I recently discovered that the tokenomics design of XPL is quite interesting. The total supply is capped at 10 billion tokens, with 40% directly allocated to ecosystem development, which is a significant move. The benefits of this approach are obvious—ample token reserves can motivate developers and community members to participate actively, fostering the long-term growth of the entire ecosystem.

In terms of inflation, the design is also well thought out. Initially, the annual inflation rate is 5%, and these newly minted tokens are released to participants as staking rewards, encouraging users to lock their tokens and enhancing network security. In later stages, the inflation rate gradually decreases to 3%, effectively preventing excessive token dilution. Moreover, XPL adopts a model similar to Ethereum's EIP-1559, burning the base fee of each transaction. This means that more frequent transactions lead to more tokens being burned, creating a natural deflationary pressure that can partially offset inflation. From a supply and demand perspective, this design remains quite balanced.

Regarding market response, the data is somewhat surprising. After the XPL mainnet went live in Beta on September 25, 2025, the market reaction was unexpectedly enthusiastic. About $250 million in stablecoins flooded in within the first hour, indicating high market expectations. Even more astonishing, just 24 hours later, the on-chain stablecoin supply exceeded $7 billion. This rapid and large-scale influx of funds reflects the project's success in attracting numerous participants in a short period.

However, there may also be some aspects to watch out for behind these numbers.