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.
Investment View
Bakers maximize rewards by staying online, block production, attestation, and DAL participation. Stakers manage compensation and slashing risk through reliable delegate selection. The delegate participates indirectly by delegating voting/baking power to the baker. Developers expand the ecosystem through protocol upgrade, TZIP, Smart Rollup, and FA2 token standard. Governance participants directly influence protocol evolution. [Inference] Tezos’ reward system is not simply “paying tokens to validators,” but is evolving to gradually integrate L1 security, governance, L2 scalability, and development standards into one reward system. XTZ or tez is the native token of Tezos and is a common unit of fee payment, staking...
Source PDF
The PDF report is available alongside the slide viewer.
Report Type
Crypto Economy Analysis
Version
v1
Analysis Date
May 26, 2026
Language
en
Disclaimer: This report is generated through AI-powered analysis and market data. This is not investment advice. All investment decisions should be made at your own risk.