Summary, History and Status of Tezos (XTZ) — 2024 Edition

Summary, History and Status of Tezos (XTZ) — 2024 Edition

Summary, History and Status of Tezos (XTZ) — 2024 Edition

…and how to make money on it in 2024?

Layer 1 Chains

·

34 min

Summary, History and Status of Tezos (XTZ) — 2024 Edition

…and how to make money on it in 2024?

Layer 1 Chains

·

34 min

Summary, History and Status of Tezos (XTZ) — 2024 Edition

…and how to make money on it in 2024?

Layer 1 Chains

·

34 min

Summary, History and Status of Tezos (XTZ) — 2024 Edition

…and how to make money on it in 2024?

Layer 1 Chains

·

34 min

TL;DR: With a new update or project being released almost every day, it’s clear the crypto ecosystem is constantly evolving. Tezos has gone through a lot of ups and downs to reach the level it’s at today — but it’s just the beginning. Knowing what brought it here and why it was created will lead you to make better decisions when investing or simply using Tezos.

In this article, we’re gonna dive into the Tezos ecosystem, answer all the $XTZ related questions and even more. Prepare yourself for a history lesson and a journey to the future of Tezos!

What is Tezos (XTZ)?

Tezos is a Layer 1 blockchain created in 2014 by Arthur Breitman and Kathleen Breitman. It is a smart contract platform that is focuses on being highly upgradable. 

Why the focus on upgradability and not scalability? After all, the holy grail of a blockchain is being able to process millions of TPS while maintaining security and decentralization. For Tezos, the ability to upgrade its protocol differentiates it from other blockchains.

The concept of blockchains is not new, and Tezos is one of many such networks. The idea started in 2008 with the release of Satoshi Nakamoto’s Bitcoin Whitepaper. This kicked of the subsequent creation of many different types of networks under the same “blockchain terminology. Despite being similar in concept blockchains have all different architectures and use cases. What all have in common — including Tezos — is that they have to be secure.

Security is the ability of a blockchain to prevent attacks and penalize malicious actors. This is usually done through their consensus algorithm and the mechanism they use to reach finality.

Finality is achieved when a block has been created and is now immutable, meaning that nobody can change the date inside.

Over time many different mechanism have been designed, ranging from Proof of Work, Proof of Stake to novel ones called Proof of Spacetime Each one hopes to achieve the best way of securing the network they are built for.

As noted before, Tezos utilizes a proof-of-stake system known as baking, offering optional delegation that lets stakeholders partake in consensus without relinquishing token custody. This consensus method is dubbed Liquid Proof of Stake due to its flexibility. Tezos allows stakeholders, also known as delegators, to earn rewards by delegating their tez coins without imposing any lock-in or freeze conditions, hence the term "liquid" in reference to its proof-of-stake system.


This proof-of-stake model amplifies scalability, aligns incentives, raises the difficulty and cost of 51% attacks, and sidesteps the environmental inefficiencies associated with proof-of-work.

Tezos distinguishes itself by seamlessly upgrading via in-protocol amendments, eliminating the need for disruptive hard forks. This approach fosters innovation, minimizes potential disputes, and ensures sustained collaboration within the Tezos ecosystem. Developers find confidence in Tezos' lasting functionality, designed for endurance and adaptability.


The amendment process unfolds in four distinct phases, each lasting eight baking cycles, approximately three months from proposal to activation. Any inability to progress to the subsequent phase reverts the network to a Proposal Period, effectively restarting the entire amendment journey. This iterative process has been ongoing since the community embraced the Tezos genesis block in June.

The consensus mechanism that Tezos uses is called Liquid Proof of Stake. This means Tezos gets its security from validators that stake $XTZ to secure the chain. This is different from Proof of Work blockchains, where miners replace the role of validators.

Tezos has a booming ecosystem that grows daily, all powered by its native token. The native token of Tezos, $XTZ, is used actively throughout the network, from validators to users.

Tezos’s has been created with the goal of being an alternative to Ethereum. Ethereum has been created in 2014 and introduced the concepts of smart contracts. These are small applications that run inside a virtual machine called the Ethereum Virtual Machine.

The EVM allows for a blockchain to process more than simple token transfers. To give more info, it opened up the possibility to run applications in a decentralized manner. Applications usually run in the cloud or on your computer, so running them on a blockchain was unheard of at the time. This makes them uncensorable (nobody can stop them) and ensures they’re always online — as long as the chain they run on is processing transactions.

Tezos is based on a different EVM architecture than the one created by and used in Ethereum. While similar to Ethereum, it implements a some new improvements to the protocol.

Tezos, unlike Ethereum, has its own distinct blockchain and programming language—Michelson. This low-level stack-based language is at the core of Tezos' smart contract development, but higher-level languages like SmartPy, Michelson, and Ligo can be used for easier coding, ultimately compiling to Michelson for execution on the blockchain.


Tezos sets itself apart with a strong focus on security through formal verification—a method to mathematically prove the correctness of smart contracts, reducing vulnerabilities and enhancing safety. Moreover, it boasts a self-amending mechanism, enabling protocol upgrades without requiring disruptive hard forks.

The LPoS (Liquid Proof of Stake) consensus mechanism ensures inclusivity and decentralization by allowing all token holders to participate in validation without running a full node. This, coupled with its scalability and energy efficiency, positions Tezos as a more sustainable and adaptable platform

The second difference is that Tezos community actively participates in the platform's governance through on-chain voting, showcasing its commitment to a democratic and decentralized decision-making process. With a range of smart contract languages and a growing array of applications, Tezos proves itself as a versatile and promising smart contract platform, gaining traction in DeFi, NFTs, supply chain, and identity management, among others.


