The Edge Network represents a next-generation blockchain ecosystem designed for speed, scalability, and user-centric economics. At the heart of this infrastructure are two key tokens: $XE**, the native coin of the XE Blockchain, and **$EDGE, its ERC-20 counterpart on Ethereum. Together, they power a seamless, secure, and efficient environment for decentralized services, staking, governance, and cross-chain interoperability.
This guide breaks down the tokenomics of the Edge ecosystem, explaining how value flows between chains, how fees and incentives are structured, and how users can participate in network growth—while maintaining full transparency and decentralization.
What Is $XE?
$XE is the native cryptocurrency of the XE Blockchain, a Layer 1 solution engineered for high-speed transactions with resource-based allocation. Unlike traditional blockchains that charge per transaction, the Edge Network enables free on-chain activity within its ecosystem, removing friction for developers and end users alike.
$XE is primarily used for:
- Purchasing Edge services
- Staking to run or support network nodes
- Participating in decentralized governance
- Earning rewards as a node operator
Importantly, $XE is **not** part of the circulating supply of $EDGE. Every time $EDGE is bridged into the network and converted to $XE, that token is effectively removed from circulation—creating a deflationary pressure on $EDGE over time.
👉 Discover how bridging tokens can unlock new utility across chains.
Transaction Model: Free Usage with Strategic Fees
One of the defining features of the Edge Network is feeless internal transactions. Users can transfer assets, interact with dApps, and execute smart contracts without paying gas—making it ideal for microtransactions and high-frequency applications.
However, to prevent abuse such as spam or flood attacks, there’s an active governance proposal to introduce minimal transaction fees that would be burned rather than distributed. This approach maintains low costs while enhancing network security through economic disincentives.
When moving value across chains via the Edge Bridge, fees do apply—but they’re optimized for efficiency:
- Outbound transfers (from Edge to Ethereum): Fee paid in $XE
- Inbound transfers (to Edge from Ethereum): Fee paid in the source chain’s native token (e.g., $ETH)
Users can set their desired fee level, and the bridge dynamically routes transactions to meet those targets—ensuring cost-effective execution.
Service Purchases Using $XE
All Edge Network services—ranging from data storage to API access—are available for purchase directly in $XE. This creates a closed-loop economy where demand for services naturally drives demand for the native token.
Because $XE is not tradable off-chain, its utility is tightly coupled with actual network usage, promoting long-term stability and reducing speculative volatility.
Node Staking and Proof of Stake Security
The Edge Network operates on a Proof-of-Stake (PoS) consensus mechanism. To contribute as a node validator, participants must stake a minimum amount of $XE. These stakes are locked for the duration of node operation and serve as collateral against malicious behavior.
If a node is found to act dishonestly—such as attempting double-signing or downtime beyond tolerance—their stake may be slashed (partially or fully penalized). Slashed tokens are sent to a zero address and permanently burned, reinforcing network integrity.
This model ensures that only committed, reliable actors maintain the network, aligning incentives between validators and ecosystem health.
Governance Participation
Decentralized governance allows token holders to shape the future of the Edge Network. To vote on proposals—including upgrades, fee structures, or treasury allocations—users must lock $XE in the system.
This stake can either come from an active node or be dedicated solely to governance (unassigned stake). Either way, participation requires skin in the game, preventing sybil attacks and ensuring decisions reflect genuine stakeholder interest.
Proposal creation requires a small fee, which is directed into the Growth Fund—a community-controlled pool supporting development, adoption, and education initiatives.
Revenue Distribution: Burn, Buyback, and Growth
The Edge Network employs a multi-tiered revenue model to sustain long-term value accrual:
🔥 75% Burn Mechanism
Three-quarters of all network revenues—generated from service fees, bridge usage, and other activities—are permanently burned by sending them to the zero address: xe_0000000000000000000000000000000000000000
This occurs monthly and reduces the total effective supply of $XE in circulation, increasing scarcity over time.
💡 Buyback and "Make" Program
Remaining revenues (in fiat or crypto) are allocated to two funds:
- Dev Fund: Supports core protocol development and maintenance
- Growth Fund: Funds marketing, partnerships, grants, and ecosystem expansion
This dual approach ensures both technical sustainability and community-driven growth.
