Question: What is Tezos (XTZ)?

Answer: Tezos is a smart-contract blockchain platform where protocol changes are decided via on-chain governance; XTZ (tez) is used for fees, interacting with dApps, and staking.

Question: What is Tezos’ core idea?

Answer: A built-in upgrade mechanism: the network can adopt protocol upgrades through a formal proposal-and-vote process, reducing the need for contentious hard forks.

Question: What are baking and delegation in Tezos?

Answer: Baking is a validator (baker) producing/endorsing blocks and earning rewards; XTZ holders can delegate their stake to a baker without giving up control of their funds, to receive a share of rewards (minus the baker’s fee).

Question: Does XTZ have a maximum supply?

Answer: Tezos has no hard maximum cap; issuance is inflationary as rewards for securing the network.

Question: What are the risks of staking/delegation?

Answer: Key risks include choosing an unreliable baker (fees/irregular payouts) and protocol penalties for malicious validator behaviour (e.g., double baking/double signing), which can result in slashing/penalties and potential losses.

Question: What is XTZ used for in the Tezos ecosystem besides trading?

Answer: It’s used to pay fees, interact with dApps, secure the network via staking, and serve as a base unit of account within the network.

What is Cosmos (ATOM)

Tezos (XTZ) is a Layer-1 blockchain with smart contracts and on-chain governance.

Launch 13.03.2019 Cosmos Hub (cosmoshub-4) — Cosmos SDK / CometBFT (Tendermint), IBC

Who created it

Arthur Breitman; Kathleen Breitman (Tezos / Dynamic Ledger Solutions, DLS).

Why it was created

A self-amending blockchain: protocol changes are adopted through an on-chain proposal-and-voting process, allowing the network to evolve “from within” with a lower risk of contentious hard forks.

How it’s used

Paying network fees for transactions and smart-contract execution on Tezos
Staking/delegation to participate in consensus and earn rewards
Participating in on-chain governance: voting on upgrades and protocol parameters
Using Tezos dApps (DeFi/NFTs/asset tokenisation) with XTZ as a base asset and unit of account

Risks

High price volatility: XTZ behaves like a high-risk altcoin and can drop by double-digit percentages over short periods.
Inflationary issuance (no hard cap): if you don’t stake/delegate, your share of total supply can be diluted by new issuance.
Policy/yield changes via protocol upgrades (including mechanisms such as Adaptive Issuance): reward rules can change through votes and updates.
Legal and regulatory overhang: Tezos’ ICO faced US securities lawsuits and a subsequent settlement (a marker of regulatory sensitivity for investors/platforms).
Governance/reputation risk: historically, there were high-profile disputes over control and governance after the ICO, affecting timelines and market perception.
Ecosystem dependency on Tezos Foundation resourcing decisions: grants and treasury strategy can materially influence development pace and the ecosystem’s financial runway.

FAQ

Question: What is Tezos (XTZ)?: Answer: Tezos is a smart-contract blockchain platform where protocol changes are decided via on-chain governance; XTZ (tez) is used for fees, interacting with dApps, and staking.
Question: What is Tezos’ core idea?: Answer: A built-in upgrade mechanism: the network can adopt protocol upgrades through a formal proposal-and-vote process, reducing the need for contentious hard forks.
Question: What are baking and delegation in Tezos?: Answer: Baking is a validator (baker) producing/endorsing blocks and earning rewards; XTZ holders can delegate their stake to a baker without giving up control of their funds, to receive a share of rewards (minus the baker’s fee).
Question: Does XTZ have a maximum supply?: Answer: Tezos has no hard maximum cap; issuance is inflationary as rewards for securing the network.
Question: What are the risks of staking/delegation?: Answer: Key risks include choosing an unreliable baker (fees/irregular payouts) and protocol penalties for malicious validator behaviour (e.g., double baking/double signing), which can result in slashing/penalties and potential losses.
Question: What is XTZ used for in the Tezos ecosystem besides trading?: Answer: It’s used to pay fees, interact with dApps, secure the network via staking, and serve as a base unit of account within the network.