s the difference between raw data and truth.

Q: How does XYO Layer One connect to everything else XYO has built?

 

The XYO Team: It's really what connects everything we've built! XYO Layer One is the connective tissue, if that makes sense.

 

XYO Layer One gives the entire ecosystem a single home base. The COIN app, connected devices, and partner platforms can now feed verified data straight into the blockchain instead of through separate systems. Those same feeds can then take advantage of that massive and growing pool of verified data. That creates a unified loop where real-world activity feeds the chain, the chain generates rewards, and those rewards go back to users and developers. It’s what makes XYO feel like one connected ecosystem instead of a collection of tools. Everything we’ve built over the years, when XYO became the first DePIN in 2018, is converging here.

Q: What’s the idea behind staking in this system?

 

The XYO Team: Staking is top-of-mind for me because my entire workday revolved around it. We just completed the XYOL1 Genesis Staking round, so be sure you're following OfficialXYO on X (Twitter) because we're going to have some details first thing in the morning in the U.S.

 

Staking lets the community power the network directly. When you stake $XYO, you help secure the blockchain and, in return, you earn $XL1. It’s a way to reward participation and trust. The more people stake, the stronger the network becomes because every staked XYO represents someone committed to keeping the system decentralized and running smoothly. It’s both a financial action and a way to take part in how the network grows and stays resilient over time.

Q: What’s next for XYO Layer One now that it’s live?

 

The XYO Team: Whew. Well, the first thing the entire team did was take a breath. The launch was a massive team effort and I'm so proud of all we accomplished. There's still so much work to do, though.

 

Now it’s all about growth and scale. The foundation is solid, and the next step is bringing in more developers, partners, and data sources. We want to see XYO Layer One used everywhere, in AI training, logistics, mapping, and any system that depends on verified data. The more activity that flows through the network, the more useful and valuable it becomes. What started as an idea about proof and truth is turning into a real data economy that’s already highly functional with 10 million nodes and dozens of partners. And what’s really exciting is that this is still just the beginning.

Free-Ask from the KuCoin Community to XL1

Q: What makes XL1 stand out from other blockchain projects, and which real-world problems is it solving that others can’t?

The XYO Team: XYO Layer One is a data-first blockchain built for AI, DePIN, and other data-heavy applications. We live in a world where it’s hard to tell what’s real, so XYO delivers verified truth. It proves that actions, both real-world and digital, actually happened, when and where they occurred, and that the data came from a genuine source. Technologies like Bound Witnesses, Proof of Origin, and Proof of Location create trust at the edge, while Step Hashes and Lookback Windows keep the chain fast and scalable. XYO Layer One is the foundation for reliable data in an AI-driven world.

 

Q: With XYO Layer One, you addressed scalability problems like blockchain bloat via Lookback Windows and Step Hashes. Can you explain exactly how these features reduce storage/compute burdens for nodes, and what trade-offs (if any) come with them?

The XYO Team: See what I mean? We got questions from people who've read the documentation and understood it, too.

 

Lookback Windows lighten the load for nodes by only keeping the most recent set of blocks immediately available. Older history moves to cold storage, so nodes stay fast and affordable. Step Hashes take it a step further by grouping blocks together so the system can skip ahead through history instead of scanning everything. The trade-off is minimal: older data might take one extra lookup, but we’ve built in efficient proofs and checkpoints to keep access smooth. It’s all about keeping performance high while cutting unnecessary weight.

Q: Tokenomics in the whitepaper emphasize a dual-token architecture (XYO for security/governance and XL1 for utility/gas) with elements like base fee burning, step reward pools, slashing, etc. How did you calibrate these parameters (burn rate, reward schedule, slashing thresholds)? Which parts are immutable post-launch and which can adapt over time?

The XYO Team: Okay well the first thing you need to know, and something I've often said privately but rarely just say out loud for the community, is that our CEO and CTO, Arie, is a technical genius. He understands software like a hero from a movie about hackers, what he's capable of is actually wild. His development leadership team also includes Joel, who does a lot of the back-end network tech, and Matt, who builds our interactive interfaces, who are both brilliant in their own rights.

