XDC

The XDC token is the native cryptocurrency fueling the XDC Network ecosystem. Its primary utility is to facilitate lightning-fast and cost effective transactions across the network, including cross border payments and micro payments. XDC also serves as the gas fee for smart contract execution and dApp interactions. Furthermore, holders can participate in network governance and contribute to its security by staking XDC to run masternodes or observer nodes, earning rewards and influencing the network's future development, particularly in areas like Real World Assets (RWA) tokenization and DeFi.

The XDC Network addresses inefficiencies and lack of transparency in global trade finance and payments. It bridges the gap between traditional finance and decentralized ecosystems by providing an enterprise grade blockchain solution that is ISO 20022 compliant. This enables secure, instant, and cost-effective cross-border settlements and asset tokenization, including Real World Assets (RWA). By integrating with leading blockchain analytics tools like BIG and Elliptic, XDC enhances compliance and security for institutions, reducing illicit activities and fostering trust in digital transactions, a key differentiator from many public blockchains.

XDPoS consensus employs a double validation process where transactions are verified by two randomly selected masternodes before finalization. The randomization algorithm prevents collusion while requiring validator identification through KYC procedures. With 108 known institutional validators and standby nodes maintaining 99.99% uptime requirements, the network achieves Byzantine fault tolerance equivalent to proof-of-work systems while consuming less than 0.01% of Bitcoin's energy. Security is further enhanced through finality checkpoints every 200 blocks, creating irreversible transaction confirmations within minutes.

Gasless subnets allow enterprises to deploy blockchain solutions without requiring end users to hold cryptocurrency or pay transaction fees. By staking XDC on the mainnet, businesses create application-specific chains where operational costs are abstracted from users. This enables: - Seamless onboarding of non-crypto-native users - Predictable operational budgeting without volatile gas costs - Regulatory compliance through identified transaction sponsorship - Customizable throughput parameters per business need Major financial institutions particularly benefit when deploying trade finance solutions where multiple parties (suppliers, banks, inspectors) require blockchain access without cryptocurrency exposure.

The hybrid model maintains dual state databases: a private state for confidential business data and a public state for transparent settlement. Smart contracts can selectively reveal hash verified data to auditors without exposing sensitive details. For example, a letter of credit transaction would keep beneficiary details and invoice amounts private between negotiating banks, while publishing payment settlement proofs to the public chain. This architecture meets financial institutions' confidentiality requirements while providing the audit transparency demanded by regulators.

Masternode operators must maintain: - Minimum 10,000,000 XDC staked (non custodial) - Tier-3+ data center infrastructure with 100% uptime SLA - Dedicated static IP addresses - Hardware equivalent to AWS EC2 M3 instances or Azure D-series VMs - Enterprise-grade network security (firewalls, DDoS protection) Successful validators earn 10% annual rewards but face slashing penalties for downtime or improper validation. The technical requirements ensure enterprise level reliability for financial applications processing billions in trade transactions.

XDC employs deflationary pressure through: 1. Transaction fee burning (100% of minimal fees destroyed) 2. No block rewards outside staking returns 3. Fixed master node requirements locking substantial supply The staking reward structure (10% for maste rnodes, 8% for standby nodes) creates controlled issuance calibrated to network growth. With 108 master nodes and 95 standby nodes currently operational, approximately 18.9 million XDC enter circulation annually as rewards representing less than 0.2% of total supply based on circulating amount. This conservative emission schedule combined with burning mechanisms creates net deflationary pressure as network usage increases.