Plasma is entering the next phase in redefining how money moves. The vaults are locked, and we are now preparing for the upcoming XPL public sale, which begins on Thursday, July 17, at 9:00 AM ET. We outline below the XPL sale process, but also share an insight into the XPL token and the central role it plays in reshaping the global financial system.

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Understanding XPL

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We’re building foundational infrastructure for a new global financial system where money moves at internet speed, with zero fees, and full transparency. Our goal is to bring trillions of dollars onchain, unlocking an open, programmable layer for money itself. XPL is the core asset securing this system. Just as sovereign currencies and central bank reserves underpin traditional finance, XPL safeguards the integrity of this new system and aligns long-term incentives as stablecoin adoption scales.

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XPL is the native token of the Plasma blockchain, which is used to facilitate and be used in transactions as well as rewarding those who provide network support by validating transactions. XPL is similar in these ways to Bitcoin (BTC) on the Bitcoin blockchain or Ethereum (ETH) on the Ethereum blockchain.

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We purposefully designed XPL, from mechanics to distribution to partnerships, with a focus on network and campaign incentives designed to scale Plasma’s reach beyond crypto audiences and into traditional financial institutions and legacy systems. By building the network from the ground up, we’ve introduced technical and economic mechanisms that position XPL as a foundational asset with opportunities to drive ecosystem expansion in ways not yet seen in prior network models.

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XPL Distribution

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The initial supply will be 10,000,000,000 XPL at mainnet beta launch, with programmatic increases further described in the "Validator Network" section below. The XPL distribution and unlock schedules are as follows.

XPL Public Sale — 10% (1,000,000,000 XPL)

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We want to redefine how money moves with you, so earlier this year, we announced the XPL public sale, where 10% of the XPL supply (1,000,000,000 XPL) was allocated to participants in the deposit campaign. XPL sold in the public sale are unlocked as follows: 

• XPL purchased by non-US purchasers are fully unlocked upon launch of the Plasma public mainnet beta.
• XPL purchased by US purchasers are subject to a 12-month lockup and will be fully unlocked on July 28, 2026. 

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Ecosystem and Growth — 40% (4,000,000,000 XPL)

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Plasma has an opportunity to rewrite existing financial systems, but it’s admittedly a capital-intensive endeavor. We plan to leverage XPL to intensify Plasma’s network effects, not just in crypto-native ecosystems, but across traditional finance and capital markets as well. 

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While nobody has quite solved the riddle of network adoption, we believe that our streamlined approach in responsibly deploying XPL will contribute to widespread network effects that most crypto-native projects have failed to sustain over the long term. 

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The XPL reserved for Ecosystem and Growth are unlocked as follows: 

• 40% of the XPL supply (4,000,000,000 XPL) is allocated to strategic growth initiatives that are designed to expand the utility, liquidity, and institutional adoption of the Plasma network. 
• 8% of the XPL supply (800,000,000 XPL) will be immediately unlocked at Plasma’s mainnet beta launch to provide for certain DeFi incentives with strategic launch partners, liquidity needs, support exchange integrations, and to implement early ecosystem growth campaigns. 
• The remaining 32% (3,200,000,000 XPL) unlocks monthly on a pro-rata basis over the following three-year period, such that 100% of the Ecosystem and Growth allocation is unlocked on the date that is three years from the launch of the public mainnet beta.

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Team — 25% (2,500,000,000 XPL)

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Rewriting legacy financial systems requires industry-leading talent and attracting that talent requires long-term incentive alignment. As such, we’ve allocated 25% of the XPL supply (2,500,000,000 XPL) to incentivize current and future service providers. In addition to vesting schedules tied to start dates, the XPL allocated to the team are unlocked as follows: 

• One-third of the XPL team tokens are subject to a one-year cliff from the date of the public launch of Plasma mainnet beta. 
• The remaining two-thirds are unlocked monthly on a pro-rata basis over the following two-year period, such that 100% are unlocked on the date that is three years from the date of the public launch of Plasma mainnet beta.

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Investors — 25% (2,500,000,000 XPL)

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In order to build a blockchain infrastructure that will underwrite our mission to rewrite financial legacy systems, we needed to raise capital from the world’s leading investors. As such, Plasma received investments from high-caliber investors such as Founder’s Fund, Framework, and Bitfinex, among others, to support the development of the Plasma blockchain. In addition to high-caliber investors, Plasma has also pushed a community-aligned approach from day 1 with the first Echo sale to private investors in the seed round. XPL sold to investors are unlocked on the same schedule as the team allocation.

