An interesting question is before us: How can a Layer2 scaling solution's token both drive network security and strengthen itself through network growth?

**The Dual Identity of Token Value**

XPL is not only a pass but also an anchor for network security. The cleverness of this design lies in — validators must stake a large amount of XPL to package sub-chain transactions, directly linking token value to network processing capacity. In other words, as the ecosystem's transactions increase, staking demand naturally rises, and circulation decreases accordingly, creating a natural deflationary pressure. The higher the network activity, the greater the staking demand for XPL, and the stronger the token’s support.

**Rational Constraints in Incentive Mechanisms**

On the validator side, rewards come from XPL incentives and transaction fees, but malicious behavior results in slashing penalties. In the long run, honest mining’s expected returns will inevitably surpass one-time fraudulent gains, naturally driving rational behavior through game theory. On the user side, holding or paying XPL to obtain lower fees and higher security makes XPL a vehicle for security premiums.

This design ensures that token value is derived not only from transaction usage but also as a product of technology, economics, and incentives combined.