Understanding $XPL requires looking beyond price to its fundamental utility flows. The token is designed as the core economic unit of the @Plasma network. Its primary utilities are: Security (staking to validate transactions), Governance (voting on protocol upgrades), and Fee Payment (for smart contract interactions). As more users are onboarded via feeless transfers and more developers build complex dApps, the demand for $XPL for fee payment increases. Simultaneously, as the value secured on the network grows, so does the need for and reward from staking. This interlocked design ties the token's value directly to the network's usage and security needs.
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$XPL