Plain English
Tezos is a 2018 proof-of-stake L1 known for on-chain governance — protocol upgrades are proposed, voted on, and adopted entirely on-chain by XTZ holders, with no hard forks. XTZ is the native token. Staking (“baking”) is built directly into the protocol.
How it actually works
Tezos uses Liquid Proof of Stake. Token holders can delegate to bakers (validators) without losing custody. Smart contracts run in Michelson (formally verifiable) or higher-level Ligo. Tezos hosts significant tokenized RWA activity, particularly through partnerships with Société Générale and others.
What it means for you
XTZ is a slow-burn institutional-leaning L1. For HNW positioning, it is most interesting as an RWA rail — particularly in Europe. Native staking yields ~5% with no lockup. Total mindshare has declined relative to Ethereum L2s, but the chain has held up across multiple cycles.
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Educational content only. Not investment, tax, or legal advice.