Axelar Network (AXL)

Tokenomics & Utility

AXL began with a genesis supply of one billion tokens. The original distribution was intended to support areas such as network security, ecosystem development, and community participation. New AXL can enter circulation as rewards for proof-of-stake validators and delegators, so the total supply can change over time. (axelar.network)

The token has three everyday roles in the network. Staking AXL helps validators secure Axelar; stakers can take part in governance votes on matters such as upgrades and network settings; and transactions on Axelar use AXL for network fees. Cross-chain users can often pay in a token on their starting chain while Axelar Gas Services handles the needed conversions. (axelar.network)

A 2025 upgrade called Cobalt changed how fees and new connections work. Under that upgrade, 98% of AXL network gas fees go to a burn address, while 2% go to a community proposals grant pool. New chains connecting through Interchain Amplifier fund AXL reward pools for the verifiers serving those connections, instead of adding an inflationary reward for every new chain. The burn removes fee tokens from circulation; staking rewards continue to add newly issued tokens. (axelar.network)

AXL also has forms on other chains. Native AXL lives on Axelar, while an ERC-20 representation is commonly called wAXL. The distinction matters for storage and staking: staking on Axelar uses the native token. (axelar.network)