Tezos is powered by the XTZ token, a central part of the Tezos ecosystem. XTZ is an inflationary token due to the way its tokenomics have been planned.

The tokenomics of Tezos also specifies a maximum amount of tokens that will ever be created. The maximum amount that will ever be minted by the protocol is 975,383,633 XTZ.

The Tezos inflation rate sits currently at around 4.8% and it has been programmed to never surprass 5.51%. Tezos even came up with the term “adaptive inflation” to describe its tokenomics. 

Tezos ensures consensus security through bakers who stake a security deposit, roughly 7.6% of the XTZ supply, and entice delegations. They receive rewards in blocks and endorsements for their efforts and bonded stake.

Determining the appropriate baker rewards is a challenge. To address this, a yearly reward of about 4.6% of the supply is granted to bakers. Initially, security deposits were around 10%, and rewards were 5.5%, but these values haven't scaled with supply growth since the launch.

With a 4.6% reward on a 7.6% stake, bakers effectively gain a 60% annual return on their stake, excluding node operating costs. However, fierce competition among bakers to attract delegations means a significant portion of these returns goes to delegators. Assuming bakers distribute about 85% of rewards to delegators and with 75% of the network delegating, each delegate receives approximately a 5.2% reward, exceeding the 4.6% inflation. Overall, this results in roughly a 0.6% deflation.

Because Tezos is being controlled by the XTZ token holders and validators, its tokenomics may be subject to change as the collective deems appropriate. 

For more details about how you can earn more Tezos by running a validator node at home check out our Tezos Mining & Staking guide. It includes the exact steps and best methods of earning more crypto like $XTZ in 2022 and beyond.

When was Tezos (XTZ) created?

Tezos (XTZ) was created by Arthur Breitman and his wife Kathleen. Work began on the Tezos chain in 2014, but before that, a couple of important events happened. Most events revolve around the two Tezos co-founders.

The first meaningful event was Arthur’s journey into the early Bitcoin space.


Arthur Breitman was an early follower of the cryptography mailing list where Bitcoin's introduction was made. His familiarity with Bitcoin dates back to around 2011, and from then on, he engaged in continuous discussions about it. This exposure and interest in cryptocurrencies had been enduring. However, during the initial presentations of cryptos, they were viewed as uncertain pursuits. 

Despite finding crypto intriguing, the potential was not immediately recognized. Instead, cryptocurrencies remained a captivating and stimulating concept, aligning with certain principles and interests that both Arthur and his wife speaker share.

Arthur extensively delved into online discussions regarding Bitcoin, immersing himself in debates both supporting and critiquing the concept. This deep dive prompted two main lines of thought: firstly, assessing the viability of Bitcoin as a concept, and secondly, envisioning enhancements to the existing Bitcoin model. 

This phase of intense exploration primarily unfolded during 2012-2013. Arthur’s engagement with this topic was persistent, marked by continuous conversations and hands-on exploration of the codebase. However, during this period, it didn't manifest into a fully-fledged cryptocurrency. Tezos, as a distinct project, began to take shape a little later.

Another meaningful event is Arthur Breitman’s release of two whitepapers papers proposing Tezos.


Released in 2014, under the pseudonym "L. M Goodman" akin to Bitcoin's anonymous founder, Satoshi Nakamoto, the papers critiqued Bitcoin’s design flaws. Breitman's vision birthed Tezos, a groundbreaking "self-amending" cryptocurrency, creatively named through a unique algorithm. Tezos aimed to transcend the issues faced by other cryptocurrencies and emerge as the ultimate and final solution.

Tezos operates as a distributed, peer-to-peer, permissionless network with a smart contract foundation similar to Ethereum. Yet, it claims to be more sophisticated, boasting a protocol that can evolve and incorporate innovations seamlessly, avoiding the pitfalls of hard forks. The Tezos ethos was about unity and progress, seeking to avoid fragmentation and constant coin launches.

This cryptocurrency embraces a democratic approach, allowing developers to propose protocol upgrades and seek rewards for their contributions. Tezos token holders, often referred to as "tezzies" or XTZ, possess voting power proportional to their token holdings, reflecting a democratic consensus in action.

Distinguishing itself further, Tezos utilizes a proof-of-stake (PoS) system, eliminating the need for energy-intensive mining hardware and aligning with virtual validations, known as 'baking.' This emphasizes efficiency and sustainability, crucial elements for modern blockchain.

To fortify its standing on the security front, Tezos implemented formal verification, a feature absent in Ethereum. This groundbreaking approach enables developers to mathematically validate the accuracy of their smart contract code, enhancing the platform's overall security posture.

In Breitman's foresight, Tezos was not just another cryptocurrency but a dynamic and evolutionary force shaping the future of blockchain with a foundation of unity, security, and sustainability.

After validating their idea, Arthur Breitman together with his wife, Kathleen, began building today’s Tezos blockchain and codebase.

In August 2015, Arthur Breitman, still employed at Morgan Stanley, established Dynamic Ledger Solutions, Inc. (DLS) in Delaware, positioning himself as CEO. DLS held the intellectual property, the source code, for Tezos. As per FINRA regulations, Breitman was obligated to report his involvement in "other business activities" due to the U.S. registration, but he failed to do so. This led to a $20,000 fine and a ban from broker-dealer interaction until 2020.

Originally, Arthur Breitman aimed to entice “four to five banks” to adopt Tezos by raising $5 million to $10 million over two to three years. However, this plan fell short in attracting investors. Subsequently, the Breitmans turned to an ICO as a funding strategy, managing to secure $612,000 from early backers for a presale. The ICO was held in Zug, Switzerland, known as ‘Crypto Valley,’ leveraging Switzerland’s regulatory environment.