 

Together, our team spent a lot of time tuning the balance between security, reward, and sustainability. Base fee burns help regulate network activity, Step Reward Pools fund participation, and slashing keeps node operators honest. Early emissions are intentionally high to reward early stakers and will gradually move toward the long-term target after a year or two. Some things are locked forever, like the total supply of XYO tokens and its role in securing the network. Others, such as reward weights or burn ratios, may evolve through governance as the ecosystem grows.

 

Q: How does XL1 plan to integrate AI in its blockchain ecosystem to improve scalability and user experience?

The XYO Team: I was scrolling XYO's Twitter/X feed this morning, looking for any interesting news, and I saw a video of a bunch of popular memes that had been turned into an AI video of all the subjects of the memes dancing. Stuff like Distracted Boyfriend and Al Pacino in Scarface. It was just barely this side of unrealistic, it was so convincing.

 

AI runs on data, and XYO provides data we can actually trust, making AI more reliable, and we're already at the point where technology absolutely requires this. Devices can generate signed, verifiable observations, and our blockchain makes it easy for AI systems to find and validate that information. Imagine AI agents that can confirm a physical action really happened or a sensor reading is genuine, all without human input. We’re building tools that make this interaction seamless, fast, and cost-effective.

Q: How does XL1 plan to ensure long-term token utility and demand beyond trading — will there be real-world integrations or ecosystem incentives that sustain growth?

The XYO Team: Absolutely. This is so important to us and for the XYO community.

 

XL1 is the lifeblood of XYO Layer One. It’s used for everything from transaction fees to running network functions. That creates natural demand as the ecosystem grows. We’re also partnering with builders who need reliable data infrastructure for AI, mapping, and real-world applications. (We already have an incredible partner building on XYO Layer One, PiggyCell, the biggest charging station network in Korea, with a 98% market share!) Stakers earn XL1 from Step Reward Pools, tying rewards directly to network activity. When the network thrives, everyone benefits.

Q: What inspired the creation of XL1, and what problem does it aim to solve in the crypto ecosystem?

The XYO Team: We built XYO Layer One because no one else was doing it, and we saw a market. More than a market, a pressing need.

 

After years of creating tools for proof of location and data validation, we realized the blockchain world was missing a true data layer. Every other chain focused on token transfers. We wanted a blockchain that could handle real-world information as efficiently as money. That’s why we created XYO Layer One, and XL1 exists to keep it running smoothly for millions of daily interactions.

 

Q: Can you walk us through some of the major milestones on XYO’s roadmap — including key achievements to date, upcoming developments, and any notable partnerships or technical goals that the community should be excited about?

The XYO Team: Thank you to whoever asked this one, I love bragging about XYO.

 

We’ve had a huge year. Huge. We launched XYO Layer One, introduced the dual-token system, and surpassed 10 million nodes worldwide in the XYO DePIN. The XL1 TGE included massive exchanges, including our friends here at KuCoin, providing incredible access for the community. Coming up next: Node Staking, new developer tools, and partnerships across DePIN, AI, and data infrastructure. We’re making it easy for anyone to build on XYO and participate in its growth.

 

Q: What is the core vision driving XL1 long-term ecosystem growth? and how do you plan to attract both developers and mainstream users to participate?

The XYO Team: XYO will be the global backbone for verified digital and real-world data.

 

We make proof reliable, make access fast, and make participation rewarding. Developers will get easy SDKs, APIs, and clear documentation, while everyday users will experience a network that works smoothly and does what they want it to do. It’s about bringing trust back to data and giving everyone a way to participate in the XYO economy.

 

We want to make adoption an easy and obvious choice.

Q: Are there any plans to strengthen incentives for data contributors or operator nodes to keep the XYO ecosystem active and sustainable?

The XYO Team: Oh a little bit of a harder question, I like that. Yes, constantly.

 

Step Reward Pools are designed to pay contributors for the value they create. Improvements we’re considering include incentives for high-quality data and uptime for reliable nodes, and possibly targeted incentives when network coverage is needed, the way Uber offers their drivers surge pricing.

