Tezos (XTZ), created by Arthur and Kathleen Breitman in 2014 and developed by Dynamic Ledger Solutions, introduced a self-amending blockchain. Its initial coin offering (ICO) in July 2017 raised $232 million, leading to the creation of the Tezos Foundation in Switzerland to guide the project's development.
The platform is known for its on-chain governance model, allowing XTZ token holders to participate in decision-making, reducing the likelihood of network forks. "Baking" is a process on Tezos where users can lock tokens to partake in governance and secure the network, promoting community engagement and aligning with the vision of a democratic, evolving blockchain.
Tezos operates on a dual-layer architecture: the Shell, which handles transactions and operations, and the Protocol layer, where proposals are made. This structure enables adaptability and responsiveness to community input. Its governance is supported by a liquid proof-of-stake (LPoS) consensus mechanism, allowing users to stake a minimum of 8,000 XTZ to become bakers, emphasizing user participation in governance.
The process for implementing upgrades involves four voting periods, ensuring proposals are thoroughly vetted and tested before adoption, highlighting the platform's dedication to stability and innovation. Contributors to successful proposals are rewarded, encouraging ongoing development and community involvement.
XTZ, Tezos' token, is used for gas fees, staking validator nodes for network security and rewards, and awarding community members for successful protocol upgrades. Tezos features an on-chain governance system, allowing any staker to vote or delegate votes to validators, with a 6,000 XTZ minimum to become a validator. Tezos has an unlimited XTZ supply.
