XTZ is a coin of the blockchain project Tezos, which created and is working on the development of a multipurpose platform based on the support of decentralized applications (DApps) and smart contracts.
XTZ tokens in the Tezos blockchain, are created by "baking." The Tezos blockchain is written in the OCaml programming language and uses the Liquid Proof-of-Stake consensus algorithm to validate blocks.
Tezos is based on crypto-economic incentives for users who participate in the development and life of the project.
Each user has the opportunity to set up a project node (software components for validation), then need to top up in XTZ tokens (a deposit of at least 8000 XTZ is required to participate in the Delegates program), and participate in Token Stacking earning rewards.
Delegates earn XTZ tokens by betting. The mechanism of the program is roughly as follows: a deposit is made and rewards are earned for signing and publishing blocks, after which Bakers (validators) validate the blocks.
If falsification or any fraud is detected, unscrupulous network members lose their XTZ deposits, this penalty mechanism encourages everyone in the project ecosystem to work honestly.
XTZ is traded on most major crypto exchanges and is a liquid cryptocurrency.