The design is for self-correcting governance where “the network itself can propose, vote, adopt, and activate protocol upgrades”. From an economic system perspective, this is not a simple technology upgrade structure, but a mechanism that adjusts protocol parameters, fees, consensus, and staking policies to the on-chain political economy. The Tezos official document also explains that anyone can participate in proposals and voting through XTZ, and that it uses a PoS system where bakers receive block creation and verification rewards. (Tezos Documentation) 1. Tez / XTZ on-chain state mapping: Existence.
Tezos has proven on chain upgrade capacity, but maturity depends on Tezos X and Etherlink converting into fees, TVL, and users.
Investment View
Investment View: Tezos is less about the self amending L1 story now, and more about Etherlink demand and durable revenue.