I recently took a deep dive into the tokenomics of XPL, and the design is indeed quite meticulous.

Let's start with the fundamentals: a total supply of 10 billion tokens, with 40% allocated to ecosystem development. This significant allocation directly paves the way for the project's future growth. The inflation mechanism is also interesting—an initial annual rate of 5%, gradually decreasing to 3% through staking rewards. The key feature is the transaction fee burn mechanism (similar to Ethereum's EIP-1559), creating deflationary pressure to offset inflation. The overall mechanism is quite balanced.

Market response has been extremely enthusiastic. When the mainnet Beta launched on September 25, 2025, it attracted about $250 million in stablecoins within the first hour. Within 24 hours, the on-chain stablecoin volume skyrocketed to around $7 billion. This level of enthusiasm truly indicates strong market support.

However, there are potential risks to consider. The team and investors' tokens are locked for 1 year, and public sale participants' tokens are locked until July 2026. Once these lock-up periods expire, a large influx of tokens will flood the market, which will be the real test. Currently, the staking ratio is high, as everyone aims to maintain the network long-term, but once large amounts are unlocked, the holding logic could reverse. Whether the market can absorb this new supply remains uncertain. The future trend will heavily depend on this variable.