Question 1

What is IOTX?

Accepted Answer

IOTX is the native token of the IoTeX L1 blockchain. It is used to pay fees for transactions and smart contract execution, and it is also the economic foundation for validation, staking, delegated voting, and governance participation. Its uses arise from specific operations on IoTeX L1: submitting a transaction or calling a contract requires fees; when wishing to participate in delegate elections or governance, holders can participate through staking and voting.

Question 2

What can IOTX be used for?

Accepted Answer

When users initiate a transaction or execute a smart contract on IoTeX L1, they pay on-chain fees in IOTX. These fees compensate network nodes that validate, execute, and record transactions, and cause operations that consume more computing resources to bear the corresponding cost. Fee size is related to the computational work required by a transaction, so the costs of an ordinary transfer and a complex contract call need not be the same. When planning to transfer or stake IOTX, users should still account for the fee balance required for subsequent on-chain operations.

Question 3

What is the practical purpose of staking IOTX?

Accepted Answer

Staking IOTX allows holders to participate in delegate voting and governance. Holders use staked tokens to vote in support of delegates; delegates run the protocol and maintain consensus, while top-ranked consensus delegates validate transactions and produce blocks. Stakers use their votes to affect the level of support for delegates, rather than directly handing tokens to delegates for unrestricted use. Reward arrangements vary by staking configuration and delegate program, so voting should not be understood as a fixed or guaranteed return.

Question 4

Can staked IOTX be withdrawn at any time?

Accepted Answer

Staked IOTX cannot be withdrawn immediately at any time. First, the selected lock period must end; if StakeLock is enabled, that feature must also be turned off first to begin the corresponding countdown. After these prerequisites are met and unstaking is initiated, there is also a 3-day cooldown period, and withdrawal is available only after the cooldown is complete. The lock period restricts early exit, while the cooldown period restricts the actual collection time after exit has been initiated.

Question 5

How does the IOTX supply mechanism work?

Accepted Answer

IOTX has a maximum supply of 10 billion tokens. Maximum supply is a total-supply boundary; it is not the same as current circulating supply and cannot by itself indicate the amount of IOTX available for trading at a given time. The documentation also states that Burn-Drop burns a portion of IOTX and distributes corresponding tokens to stakers in specified new IoT device registration scenarios. Burning reduces the amount burned, while distribution changes the destination of tokens; neither should be confused with maximum supply.

Question 6

Is IOTX the same across different networks?

Accepted Answer

Native IOTX is an asset on IoTeX L1; token representations of IOTX may also exist on networks such as Ethereum and Base. They use the same name, but their chains, technical representations, and application environments in which they can be used differ. Before transferring, both the recipient network and the asset version must be checked. Sending a representation from another chain to an address or service that supports only native IoTeX L1 IOTX may result in funds not arriving as expected.

Question 7

Is holding IOTX equivalent to holding project equity?

Accepted Answer

Holding IOTX is not equivalent to holding equity in the IoTeX project. The white paper states that IOTX does not confer dividend, profit, or ownership rights. Transaction fees, validation, smart contract execution, staking, and governance are its network uses; these uses do not constitute commitments of company profits, redemption, or ownership.

Question 8

What is Rau?

Accepted Answer

Rau is the smallest unit of IOTX: 1 IOTX equals 10 to the 18th power Rau. Amounts are recorded on-chain as integer Rau, while wallets usually convert them into IOTX for easier reading. The conversion formula is: IOTX amount = Rau amount ÷ 10^18. For example, 10^18 Rau corresponds to 1 IOTX; this is a unit conversion and does not change the amount or value of the asset.

Question 9

What do delegates do in the IoTeX network?

Accepted Answer

Delegates are network participants that receive support from IOTX holders in the IoTeX staking-voting system. Delegates run the protocol and maintain consensus, with top-ranked consensus delegates validating transactions and producing blocks. Users first stake IOTX and then use that stake to vote in support of delegates; whether delegates can enter top consensus seats depends on election results. The voting choice is therefore connected to actual block-production responsibilities.

Question 10

What is the Burn-Drop mechanism?

Accepted Answer

Burn-Drop is a mechanism designed by IoTeX for IoT device registration: when a new device registration scenario specified in the documentation occurs, the system burns a portion of IOTX according to the rules and distributes corresponding tokens to stakers. It connects specified device onboarding events with two consequences: token burning and distribution to stakers. Not every transaction triggers this mechanism, and the specific amount is subject to the protocol rules in force at the time.

Question 11

What is the relationship between IOTX and smart contracts?

Accepted Answer

A smart contract is a program deployed on a blockchain that executes according to predefined rules. IoTeX nodes require computing resources to execute contract calls, and users pay transaction fees in IOTX corresponding to that computational work. Therefore, both contract calls and ordinary transfers require fees, but the computing resources they consume differ, and the final fees may also differ.

Question 12

How does IOTX support network security?

Accepted Answer

Validators use IOTX staking as a commitment and collateral to help deter dishonest behavior; network nodes receive economic incentives through validating, processing, and recording transactions. Holders can also use staking votes to support delegates. The former is collateral through which nodes directly participate in network security, while the latter is a way for holders to participate in delegate elections; the two should not be confused as the same operation.

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