XL1 is a practical token for XYO's first layer network, which is the first scalable data blockchain to introduce verifiable information to the chain. XL1 is used to pay gas fees and transaction fees (partially will be destroyed through the activity mechanism), drives smart contracts, decentralized applications and validator rewards, supports cross-chain bridging/packaging functions, and encourages participation through pledge and ladder reward mechanisms. The ecosystem adopts a dual token mechanism: XL1 drives on-chain operation; XYO supports the contributor network - covering reward mechanisms, staking governance and security guarantees. XYO's decentralized oracle network (DePIN) is composed of tens of millions of nodes, combining location proof and source proof technology to provide trusted data support for artificial intelligence, real-world assets, geospatial intelligence and location-based games.