Tezos (XTZ): how it works, supply and reviews
In short
- Type
- Self-amending layer-1 blockchain
- Issuance
- New tez is issued as participation rewards to bakers and stakers, a Liquidity Baking subsidy and occasional protocol 'invoices'
- Risks and caveats
- Tez has no fixed maximum supply; issuance adjusts each cycle depending on how much tez is staked.
- Checked
- 28 October 2026
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Key facts
- Ticker
- XTZ
- Network
- own blockchain
- Official site
- tezos.com
- Source code
- gitlab.com/tezos/tezos
Data: CoinGecko (trading activity) and CoinPaprika (links), 2026-10-27. Only projects that still trade with meaningful volume are listed.
What is Tezos
Tezos is an open-source proof-of-stake blockchain created in 2014 by Arthur and Kathleen Breitman and launched in 2018. It upgrades itself through on-chain votes by bakers, without hard forks, and supports smart contracts, NFTs, DeFi and Layer 2 rollups. Its native token is tez (XTZ).
Network and consensus
| Parameter | Details |
|---|---|
| Type | Self-amending layer-1 blockchain |
| Consensus | Proof of stake using the Tenderbake algorithm; bakers (delegates) produce and attest blocks |
| Block time | 6 seconds since the Tallinn upgrade (January 2026) |
| Launched | 2018, after a 2017 crowdfunding |
| Smart contracts | Yes; contracts compile to Michelson, the base language. Etherlink adds an EVM-compatible Layer 2 |
| Programming language | LIGO, SmartPy and Michelson |
Supply and issuance
| Parameter | Details |
|---|---|
| Issuance | New tez is issued as participation rewards to bakers and stakers, a Liquidity Baking subsidy and occasional protocol 'invoices' |
| Inflation | Adaptive issuance: the rate is recomputed every cycle to push the staked share of supply towards a 50% target, within minimum and maximum bounds |
| Staking rewards | Holders can delegate or stake tez with a baker and receive a share of the baker's rewards |
| Initial distribution | Initial tez was distributed through a 2017 crowdfunding |
What XTZ is used for
- Paying transaction and smart contract fees on Tezos.
- Staking as a security deposit to bake and attest blocks, or delegating and staking with a baker for rewards.
- Voting power in on-chain protocol upgrades, exercised by delegates.
Who develops and governs Tezos
- Founders
- Arthur and Kathleen Breitman
- Governance
- On-chain self-amendment: delegates vote on protocol proposals through five periods of about 14 days each; approved upgrades activate automatically
- Foundation
- Tezos Foundation, a Swiss foundation that supports the protocol through grants; it states it does not manage or operate Tezos
- Open source
- Yes; anyone can run a node
History
| Date | Event |
|---|---|
| 2014 | Tezos created by Arthur and Kathleen Breitman. |
| 2017 | Crowdfunding held. |
| 2018 | Tezos network launched. |
| May 2025 | Rio upgrade introduced 1-day cycles and allocated 10% of participation rewards to the Data Availability Layer. |
| January 2026 | Tallinn upgrade reduced block times to 6 seconds. |
| 30 June 2026 | Ushuaia, the 21st protocol upgrade, activated, raising Data Availability Layer bandwidth. |
Security and audits
- Bakers lock staked tez as a security deposit, which the protocol can slash for misbehaviour such as double baking.
- Tezos Foundation accounts are audited by its statutory auditor, PwC Switzerland.
Risks and caveats
- Tez has no fixed maximum supply; issuance adjusts each cycle depending on how much tez is staked.
- Protocol upgrades approved by delegate votes change the rules automatically, including economic parameters.
- Staked tez can be slashed if the chosen baker misbehaves.
Official links
- Website: tezos.com
- Docs: docs.tezos.com
- Docs: octez.tezos.com/docs
- Source code: gitlab.com/tezos/tezos
- Foundation: tezos.foundation
Questions and answers
What is Tezos (XTZ)?
Tezos is an open-source proof-of-stake blockchain that upgrades itself through on-chain votes. Its native token, tez (XTZ), pays fees and is staked by bakers.
Who created Tezos?
Arthur and Kathleen Breitman created Tezos in 2014. It held a crowdfunding in 2017 and launched in 2018; the Swiss Tezos Foundation supports the ecosystem with grants.
Does tez have a maximum supply?
No. New tez is issued as staking rewards at an adaptive rate that targets 50% of supply being staked.
How does Tezos reach consensus?
Bakers produce and attest blocks using the Tenderbake proof-of-stake algorithm, with a 6-second minimum block time.
Sources
- CoinGecko — Tezos
- CoinPaprika — Tezos
- Tezos Docs — Tezos overview
- Tezos Docs — Bakers
- Tezos Docs — Governance and self-amendment
- Tezos Docs — Smart contract languages
- Octez docs — The consensus algorithm
- Octez docs — Adaptive Issuance
- Tezos — home page (upgrade timeline)
- Tezos Foundation — About us
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