What is XELIS (XEL)?

Quick Facts

  • Native token: XEL, used for fees, smart contracts, and asset creation
  • Consensus: Proof-of-Work with ASIC-resistant XelisHashV3 algorithm
  • Block structure: BlockDAG — parallel blocks, ~5-second block time
  • Privacy tech: Homomorphic Encryption and Zero-Knowledge Proofs
  • Smart contracts: Powered by the Xelis Virtual Machine (XVM) and Silex language
  • Launch: Mainnet officially launched in April 2024; project began in 2021
  • Funding: No premine; developer fee starting at 10% of block rewards, decreasing over time
  • Built in: Rust programming language for memory safety and performance

Introduction

XELIS is a Layer-1 blockchain designed to combine privacy, scalability, and smart contract functionality in a single, purpose-built network. It positions itself as the world's first BlockDAG with native privacy features and smart contract support, all built from scratch with no reliance on existing frameworks.

The native token, XEL, fuels every action on the network — from paying transaction fees and deploying smart contracts to creating new confidential assets.

History & Background

The XELIS project was initiated in 2021 by a decentralized team of developers aiming to build a more secure, private, and scalable alternative to existing blockchains. The team is community-driven, with no backing from any corporation or venture fund.

After years of development, the mainnet launched in April 2024, bringing its full suite of features — BlockDAG consensus, homomorphic encryption, and smart contracts — to the public for the first time.

How XELIS Works

At its core, XELIS replaces the traditional linear blockchain with a BlockDAG (Directed Acyclic Graph) structure. Instead of discarding competing blocks, the DAG merges them, drastically reducing orphaned blocks and increasing transaction throughput.

Privacy is enforced at the protocol level using Homomorphic Encryption and Zero-Knowledge Proofs. This means transaction amounts and wallet balances are encrypted on-chain — nobody except the involved parties can read them, yet they remain mathematically verifiable.

Mining uses XelisHashV3, a memory-hard algorithm resistant to ASICs and FPGAs, keeping the network accessible to CPU and GPU miners and supporting decentralization.

Tokenomics

XEL is the single native asset of the XELIS network. It is used to pay transaction fees, deploy smart contracts, and create new Confidential Assets — custom tokens that inherit the same privacy protections as XEL itself.

There was no premine. Instead, all XEL is distributed through mining. A developer funding fee — starting at 10% of each block reward and decreasing over time — ensures ongoing protocol development without requiring external investment.

Circulating supply ? 5.65 million XEL
Total supply ? 5.65 million XEL
Max supply ? 18.40 million XEL
Updated 6d ago

Ecosystem & Use Cases

XELIS supports smart contracts through its custom XVM (Xelis Virtual Machine), which runs programs written in Silex, a language designed specifically for the platform. Developers can build decentralized applications and issue Confidential Assets that carry full privacy by default.

The ecosystem also includes a planned native decentralized exchange called Xelis Forge, designed to operate directly on the Layer-1 network without bridges or wrapped assets.

Team, Governance & Community

XELIS is a community-driven project with no corporate parent. Development is funded transparently through the on-chain developer fee, and the community has input into how those funds are allocated.

The project maintains active channels on Discord, Telegram, and X (Twitter), with a growing developer and miner community since mainnet launch.

Advantages

  • Privacy by default: Encrypted balances and transfer amounts for all users and all assets
  • BlockDAG scalability: Parallel block processing reduces bottlenecks and orphaned blocks
  • Fair mining: ASIC-resistant PoW algorithm levels the playing field for CPU/GPU miners
  • No premine: All coins earned through mining; no early investor advantage
  • Confidential Assets: Custom tokens inherit native-level privacy automatically
  • Built in Rust: Memory-safe codebase reduces common security vulnerabilities

Risks & Challenges

  • Regulatory scrutiny: Privacy-focused blockchains face increasing regulatory pressure in multiple jurisdictions
  • Adoption competition: Established privacy coins (Monero) and BlockDAG networks (Kaspa) already have large user bases
  • Custom ecosystem: Silex and XVM are proprietary, meaning developers must learn new tools rather than reusing existing ones
  • Early-stage network: As a recently launched chain, liquidity and developer tooling are still maturing

Long-Term Vision

XELIS aims to become a high-performance, privacy-first financial infrastructure layer that is practical for everyday use. The roadmap includes maturing the XVM smart contract environment, launching Xelis Forge as a native DEX, and expanding the Confidential Assets standard so that all tokens on the network benefit from the same level of privacy as the base coin.

Frequently Asked Questions

XELIS is a Layer-1 BlockDAG blockchain built from scratch in Rust, combining privacy through homomorphic encryption, smart contract support, and proof-of-work mining. XEL is its native token used for fees, smart contracts, and asset creation.

Unlike Monero, XELIS combines privacy with a BlockDAG architecture and smart contract capabilities through its own virtual machine (XVM). This allows developers to build decentralized applications and issue private custom tokens on the same network.

A BlockDAG (Directed Acyclic Graph) allows multiple blocks to exist and be accepted in parallel rather than in a strict linear sequence. XELIS uses this structure to reduce orphaned blocks, improve transaction throughput, and achieve faster ~5-second block times.

XELIS encrypts wallet balances and transaction amounts on-chain using Homomorphic Encryption and Zero-Knowledge Proofs. Only the parties involved in a transaction can read the details, while the network can still verify correctness without decrypting the data.

No. XELIS had no premine, no ICO, and no early investor allocation. All XEL enters circulation through proof-of-work mining, with a decreasing developer fee taken from each block reward to fund ongoing development.

Confidential Assets are custom tokens issued on the XELIS network. They automatically inherit the same privacy protections as the native XEL coin, meaning their balances and transfers are also encrypted on-chain.

Developers use the Xelis Virtual Machine (XVM) and a custom programming language called Silex to write and deploy smart contracts. The platform also supports a mainnet, testnet, and devnet environment for different stages of development.

XELIS uses a Proof-of-Work consensus with XelisHashV3, a memory-hard algorithm designed to resist ASICs and FPGAs. This keeps mining accessible to ordinary CPU and GPU participants, promoting network decentralization.