[Crypto projects](https://revain.org/projects/) › Tezos

# 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

## Key facts

- **Ticker**: XTZ
- **Network**: own blockchain
- **Official site**: [tezos.com](https://www.tezos.com/)
- **Source code**: [gitlab.com/tezos/tezos](https://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](https://tezos.com/)
- Docs: [docs.tezos.com](https://docs.tezos.com/)
- Docs: [octez.tezos.com/docs](https://octez.tezos.com/docs/)
- Source code: [gitlab.com/tezos/tezos](https://gitlab.com/tezos/tezos)
- Foundation: [tezos.foundation](https://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](https://www.coingecko.com/en/coins/tezos)
- [CoinPaprika — Tezos](https://coinpaprika.com/coin/xtz-tezos/)
- [Tezos Docs — Tezos overview](https://docs.tezos.com/overview)
- [Tezos Docs — Bakers](https://docs.tezos.com/architecture/bakers)
- [Tezos Docs — Governance and self-amendment](https://docs.tezos.com/architecture/governance)
- [Tezos Docs — Smart contract languages](https://docs.tezos.com/smart-contracts/languages)
- [Octez docs — The consensus algorithm](https://octez.tezos.com/docs/active/consensus.html)
- [Octez docs — Adaptive Issuance](https://octez.tezos.com/docs/active/adaptive_issuance.html)
- [Tezos — home page (upgrade timeline)](https://tezos.com/)
- [Tezos Foundation — About us](https://tezos.foundation/about-us/)

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Page updated: 2026-10-31

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Source: https://revain.org/projects/tezos/