In this setup, the Tezos Foundation was established in Switzerland to support the open-source software platform, and Johann Gevers, a South African entrepreneur, was appointed as its president. The plan was for the Tezos Foundation to acquire DLS, a Delaware-based company where Arthur was CEO, through a contract after the ICO, which aimed to raise $20 million. When funds were running low before the ICO, Tim Draper invested $1.5 million through Draper Associates and received a minority stake in DLS.


The Tezos ICO, held from July 1 to July 13, raised approximately $232 million, the second-largest ICO at the time. However, it's essential to note that contributors were advised that the funds were considered a "non-refundable donation" rather than a "speculative investment," and there was no guarantee the tokens would be issued. All raised funds went to the Tezos Foundation, while the intellectual property was under the control of the Breitmans' Delaware-based company. 

The original plan detailed that once the foundation purchased the Breitmans' company, the Tezos blockchain would be released under a free software license, and the DLS shareholders were to receive a percentage of the fundraiser proceeds and Tezos tokens issue.

Despite the ups and downs that later ensued, Tezos became one of the earliest Proof of Stake blockchains. Its devoted community has propelled the project in the top 10 cryptocurrencies by market cap and kept the interest alive to this day.

Who created Tezos (XTZ)?

Tezos was created by Arthur Breitman and his wife, Kathleel. The history of Tezos was heavily influenced by the circumstances in which Arthur and Kathleen engineered Tezos Foundation and to this day, it is regarded as one of the most controversial stories in crypto.

Arthur Breitman, recognized as the co-founder of Tezos blockchain, is a prominent computer scientist and entrepreneur. Born in France in 1985, he spent a significant part of his childhood there before relocating to the United States for his college education. Arthur's fascination with finance and programming ignited during his teenage years as he delved into creating trading algorithms for stocks. At the remarkable age of 18, he secured a bronze medal for France in the International Olympiad in Informatics.

For his higher education, Arthur Breitman pursued studies at the École Polytechnique in France, earning a degree in applied mathematics and computer science. Furthering his academic journey, he attended the Courant Institute of Mathematical Sciences at New York University, culminating in a Ph.D. in computer science.

Following the completion of his doctoral studies, he joined the ranks of Goldman Sachs, initially as a quantitative analyst and eventually rising to the position of vice president at Morgan Stanley. In 2014, Arthur made a pivotal decision to leave Goldman Sachs and venture into entrepreneurship, co-founding Dynamic Ledger Solutions (DLS) with his wife Kathleen. 

A notable involvement for Breitman is his co-organizer role and the title of "dear leader" in the New York Anarcho-Capitalist Meetup, where the ideology revolves around radical libertarianism advocating wealth generation, rapid technological progress, and high living standards attributed to capitalism. The group emphasizes a more laid-back approach to opposing government influence.


In 2010, during a crypto-anarchist gathering, Breitman crossed paths with Kathleen McCaffrey, an American college student hailing from New Jersey. Kathleen, identified as a libertarian Republican with early political interest sparked by Rush Limbaugh, later married Breitman in 2013.

Years later, Kathleen Breitman held positions at Bridgewater Associates, a hedge fund, and R3, a blockchain company. She shared her contrasting experiences at these organizations in a July post on legalinsurrection.com. Bridgewater Associates chose not to respond to inquiries.

Arthur Breitman demonstrated an early appreciation for Bitcoin since its inception around 2009. However, he recognized imperfections in the underlying blockchains of cryptocurrencies, particularly their challenges in upgrades and security. Driven by this realization, he aspired to develop a superior alternative.

During the summer of 2014, Arthur Breitman, while employed in quantitative finance at Morgan Stanley, unveiled two papers online outlining his groundbreaking vision for a novel blockchain. He named this innovation Tezos, a moniker coined using an algorithm he devised to find pronounceable names for unclaimed websites.

Although the papers were published under the alias "L. M Goodman," there was no doubt about his authorship. In an early 2015 email to an acquaintance, Breitman revealed his aspirations to establish a business centered around Tezos while maintaining a low public profile to avoid any conflict with his role at Morgan Stanley.

A glance at the "Tezos Business Plan" from early 2015 revealed Breitman designated as the CEO. The plan forecasted substantial growth, envisioning the company's worth between $2 billion and $20 billion if it thrived for 15 years. By year three, Breitman was slated to receive a salary of $212,180 according to the budget. In August 2015, while still at Morgan Stanley, Breitman established Dynamic Ledger Solutions Inc, abbreviated as DLS, in Delaware to spearhead Tezos' development, assuming the position of chief executive.

The U.S. Financial Industry Regulatory Authority (FINRA) mandates registered securities professionals to notify their employer in writing about any outside business activities that hold a "reasonable expectation of compensation." Records from FINRA indicated Breitman was registered but hadn't reported any "other business activities." Morgan Stanley and FINRA refrained from commenting on this matter.

Kathleen Breitman later asserted that all requisite disclosures had been appropriately made. She emphasized that initially, Tezos was more of a hobby, not intended for substantial commercialization. She acknowledged engagements with high-ranking bank executives but downplayed them, characterizing them as not particularly significant.

As the ICO progressed, funding started to deplete. Kathleen engaged in discussions with Tim Draper, a prominent founding partner of Silicon Valley's DFJ venture capital firm and a dedicated advocate of Bitcoin. Draper, through his firm Draper Associates, infused $1.5 million into the project, securing a minority stake in DLS, the entity overseeing the Tezos source code.

