What is Axelar Network? Information about Token AXL?

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2 Mar 2024

What is Axelar Network? Information about Token AXL?

What is Axelar Network? What makes this project stand out? Explore its operational mechanism, roadmap, and information about the Axelar token.
Table of Contents

What is Axelar Network?

Axelar Network is a general cross-chain messaging protocol, utilizing a Proof-of-Stake (PoS) consensus mechanism and built on the Cosmos SDK toolkit. The project provides infrastructure to support blockchain interoperability, allowing different chains to interact with each other.
At the same time, developers can build decentralized applications (dApps) with cross-chain interaction capabilities using Axelar Network technology. In other words, Axelar Network acts as a third-party to verify the trustworthiness of cross-chain transactions, simplifying the process of sharing and transmitting messages for both users and dApps.

Operating Model of Axelar Network

The Axelar network consists of three main components across two layers with different functions.
Decentralized Network

Firstly, there is a network supported by a set of validators responsible for maintaining the network and executing transactions. Validators operate the cross-chain gateway protocol.
They are responsible for performing read and write operations on smart contract gateways deployed on connected peripheral chains by participating in voting and confirming events on those chains.

Gateway Smart Contracts

The second component is gateways – smart contracts that act as bridges between the Axelar Network and Layer 1 blockchains.
Validators monitor gateways to receive incoming transactions, then evaluate the validity of those transactions. Once consensus is reached, they record data on the destination chain’s gateway to execute cross-chain transactions. Validators and gateways together form the core infrastructure.

Development Tools

Positioned above validators and gateways are APIs and SDKs (libraries and tools that allow developers easy access to the Axelar network). This is the application development layer that developers will use to integrate any two chains in a single hop, adding global compatibility to their blockchains and applications.

With Axelar, they can lock, unlock, and transfer assets between any two addresses on any two chain platforms, execute cross-chain application triggers, and process generalized cross-chain requests.

Highlights of Axelar Network

Some highlights of Axelar Network include:
Decentralization

Axelar Network deploys cross-chain on any chain, including networks without Smart Contracts. All data updates, protocols, etc., are performed in a decentralized manner.

Cross-chain Communication

The protocol has various tools and features like APIs, GMP, etc., making interaction between chains more convenient.

Future Applications

In addition to developed applications, Axelar Network plans to expand into other applications such as DeFi lending and borrowing, cross-chain synthetic asset, cross-chain governance, etc.

What is Axelar Network Token?

Axelar Network has a native token called AXL. In addition to the AXL token, Axelar Network also issues the wAXL token, which can operate on all chains compatible with EVM.
However, wAXL cannot be used to provide liquidity.

AXL Token Key Metrics

Token name: Axelar Network
Ticker: AXL
Blockchain: Ethereum, BNB, Base…
Token contract: 0x467719ad09025fcc6cf6f8311755809d45a5e5f3
Token Standard: ERC-20
Token Type: Utility
Token Supply: 1,086,031,711 AXL
Circulating Supply: Updating

Because the AXL token can be applied across multiple chains, users can refer to the supported blockchains and contracts here.

AXL Token Use Cases

The AXL token is used for:

Participating in DeFi interactions.
Voting in cross-chain DAO governance.
Fees and rewards for users.
Staking in the project.
Providing liquidity.

AXL Token Allocation

The AXL token is allocated as follows:

Community Program: 36%
Backers: 29.5%
Team: 17%
Company Operation: 12.5%
Community Sale: 5%.

NFP Token Release Schedule

Below is the schedule for releasing NFP tokens:

Roadmap

Axelar Network announces updates in 2023 as follows:

Integrating more new chains: As of now, Axelar has connected to 30 Web3 ecosystems and the project is still expanding.
Airdrop, bounties, and grant programs.
Integrating chains incompatible with EVM.
Supporting more programming languages: Move, Rust, etc.

Development Team

The founder of Axelar Network is Sergey Gorbunov. He is an expert in distributed systems and cryptography, with a background working at top institutions such as MIT, Google, and Consensys. He is also one of the original founding members of Algorand.
Sergey Gorbunov is a passionate advocate for blockchain technology. He believes that the future of Web3 is a world where users can interact with applications and assets on different blockchains without encountering obstacles. Axelar Network is his effort to turn this vision into reality.

Investors and Partners

Axelar has raised $28.8 million in two funding rounds. Additionally, Axelar has received funding from 16 investors such as North Island Ventures, Polychain, Dragonfly Capital, Coinbase Ventures, Binance,…
On February 15, 2022, Axelar Network continued its Series B funding round with $35 million and a valuation of $1 billion. Participating funds in this round include Polychain, Dragonfly,…
Most recently, Axelar Network announced a partnership with Microsoft to develop and integrate Web3 technology.

Similar Projects

Some projects similar to Axelar Network include:

LayerZero: This project provides infrastructure to support decentralized applications on blockchains that can interact across chains (Omnichain).
Polkadot: A blockchain platform that allows blockchains to connect with each other to share data and form a decentralized network.

Project Information

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.