What Is $EDGE?
$EDGE is an ERC-20 utility token on the **Ethereum blockchain**, serving as the primary entry point to the Edge ecosystem. It is fully fungible, tradable on decentralized exchanges, and backed 1:1 by $XE on the XE chain.
Every time you bridge 1 $EDGE** into the Edge Network, you receive **1 $XE. Conversely, when bridging out, 1 $XE converts back to 1 $EDGE. This pegged relationship ensures price parity and trustless interoperability.
Once $EDGE is bridged in, it’s locked in a secure hot wallet (0x956...), backed by a cold wallet (0x8f18...) for operational safety.
As of now, **over 85% of all $EDGE tokens** exist as $XE on the Edge Network—meaning most supply is already locked and actively securing or powering the system.
👉 Learn how cross-chain bridges are reshaping decentralized finance.
How Services Are Purchased with $EDGE
Users can buy Edge services using $EDGE directly. Upon purchase:
- The $EDGE is automatically bridged into the Edge Network
- Converted 1:1 into $XE
- Used to fulfill the service request
This process reduces the circulating supply of $EDGE with every transaction—a built-in deflationary mechanism tied directly to real-world usage.
For broader accessibility:
- Payments via Visa/Mastercard are accepted
- Other cryptocurrencies can also be used
These non-native payments are first converted into $EDGE before being bridged into the network and swapped for $XE—ensuring all economic activity ultimately flows through the core token model.
Liquidity Mining and Incentives
An $EDGE/ETH liquidity pool exists on Uniswap, co-funded by the network treasury and individual liquidity providers (LPs). Each trade on Uniswap incurs a small fee, which accumulates in a reserve. LPs earn a proportional share of these fees based on their contribution to the pool.
Additionally, every cross-chain transaction via the Edge Bridge includes a 0.75% fee denominated in $XE. This fee is collected in a dedicated vault wallet:
xe_4845075Ad790DD979Ab3f7834Ff507244e7a5449
These funds may be used for future buybacks, burns, or ecosystem incentives—subject to governance approval.
Monitoring Tokenomics Transparently
Transparency is central to trust in decentralized systems. The Edge Network provides real-time visibility into key economic metrics through its public blockchain explorer.
Available endpoints include:
- Maximum supply
- Circulating supply
- Burn totals
- Treasury balances
To retrieve raw data (e.g., for analytics or dashboards), append ?raw=true to any API URL:
https://xe.network/api/supply/maximum?raw=true
This open-data approach empowers researchers, investors, and developers to audit network health independently.
Frequently Asked Questions (FAQ)
What is the difference between $XE and $EDGE?
$XE is the native coin of the XE Blockchain (Layer 1), used for staking, governance, and services. $EDGE is its ERC-20 representation on Ethereum, used for trading and initial access to the ecosystem. They are pegged 1:1 via the Edge Bridge.
Are transactions really free on the Edge Network?
Yes—internal transactions within the Edge Network incur no fees. However, cross-chain bridging involves variable gas fees paid in either $XE (outbound) or the source chain’s token like $ETH (inbound).
How does staking work in the Edge Network?
Users stake $XE to run validator nodes or participate in governance. Stakes are locked during operation. Misbehaving nodes face slashing penalties; confiscated tokens are burned.
Why is 75% of revenue burned?
The burn mechanism reduces circulating supply over time, creating deflationary pressure that benefits long-term holders and aligns incentives with sustained network usage.
Can I use credit cards to buy Edge services?
Yes. Visa and MasterCard payments are supported. These are converted into $EDGE before being bridged into the network as $XE for service fulfillment.
Where can I track live tokenomic data?
Use the Edge Network Explorer to monitor real-time metrics like supply, burns, treasury funds, and more. API endpoints allow programmatic access with ?raw=true parameter support.
By combining free transactions, strong economic incentives, transparent governance, and a deflationary design, the Edge Network sets a new standard for sustainable blockchain ecosystems. Whether you're a developer, investor, or everyday user, understanding $XE and $EDGE unlocks deeper participation—and greater value creation—in this evolving digital economy.
👉 Start exploring how utility tokens are redefining decentralized ecosystems today.