Simultaneously, the Breitmans enlisted the services of U.S.-based communications company Strange Brew Strategies to bolster their project's visibility. On May 5, Reuters published a news story featuring Draper's involvement. During the media pitch, John O'Brien, a principal at Strange Brew, made assertions about Tezos' progress. He claimed, "The applications of Tezos, ranging from derivatives settlement to micro-insurance, are real and acknowledged by industry giants like Ernst & Young, Deloitte, LexiFi, etc., who have embraced Tezos in their development environments and labs.”

However, subsequent clarifications contradicted these statements. A spokesperson from Ernst & Young stated that the assertion was inaccurate, confirming that EY had not adopted Tezos. Likewise, Deloitte conveyed that while they were considering various blockchain technologies, Tezos was still in its early stages and hadn't been utilized for any client projects. Jean-Marc Eber, CEO of LexiFi, also refuted the claim, expressing that while there had been informal contacts, LexiFi had not integrated Tezos' technology into their development environment or labs.

In 2015, Arthur Breitman aimed to establish "Tezos Inc." and form a consortium of four to five banks to adopt and fund the technology. The outlined business plan sought to secure $5 million to $10 million over a span of two to three years.

During this time, the blockchain technology was garnering interest from significant financial institutions due to its potential to streamline burdensome back-office processes, notably in the realm of securities trades clearing and settlement. Tezos' comprehensive 37-page business plan portrayed it as an "Internet for financial transactions," emphasizing its capacity to automate over-the-counter derivatives trading.

Despite Breitman's endeavors, he struggled to gather adequate financial support, attributing his fundraising setbacks to prioritizing technology development over the allure of a visionary concept, a path many other blockchain startups were taking. He candidly acknowledged, "I guess I was a terrible salesman.”

In April 2016, Arthur parted ways with Morgan Stanley, prompting the Breitmans to devise a new strategy for Tezos—initiating an online fundraiser to distribute digital tokens, maintaining the Tezos blockchain. However, funds were imperative to sustain the project.

Over the subsequent six months, they amassed $612,000 from ten early backers, including several cryptocurrency hedge funds, according to information available on the Tezos.com website.

To orchestrate the ICO, the Breitmans adopted a multifaceted structure. In the earlier part of the year, they played a pivotal role in founding a foundation situated in Zug, Switzerland, famously dubbed "Crypto Valley" due to its abundance of blockchain startups. This entity was in pursuit of not-for-profit status, as revealed in their emails. The foundation's modus operandi, as elucidated in Tezos website documents, entailed raising funds via the ICO and subsequently acquiring DLS, the company under Breitman's control and the driving force behind Tezos' development.

Opting for a Swiss foundation route provided the Breitmans with regulatory oversight, aligned with their objective of avoiding excessive scrutiny. Kathleen Breitman explained their choice, citing Switzerland's regulatory authority as having "sufficient oversight but not like anything too crazy." However, this move raised eyebrows within the realm of Swiss foundation governance, prompting concerns about the clarity of public interest. 

On July 1, 2017, the Tezos Foundation successfully raised a substantial sum of $232 million in Bitcoin and Ethereum through a major initial coin offering (ICO), marking it as one of the largest at that time. These contributions were denoted as "non-refundable donations," a term likened by Kathleen Breitman to a pledge drive where contributors might receive tote bags, although some participants viewed them as investments. If categorized as investments rather than donations, this would come under the scrutiny of the SEC. Post-ICO, the plan was for the Tezos Foundation to financially facilitate the acquisition of DLS. Moreover, if the Tezos blockchain maintained functionality for a minimum of three months, the Breitmans were slated to receive 8.5% of the ICO and 10% of the tokens.

By October, a dispute emerged between the Breitmans and Gevers regarding project control. The Breitmans accused Gevers of pressuring the foundation council into endorsing a contract entitling him to a $1.5 million bonus. Gevers had control over the foundation's assets, amounting to $820 million by December, including the share belonging to the Breitmans. These conflicts caused delays in the Tezos deployment, prompting investors to file lawsuits alleging fraud during the fundraiser and unauthorized securities sales.

In 2018, Gevers resigned and received a severance package of $400,000. Subsequently, the foundation board underwent replacement, and Tezos finally went live in September, marking a significant milestone in its development.

How is the Tezos (XTZ) token used?

The Tezos token is the native token for the Tezos network. Most assets in the Tezos ecosystem are denominated in XTZ, which makes it the default unit of account.

XTZ is the fuel that powers transactions and block creation on the Tezos chain. We sometimes refer to it as “gas”. Its primary use case is securing the network and keeping actors aligned to the same principles. Bakers are users staking at least 8000 XTZ who run a node. Based on their stake, they are elected to validate the next block. 

Bakers get rewarded wth 20 XTZ per block mined. Because Tezos has a quick time to finality and processes more transactions per second the gas fees quickly add up.

Token holders can indirectly participate in protocol governance by delegating their tokens to bakers. Final votes require the participation of owners holding 81% of the token supply. 

Making a transaction on the Tezos network requires a small fee in XTZ, usually between 0.01 and 0.05 XTZ. This small fee is paid by users and goes to validators for doing their work.

Tezos is currently listed on multiple exchanges. The major ones are Binance, Coinbase and Kraken.

If you want to skip ahead and learn how to earn more Tezos by running a validator node at home check out our Tezos Mining & Staking guide. It includes the exact steps and best methods of earning more crypto like $XTZ in 2022 and beyond.

Who is developing Tezos (XTZ) now?

In 2015, the Breitmans founded Dynamic Ledger Solutions (DLS), a pivotal entity entrusted with the task of crafting the initial code that underpins Tezos. DLS made the source code public in 2016, utilizing this codebase to initiate an alphanet version of the Tezos protocol in February 2017, a few months prior to the Tezos token sale.