Validator Network

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Validators provide core infrastructure services underpinning Plasma, a Proof-of-Stake (PoS) blockchain network. In PoS systems, validators stake their own tokens to earn the right to confirm transactions, update the ledger, and receive protocol rewards. By executing transactions and participating in consensus, validators help Plasma maintain a high-performance, censorship-resistant network optimized for stablecoins.

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Additionally, we plan to implement staked delegation in the future, which allows XPL holders to participate in network consensus by assigning their stake to a validator, earning a share of the rewards without running infrastructure themselves. 

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Validators in a PoS model are rewarded for providing core infrastructure services – participating in consensus and signing blocks – to the broader network.

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Inflation Schedule

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In PoS blockchain networks, validator rewards are typically minted by the protocol itself. Most chains, therefore, introduce a controlled rate of token inflation that acts as a security budget, paying validators for the capital they stake and the computing resources they contribute to the network.

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When we designed the XPL validator rewards system, we focused on two objectives: (i) keeping validator economics attractive so that the network would be secured by industry-leading participants and (ii) limiting long-term dilution for XPL holders. As such, the rewards mechanics are as follows: 

• Validator rewards begin at 5% annual inflation, decreasing by 0.5% per year until reaching a long-term baseline of 3%.
• Inflation only activates when external validators and stake delegation go live
• Emissions are distributed to stakers via validators. Locked XPL held by the team and investors are NOT eligible for unlocked rewards.

To limit long-term dilution for XPL holders, Plasma follows the EIP-1559 model: base fees paid to transact on the Plasma blockchain are permanently burned. As usage grows, this mechanism is designed to balance new emissions and combat overall inflation.

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More details regarding validator rewards will be published before inflation and rewards go live. Any change to the validator rewards and inflation schedule will need to be approved by a vote of the validators once the staked delegation and expanded validator system is live.

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XPL Public Sale

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As we enter the public sale for XPL, where 10% of the XPL supply (1,000,000,000 XPL) was allocated to participants in the deposit campaign, it is imperative to look back at the sale allocation distribution

• 4000+ wallets participating
• Median deposit value of ~$12,000

As of today, depositors are no longer able to deposit or withdraw their deposited assets from the Veda vault until Plasma’s mainnet beta launch, at which point in time, funds can be withdrawn to the Plasma blockchain.

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XPL Sale Timeline

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We are selling 10% of XPL total supply (1,000,000,000 XPL) at a $500M valuation. The XPL sale will begin on Thursday, July 17 at 9:00 AM ET and end on Monday, July 28 at 9:00 AM ET. All XPL sale participants must complete KYC and onboarding via Sonar by Echo in order to participate.

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As vault balances are not eligible to be used for the sale, make sure you have separate funds ready in your connected wallet in order to participate in the sale.

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Allocations and Overcommitments

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Depositors who (i) secured an allocation during the deposit period and (ii) successfully completed onboarding through Sonar are guaranteed an XPL allocation during the public sale and can commit their funds at any point during the sale window. Additionally, overcommitments are permitted to secure any allocated, but unpurchased XPL.

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At the conclusion of the sale, any unpurchased XPL from reserved allocations will be sold proportionally to participants who commit additional funds, based on their share of total committed funds. To be eligible, you must include the additional funds as part of your commitment during the sale window. This mechanism ensures unused allocation is efficiently reallocated to long-term aligned participants.

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Overcommited capital will be returned to participants after the token sale is completed.

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Legal and Compliance

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The XPL sale is open only to depositors in eligible jurisdictions and to those depositors who have successfully completed the KYC or KYB processes through Sonar. US persons may participate in the sale only after verifying their accredited investor status. Any XPL purchased by US persons will be locked for 12 months after the public sale concludes.

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Disclosures

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This blog post is for informational purposes only and is not, and is not intended to be, an offer or sale of securities or XPL. Any offer or sale of XPL will only be done subject to the applicable terms and conditions, which will be available upon the opening of the sale window, and pursuant to XPL Purchase Terms, which will be available upon the closing of the sale window for those participants who have proven their eligibility via Sonar by Echo. Sonar provides infrastructure services to Plasma only and does not conduct any offer or sale of XPL.

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We do not consider the offer or sale of XPL to be securities transactions but due to the lack of clarity of applicability of the securities laws in the United States and foreign jurisdictions, only those participants who have proven their eligibility via Sonar by Echo will be considered as eligible participants. XPL has not been registered under the US Securities Act of 1933 or any state securities laws and are being offered in reliance on exemptions from registration. As such, they are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable laws.

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‍The Plasma website and the information contained herein are for informational purposes only. Information contained herein contains “forward-looking statements” that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance and are not statements of historical facts. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made and involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Neither Chain Technologies Research nor Plasma Foundation can provide any guarantee or certainty with respect to any forward-looking statement.