 

We’re still in the early stages, nothing is written in stone unless we've already announced it, but there’s a lot on the table and so much potential. We’re building a self-sustaining system where good data earns more, so everyone wins. (Except bad actors, who get booted automatically, which makes me happy because I can’t stand cheaters.)

Q: Is it possible to stake XL1 tokens and earn rewards like passive income? In other words, can I lock my $XL1 tokens, and get extra $XL1 or other benefits in return without doing any trading?

The XYO Team: That's an understandable question, but actually, no.

 

Staking happens with XYO, the original token launched by our project in 2018. (KuCoin was the first big exchange to list it, helping us launch the world’s first DePIN!)

 

When you stake $XYO, you help secure the network and earn $XL1 rewards from the Step Reward Pool. XL1 is what powers activity on the chain, so it stays in motion. If new options for XL1 emerge in the future, they’ll come through governance and will be clearly communicated to the community.

Q: I think XYO makes games fun. Are there any plans for location-based features in Web3 games? It's my question and suggestion too, madam

The XYO Team: Yes, gaming is a big use case for XYO and XYO Layer One! XYO actually has a gamified mobile app that lets you earn crypto (especially $XYO) called COIN that you can check out at coinapp.co. COIN has millions of users all over the world!

 

Additional games would be made by third party builders but it’s something we’re absolutely going to accommodate, seek, and foster.

Q: You mentioned unifying everything XYO has built under one ecosystem. What role will community developers and third-party apps play in expanding that ecosystem?

The XYO Team: Great question, love this one.

 

Community developers and third-party apps are essential to expanding the XYO ecosystem. XYO Layer One was built as a foundation that others can build on, not a closed system.

 

Developers can use the same tools that power XYO’s own technologies such as Bound Witness, Proof of Origin, Proof of Location, Step Hashes, and others to create applications that generate, verify, or use real-world data. This includes AI models built on verified datasets, DePIN integrations, RWA tokenization, and new location-based utilities.

 

By giving developers access to these technologies, XYO enables innovation at the edge. Every new app, node, or function adds more verified data to the network, expanding its utility and long-term value.

Q: Are there any upcoming partnerships or collaborations you can share with us?

The XYO Team: This is the question we get all the time and let me tell you. I would be tied to a post and mauled by bears if I unzipped my lips. So no, I can't talk about anything we have cooking.


Q: Revenue is an important aspect for all projects to survive and maintain the project/company. How have you been able to build a complete project and what is the way to generate profit/revenue of the token? What is the income model?

The XYO Team: This is a gimme for the XYO team. XYO is easily one of the most well-established and successful blockchain projects building today.

 

XYO’s sustainability comes from real utility. XY Labs, the company behind XYO, has generated millions in annual revenue for years through products, partnerships, and data services such as the COIN app, which brought millions of users into the ecosystem. With XYO Layer One, network activity like transactions, data validation, and on-chain functions generate XL1 fees that circulate back to node operators and stakers. Together, these off-chain and on-chain revenue models create a self-sustaining economy driven by real demand for verified data.

Q: Can you list 1-3 killer features of your project that make it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?

The XYO Team: This one's a softball but how can I say no?

 

XYO Layer One has more than a few killer features, but a few of the strongest advantages are what truly set it apart. I'm especially fond of the core proof systems, I don't think anybody's doing anything at all like what we are.

 

Proof of Origin confirms that data came from a genuine source. Proof of Location verifies where and when real-world actions took place. Proof of Perfect takes it further by ensuring that the data itself has not been altered or corrupted anywhere in its lifecycle. Together, they create verified truth from end to end, giving XYO a level of data integrity that no other blockchain can match.

 

 

🎁 Participate in the XL1 AMA quiz now for a chance to win 14,213.33 XL1.

KuCoin and XL1 have prepared a total of 2,750,000 XL1 to give away to AMA participants.

 

1. Pre-AMA activity: 1,066,000 XL1

2. Free-ask section (Main group): 66,000 XL1

3. Free-ask section (Other groups): 132,000 XL1

4. Flash Mini-Game: 420,000 XL1

5. Post-AMA quiz: 1,066,000 XL1

 

Sign up for a KuCoin account if you haven’t done so yet, and ensure you complete your KYC verification to be eligible for the rewards.

 

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