In 2016, Tezos Foundation was established in Zug, Switzerland. The team planned for the foundation to become a non-profit that would raise money through the ICO and acquire DLS. Currently, Tezos Foundation supports the the Tezos protocol, the development of technical infrastructure on Tezos as well as Tezos adoption through grants. It also acts as the treasurer of the Foundation’s assets. 


Funds are distributed by the Tezos Foundation Council, an entity that is at the same time responsible for the Tezos Foundation as a whole. 

As a large holder of XTZ, Tezos Foundation runs its own bakers and has tremendous influence over the decisions taken by the Tezos community. 

As previously mentioned, the codebase was entirely by Dynamic Ledger Solutions. However, open-source contributors have made their mark on the protocol throughout the years. Most of the contributions have been made with funding from the Tezos Foundation.

Tezos uses a mix of on-chain and off-chain governance in order to upgrade itself. The protocol employs a systematic four-phase amendment process, enabling upgrades without hard forks and promoting decentralized governance.


The process starts with the Proposal Period. Bakers, essential network participants, can submit proposals on-chain, encapsulating proposed changes and their associated information. This includes the proposal's source (the submitting baker), the period of submission, and a hash of the proposal's source files. Bakers can propose up to 20 changes during this period, and their vote is weighed by the number of rolls they possess (staking balance). This encourages a fair voting process.

Following the Proposal Period is the Exploration Vote Period. Here, bakers cast their votes on the proposed upgrades from the previous period. This on-chain voting is facilitated through a Ballot Operation, involving the baker, the specific voting period, the proposed change, and the baker's vote (Yay, Nay, or Abstain). This phase aims for consensus through approval voting, allowing each baker to vote positively on up to 20 proposals. The most upvoted proposal progresses to the next stage.

Upon successful voting, the proposal advances to the Testing Period. A testnet fork runs parallel to the main Tezos chain for 48 hours, rigorously evaluating the proposed upgrade. This parallel run helps ensure the upgrade's safety and validity by verifying the network's ability to transition states correctly. The amendment proposal is sandboxed, preventing system calls, and has limited access to a standard library. While the 48-hour period is an initial evaluation, a similar testnet usually runs off-chain for the remainder of the Testing Period, allowing a deeper assessment.

Finally, the Promotion Vote Period determines the proposal's fate. The network decides whether to adopt the amendment based on off-chain discussions and evaluations. Bakers once again vote using the ballot operation, with their votes weighted proportionally to their staking balance. If the participation rate reaches a minimum quorum and an 80% supermajority of non-abstaining bakers vote "Yay," the proposal is accepted and activated as the new mainnet. If not, the process resets, and a new Proposal Period begins, encouraging a continuous cycle of governance and upgrades.

The off-chain governance side is being explored by Tezos Agora, a discussion forum for community members and bakers. While its impact has been questionable, Tezos has been eager to give ecosystem participants a forum where they can debate.

What are the latest updates on Tezos (XTZ)?

Tezos in 2019

2019 was Tezos’ first year out in the open. After a shaky 2018, the community has finally received its XTZ tokens and was able to participate in protocol governance. This coincided with “Athens,” the first  protocol proposal for the first voted upgrade of Tezos.

One of the key aspects of the Athens proposal involved increasing the gas limit, a cautious parameter set at the platform's launch to ensure the network's integrity and performance. The proposal suggested a doubling of computational steps in each block while maintaining the number of transactions per block. This adjustment aimed to facilitate smoother deployment of smart contracts on the Tezos platform while keeping the gas limit at a conservative level, subject to further benchmarking to ensure optimal results.


In parallel, another proposal under Athens focused on reducing the roll size required for Tezos Proof-of-Stake participation from 10,000 XTZ to 8,000 XTZ. By lowering the threshold, the proposal aimed to make participation in the consensus mechanism more accessible and inclusive. This change, coupled with the gas limit adjustment, was anticipated to enhance the overall functionality and efficiency of the Tezos network.

Nomadic Labs, the team behind these proposals, took a cautious approach to ensure the proposed protocols functioned as intended. Extensive testing and benchmarking were conducted to validate the proposed changes and their effects on the network's behavior. The gas limits were redefined based on a realistic mainnet context while remaining conservative to maintain network stability.

In addition to these proposals, Nomadic Labs introduced a storage improvement feature for Tezos nodes, enhancing performance and sync capabilities through 'Snapshots' and 'History Modes.' This integration was expected to further bolster storage performance and efficiency.

While evaluating these proposals, Nomadic Labs emphasized the importance of assessing their longer-term economic and operational impact rather than focusing solely on short-term migration costs. These proposals represented the initial step in a broader plan to gradually introduce impactful amendments to the Tezos network, laying the foundation for a decentralized and sustainable blockchain ecosystem.

As part of this upgrade, Nomadic Labs also introduced a novel invoicing mechanism, allowing for on-chain funding of development efforts related to protocol proposals. This mechanism was intended to support the development of proposals and encourage decentralization within the Tezos community.

The Athens upgrade underlined the commitment of the Tezos community to gradual and well-considered advancements, aiming to maintain a balance between stability and innovation. This approach set the stage for a promising future, marked by substantial updates that would propel Tezos to the forefront of the blockchain landscape.

Tezos in 2020

In 2020, Tezos had to settle with the SEC over its controversial ICO. In case you’ve missed the context, here’s the scoop:

In December 2017, a group of individuals sued the Tezos Foundation and the Breitmans concerning the fundraising period for the Tezos blockchain launch. The case initially unfolded in various state courts and was later combined into a potential class-action lawsuit in the federal court.

