Tezos launched its mainnet in 2018 as a Layer 1 built around on-chain governance. Its defining idea is self-amendment: the protocol can adopt upgrades through a formal on-chain voting process rather than requiring a contentious hard fork.
Total value locked (DeFi)
$22.3M
Value locked in DeFi protocols on Tezos. Updated Jun 8, 2026. Source: DefiLlama.
Tezos uses Liquid Proof of Stake, where validators known as bakers stake XTZ to produce and attest blocks. Token holders who do not run a node can delegate their XTZ to a baker without giving up custody, sharing in rewards. Protocol upgrades are proposed and voted on entirely on-chain, then applied automatically if they pass.
Consensus: Liquid Proof of Stake
Tezos uses Liquid Proof of Stake, where validators known as bakers stake XTZ to produce and attest blocks. Token holders who do not run a node can delegate their XTZ to a baker without giving up custody, sharing in rewards. Protocol upgrades are proposed and voted on entirely on-chain, then applied automatically if they pass.
Self-amendment
Tezos can upgrade its own protocol through an on-chain process. Proposals are submitted, voted on by stakeholders, and activated automatically, which avoids the contentious hard forks seen on some other chains.
Baking and delegation
Validators called bakers stake XTZ to secure the network. Holders can delegate their stake to a baker while keeping custody of their tokens, sharing in the rewards.
On-chain governance
Decisions about how the protocol evolves are made by stakeholders voting on-chain, giving token holders a direct role in the network's direction.
Formal verification
Tezos smart contracts use the Michelson language, which is designed to support formal verification, an approach aimed at mathematically checking contract behavior.
Ecosystem & usage
What Tezos is used for.
Tezos is used for tokens, NFTs, and DeFi, and has seen particular activity in digital art and collectible NFT communities as well as institutional tokenization projects.
Tezos has a built-in, on-chain process for proposing and voting on protocol upgrades. If a proposal passes, it is applied automatically, so the chain can evolve without the hard forks that other networks rely on.
What is baking on Tezos?
Baking is the Tezos term for validating. Bakers stake XTZ to produce and attest blocks and earn rewards. Holders who do not bake themselves can delegate their stake to a baker.
Can I delegate XTZ without losing custody?
Yes. Liquid Proof of Stake lets holders delegate their XTZ to a baker for staking rewards while keeping the tokens in their own wallet.
What is XTZ used for?
XTZ is the native token, used to pay transaction fees, for baking and delegation, and for voting in on-chain governance.
Can I hold XTZ in Zypto App?
Not yet. XTZ isn't in Zypto App at the moment. You can hold it in any self-custodial wallet, and you can ask us to add Tezos using the "Request Tezos" button above.
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