The core concern of the plaintiffs was whether Tezos qualified as a security during the fundraising period. After almost three years of litigation, on March 20, 2020, it was revealed that a settlement agreement had been reached between the plaintiffs and the defendants.

Following this development, the remaining step was for the judge to grant final approval by signing off on the Final Settlement Agreement. The settlement in the Tezos case involved the defendants, including the Tezos Foundation, and private plaintiffs (the SEC was not involved). The defendants, even with the settlement agreement, maintained their position that Tezos was not considered a security offering during the fundraising period. To make everyone happy, Tezos had agreed to settle with the plantiffs for $25 million. 

Towards the end of the year, Tezos community has put forth yet another proposal. 


The Edo proposal for Tezos introduced several notable features. One key aspect was the implementation of an adoption period within the amendment process. This addition aimed to address challenges faced by development teams in updating tools after a successful protocol upgrade. It marked a significant upgrade to the core protocol, amending the self-governing amendment process.

Another important feature was the integration of privacy-preserving solutions like Sapling, offering various flavors of zero-knowledge cryptography, such as zk-SNARKs and zk-SHARKs. This allowed for proving possession of specific information without revealing the information itself. This enhancement provided developers with options to implement privacy-preserving solutions for smart contracts and applications.

Lastly, the Edo proposal introduced "tickets," a versatile mechanism for authenticating data from smart contracts, managing permissions, and representing assets. This feature enabled data tied to a Tezos address to be authenticated by smart contracts, facilitating the creation of composable permission systems. Overall, the Edo proposal aimed to enhance privacy, security, and functionality within the Tezos ecosystem.

Tezos in 2021

2021 was Tezos’s best year to date, reaching an all time high of $9.18. This was heavily influenced by a few key events and updates.

The biggest catalyst was Tezos foraying into the NFT ecosystem. Just as the NFT craze was taking over, developers saw the chance to show up Tezos’ strong points and help it stack up against Ethereum. Furthermore, transaction costs on Tezos were merely $0.20, which prompted creators to release their NFTs on Tezos. 

At some point, Tezos became one of the largest NFT hubs during the 2021 bull run. However, its rise in popularity came with ups and downs.

Hic et Nunc was an early marketplace on the Tezos blockchain, hailed as a cost-effective alternative to Ethereum-centric platforms. However, on November 14, 2021, the platform abruptly closed without official explanation from its accounts. Fortunately, the NFTs listed on Hic et Nunc remain immutable as they are recorded on the blockchain itself.

Following the closure, the Tezos community rallied, creating new avenues for minting and trading NFTs on the Tezos network. Many NFTs initially hosted on Hic et Nunc have found a new home on alternative marketplaces. Despite the closure of Hic et Nunc, Tezos continues to be regarded as a robust and preferred blockchain for trading NFTs.


Initially, Hic et Nunc held the mantle of popularity, but when the platform ceased operations in November 2021, Objkt swiftly ascended to claim the top spot. At present, Objkt stands as the primary and most favored marketplace within the Tezos blockchain. It can be likened to the OpenSea for Tezos NFTs, encompassing a wide array of digital assets like JPEGs, videos, and songs.


While Tezos PFPs haven't achieved the same level of market dominance as Ethereum avatar projects, there are notable large-scale Tezos initiatives worth mentioning. Here are some of the most popular NFTs on Tezos:


Tezzards comprises a collection of 4,200 PFP NFTs inspired by snazzy lizards. While Tezos has seen various avatar collectibles over the years, Tezzards stands out as one of the pioneering PFP projects to gain substantial traction on the blockchain. It has garnered widespread support and remains a regular presence in NFT trading circles.


Fxhash serves as both a generative art platform and a marketplace. Functioning as an open platform, it allows artists to mint generative NFTs without navigating the complexities often associated with traditional generative platforms. The philosophy behind fxhash, as described by its creators, is to create a framework that empowers generative artists to mint their pieces in a generative manner, fostering inclusivity without stringent curation.


Dogami represents both an NFT collection and a metaverse game. Users engaging with Dogami can collect 3D dog-themed NFTs, nurturing and interacting with them in augmented reality (AR). Moreover, they have the opportunity to earn crypto rewards by taking care of their virtual pets, akin to a blockchain version of the classic Tamagotchi experience.

Another key event was the Hangzhou upgrade, which was accepted by the Tezos community and activated at the end of cycle 427, on block 1,916,929, at approximately 16:20:22 UTC on December 3rd, 2021. Tezos, an original Proof of Stake blockchain with on-chain governance, had received its latest upgrade proposal named after Hangzhou, a global technology and innovation hub in China's Zhejiang province. This development marked a new era for Tezos, showcasing its efficiency in running and upgrading on a decentralized network amidst competitors grappling with their own upgrades and smart contract functionalities.

The Hangzhou upgrade proposal served as a precursor to the anticipated 2022 consensus upgrade, Tenderbake, introducing various technical tools and patches. Tezos' innovation at the protocol level had propelled the growth of its decentralized application ecosystem, enhancing transaction time and gas consumption efficiencies through upgrades. These improvements made Tezos a practical choice for developers, fueling the growth of its community. Recent months had seen record DeFi and NFT metrics, with Tezos on track to achieve 6 million contract calls for September.

The upgrade proposal included major protocol improvements such as Views, Timelock, Cache, Global Table of Constants, and Context Flattening, enhancing the contract design flexibility, security, and efficiency of Tezos. The upgrade also extended the sunset period of liquidity baking to correspond with the next upgrade proposal, demonstrating Tezos' unparalleled frequency of upgrades driven by on-chain governance. This iterative approach had solidified Tezos as a preferred platform for application development in the crypto industry, setting a standard for how on-chain governance can drive rapid innovation.

Tezos in 2022

The year 2022 started off with some controversy regarding the liquid baking feature, which was introduced with the Hangzhou update. 

The controversy stemmed from concerns about the potential impact of liquidity baking on the Tezos ecosystem. Liquidity baking involves minting new Tezos tokens (2.5 XTZ per block) and placing them in a liquidity pool with another cryptocurrency, tzBTC. Some members of the community worried that this could lead to inflation or devaluation of Tezos tokens, as more tokens were being created.

Additionally, the concept of introducing a new mechanism, especially one related to liquidity provision and market-making, raised questions about its necessity and potential risks. Some community members were concerned about the complexity and potential vulnerabilities that could be introduced with this new feature.

Consequently, there were debates about whether this was the right approach to encourage liquidity and trading activity on Tezos. Some felt that other strategies could be more effective without the need for creating additional tokens through liquidity baking.


On September 29, Tezos expanded on the concept of Liquid baking and implemented it via Sirius DEX. In hindsight, this was a branding play that replaced the entire liquid baking concept with the mechanics of a DEX – adopting the term "Sirius" was a strategic move aimed at enhancing the marketability and perceived value of the LP tokens associated with liquidity baking. By doing so, these tokens are positioned more effectively as a financial asset, making them more attractive to potential buyers or investors.

This move also allowed for a more streamlined process of selling these LP tokens, and as a result, encouraged wider participation in liquidity baking. LP token holders began to receive benefits from liquidity baking subsidies automatically, creating an additional incentive for people to engage with liquidity provisions on the Tezos network.

Tezos in 2023

In 2023, Tezos started to adopt scaling solutions in order to keep up with the evolving crypto ecosystem. Scaling will be introduced with the “Mumbai” upgrade, due at the start of next year.

Mumbai will introduce a lot of great features like the halving of block times from 30 seconds to 15 seconds, but the most anticipated feature is the introduction of Smart Contract Optimistic Rollups (SCORUs) to the Tezos mainnet.


Tezos sets itself apart in the implementation of rollups, making them "enshrined" in the Tezos protocol (layer 1) instead of being deployed as smart contracts, as seen in chains like Ethereum.

Enshrined rollups on Tezos yield several benefits:

  1. No need for "admin keys" or multi-signatures that provide control to a single entity.

  2. Improved computation and gas efficiency for Layer 1.

  3. Enablement of complex features that are typically challenging to implement in smart contract-based rollups.

Tezos introduces Smart Optimistic Rollups (SORUs), a form of optimistic rollups allowing for advanced smart contracts, virtual machines (VMs), and diverse features compared to the more limited ZK rollups. While ZK rollups currently handle basic transactions and demand higher hardware capabilities, Tezos' SORUs pave the way for increased versatility.

In Tezos, anyone can initiate or deploy a rollup node with a minimum requirement of 10k tez, used as a security deposit to deter malicious activities. The rollup is assigned its unique address on the mainnet (starting with sr1). Various rollup node modes exist, but the "operator" and "accuser" modes are crucial.

The operator rollup node manages transaction processing, regularly posting commitments to Layer 1, and engaging in possible refutation games, ensuring the rollup's progression. Conversely, the accuser rollup node verifies the operator's commitments and engages in a refutation game only if a conflict arises.

The Tezos protocol incorporates a proof-generating Virtual Machine (PVM) for decision-making during refutation games. In case of incorrect data, the erring rollup node faces a security deposit deduction, while the honest node receives a portion of the forfeited deposit as a reward. Honest nodes are assured victory in these refutation games.

It's important to note that due to the optimistic rollup nature and the outlined process, Tezos rollup state finalization on Layer 1 takes two weeks, allowing ample time for "accuser nodes" to validate rollup node commitments.

Tezos is in a constant growth cycle, and network participants like us can earn more $XTZ without too much hassle or technical knowledge, right from the comfort of our homes. 

Learn how to do that in our Tezos Mining & Staking guide, which includes the exact steps and best methods of earning more crypto like $XTZ in 2024 and beyond.

Ultimate Web3 Automation

A lil' more goodness

Mining and Staking NEAR (NEAR)

Layer 1 Chains

·

68 min

Mining and Staking Arweave (AR)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $AR

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $DOGE

Layer 1 Chains

·

68 min

Mining and Staking Evmos (EVMOS)

Layer 1 Chains

·

68 min

Summary, History and Status of Harmony (ONE) — 2024 Edition

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $ONE

Layer 1 Chains

·

68 min

Investing in Astar (ASTR)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $HBAR

Layer 1 Chains

·

68 min

Investing in Kava (KAVA)

Layer 1 Chains

·

68 min

Mining and Staking Waves (WAVES)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $KAVA

Layer 1 Chains

·

68 min

Investing in Evmos (EVMOS)

Layer 1 Chains

·

68 min

Investing in Internet Computer (ICP)

Layer 1 Chains

·

68 min

Summary, History and Status of BNB Chain (BNB) — 2024 Edition

Layer 1 Chains

·

68 min

Summary, History and Status of Polygon (MATIC) — 2024 Edition

Layer 1 Chains

·

68 min

Investing in Dogecoin (DOGE)

Layer 1 Chains

·

68 min

Mining and Staking Cardano (ADA)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $LTC

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $MATIC

Layer 1 Chains

·

68 min

Investing in Ethereum (ETH)

Layer 1 Chains

·

68 min

Mining and Staking BNB Chain (BNB)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $BTC

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $ATOM

Layer 1 Chains

·

68 min

Summary, History and Status of Flow (FLOW) — 2024 Edition

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $ASTR

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $ICP

Layer 1 Chains

·

68 min

Mining and Staking Internet Computer (ICP)

Layer 1 Chains

·

68 min

Investing in Arweave (AR)

Layer 1 Chains

·

68 min

Mining and Staking Flow (FLOW)

Layer 1 Chains

·

68 min

Summary, History and Status of Hedera (HBAR) — 2024 Edition

Layer 1 Chains

·

68 min

Investing in Polkadot (DOT)

Layer 1 Chains

·

68 min

Mining and Staking Bitcoin (BTC)

Layer 1 Chains

·

68 min

Mining and Staking Polkadot (DOT)

Layer 1 Chains

·

68 min

Summary, History and Status of TRON (TRX) — 2024 Edition

Layer 1 Chains

·

68 min

Summary, History and Status of Celo (CELO)

Layer 1 Chains

·

68 min

Summary, History and Status of Solana (SOL) — 2024 Edition

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $SOL

Layer 1 Chains

·

68 min

Investing in Helium (HNT)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $XTZ

Layer 1 Chains

·

68 min

Summary, History and Status of Stacks (STX) — 2024 Edition

Layer 1 Chains

·

68 min

Summary, History and Status of Litecoin (LTC)

Layer 1 Chains

·

68 min

Investing in Celo (CEL)

Layer 1 Chains

·

68 min

Investing in Litecoin (LTC)

Layer 1 Chains

·

68 min

Mining and Staking Litecoin (LTC)

Layer 1 Chains

·

68 min

Investing in Filecoin (FIL)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $EVMOS

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $AURORA

Layer 1 Chains

·

68 min

Investing in Bitcoin (BTC)

Layer 1 Chains

·

68 min

Investing in Aurora (AURORA)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $MINA

Layer 1 Chains

·

68 min

Mining and Staking Secret (SCRT)

Layer 1 Chains

·

68 min

Investing in Avalanche (AVAX)

Layer 1 Chains

·

68 min

Summary, History and Status of Avalanche (AVAX) — 2024 Edition

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $GLMR

Layer 1 Chains

·

68 min

Mining and Staking Kadena (KDA)

Layer 1 Chains

·

68 min

Summary, History and Status of Astar (ASTR)

Layer 1 Chains

·

68 min

Summary, History and Status of Polkadot (DOT) — 2024 Edition

Layer 1 Chains

·

68 min

Investing in Moonbeam (GLMR)

Layer 1 Chains

·

68 min

Mining and Staking Algorand (ALGO) in 2024

Layer 1 Chains

·

68 min

Investing in BNB Chain (BNB)

Layer 1 Chains

·

68 min

Summary, History and Status of Secret (SCRT) — 2024 Edition

Layer 1 Chains

·

68 min

Investing in Waves (WAVES)

Layer 1 Chains

·

68 min

Summary, History and Status of NEAR (NEAR) — 2024 Edition

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $NEAR

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $FLOW

Layer 1 Chains

·

68 min

Investing in Hedera (HBAR)

Layer 1 Chains

·

68 min

Mining and Staking Dogecoin (DOGE)

Layer 1 Chains

·

68 min

Investing in Harmony (ONE)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $ALGO

Layer 1 Chains

·

68 min

Summary, History and Status of Filecoin (FIL)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $ETH

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $CEL

Layer 1 Chains

·

68 min

Summary, History and Status of Dogecoin (DOGE) — 2024 Edition

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $HNT

Layer 1 Chains

·

68 min

Mining and Staking Aurora (AURORA)

Layer 1 Chains

·

68 min

Mining and Staking Moonbeam (GLMR)

Layer 1 Chains

·

68 min

Mining and Staking Ethereum (ETH)

Layer 1 Chains

·

68 min

Mining and Staking Kava (KAVA)

Layer 1 Chains

·

68 min

Investing in Stacks (STX)

Layer 1 Chains

·

68 min

Summary, History and Status of Arweave (AR) — 2024 Edition

Layer 1 Chains

·

68 min

Summary, History and Status of Moonbeam (GLMR) — 2024 Edition

Layer 1 Chains

·

68 min

Mining and Staking Solana (SOL)

Layer 1 Chains

·

68 min

Investing in Polygon (MATIC)

Layer 1 Chains

·

68 min

Mining and Staking Cosmos (ATOM)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $TRX

Layer 1 Chains

·

68 min

Investing in Cosmos (ATOM)

Layer 1 Chains

·

68 min

Summary, History and Status of Bitcoin (BTC) — 2024 Edition

Layer 1 Chains

·

68 min

Mining and Staking Stacks (STX)

Layer 1 Chains

·

68 min

Summary, History and Status of Mina (MINA) — 2024 Edition

Layer 1 Chains

·

68 min

Investing in Secret (SCRT)

Layer 1 Chains

·

68 min

Investing in Solana (SOL)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $STX

Layer 1 Chains

·

68 min

Summary, History and Status of Cardano (ADA) — 2024 Edition

Layer 1 Chains

·

68 min

Summary, History and Status of Ethereum (ETH) — 2024 Edition

Layer 1 Chains

·

68 min

Investing in Flow (FLOW)

Layer 1 Chains

·

68 min

Mining and Staking Harmony (ONE)

Layer 1 Chains

·

68 min

Investing in Tezos (XTZ)

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $AVAX

Layer 1 Chains

·

68 min

How to Store, Transfer and Bridge $DOT

Layer 1 Chains

·

68 min

Summary, History and Status of Aurora (AURORA)

Layer 1 Chains

·

68 min