# Electra Protocol > Electra Protocol is a layer-1 blockchain enabling instant, scalable, and secure transactions, designed for decentralized finance and applications using proof-of... - Canonical URL: https://iq.wiki/wiki/electra-protocol - Categories: Projects & Protocols - Tags: Layer 1, DEX, DeFi, Infrastructure - Created: 2024-10-08T23:12:00.271Z - Last updated: 2024-10-08T23:12:00.271Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **Electra Protocol** is a [Layer 1](https://iq.wiki/wiki/layer-1) [blockchain](https://iq.wiki/wiki/blockchain) designed for instant, scalable, decentralized, and secure transactions supported by a network of [nodes](https://iq.wiki/wiki/node). It enables users to create payment solutions and issue public tokens through smart contracts, making it suitable for [decentralized finance](https://iq.wiki/wiki/defi), digital identity, [NFTs](https://iq.wiki/wiki/non-fungible-token-nft), gaming, and supply chain tracking. [\[1\]](#cite-id-ssxx15ad3q) # Overview Electra Protocol is a [Layer 1](https://iq.wiki/wiki/layer-1) [blockchain](https://iq.wiki/wiki/blockchain) launched in 2021 by global volunteers as a neutral public [blockchain](https://iq.wiki/wiki/blockchain) infrastructure. It was developed without external funding or an [Initial Coin Offering](https://iq.wiki/wiki/initial-coin-offering) to avoid regulatory classification as a security. Crowdsourced like [Bitcoin](https://iq.wiki/wiki/bitcoin), it operates with a[ proof-of-stake](https://iq.wiki/wiki/proof-of-stake) consensus, making it faster and more energy-efficient. Its native coin, XEP, runs on the Electra Protocol core chain. [\[2\]](#cite-id-wpg1wvmhrho) Electra Protocol offers near-instant decentralized transactions with minimal [fees](https://iq.wiki/wiki/transaction-fee) and 3% [staking](https://iq.wiki/wiki/staking) rewards. The [blockchain's](https://iq.wiki/wiki/blockchain) security and decentralization ensure the integrity and availability of data. [Smart contracts](https://iq.wiki/wiki/smart-contract) or other actions that could disrupt the network cannot compromise its ecosystem. Electra can handle over 1,500 transactions per second due to features like parallel transaction processing, the [UTXO](https://iq.wiki/wiki/unspent-transaction-output-utxo) model, advanced memory pool management, and hundreds of full [nodes](https://iq.wiki/wiki/node). Transactions are processed immediately, with blocks written every 80 seconds. If the volume increases, the system adjusts transaction costs as needed. Transactions between XEP Desktop Wallets typically take less than a second. [\[2\]](#cite-id-wpg1wvmhrho) ## Electra Foundation The Electra Foundation, established in early 2022, is a nonprofit organization that supports the open-source, permissionless, and decentralized Electra Protocol [blockchain](https://iq.wiki/wiki/blockchain). Its responsibilities include conducting due diligence, facilitating the listing of XEP on exchanges, forming agreements with partners, funding community initiatives, supporting [blockchain](https://iq.wiki/wiki/blockchain) development, and promoting public education on [blockchain](https://iq.wiki/wiki/blockchain) adoption. The foundation also manages the publication of websites and services related to Electra Protocol. [\[3\]](#cite-id-0omhpq2os4br) # Features ## OmniXEP OmniXEP is a [Layer 2](https://iq.wiki/wiki/layer-2) solution built on the Electra Protocol that enables users to create and manage tokens and [NFTs](https://iq.wiki/wiki/non-fungible-token-nft) without requiring any development expertise. The OmniXEP-Pro wallet allows for quick and easy [minting](https://iq.wiki/wiki/minting), transferring, and trading of digital assets, facilitating real-world applications such as representing ownership of physical items, creating loyalty programs, and issuing event tickets. [\[4\]](#cite-id-guexcsvf86o)[\[5\]](#cite-id-tdqgs02ca6e) OmniXEP streamlines asset digitization and relies solely on the XEP [blockchain](https://iq.wiki/wiki/blockchain) for its internal computing system. This means that the platform operates independently without involvement from external entities, enhancing its security. A transaction within OmniXEP is embedded in an XEP transaction, submitted to the XEP [blockchain](https://iq.wiki/wiki/blockchain), and shared across the network. The transaction is deemed valid only when the associated conditions are met and once included in a new XEP block. The data is computed, and verification is performed against the transaction history. [\[4\]](#cite-id-guexcsvf86o)[\[5\]](#cite-id-tdqgs02ca6e) Key aspects include isolating the OmniXEP layer from the broader network and ensuring it computes only the data embedded in valid XEP transactions. This autonomous computing system operates independently from other [nodes](https://iq.wiki/wiki/node) and relies on the robust security of the XEP [blockchain](https://iq.wiki/wiki/blockchain) to safeguard its operations. [\[4\]](#cite-id-guexcsvf86o)[\[5\]](#cite-id-tdqgs02ca6e) ## ElectraDEX ElectraDEX is a [decentralized exchange (DEX)](https://iq.wiki/wiki/decentralized-exchange) built on the Electra Protocol [blockchain](https://iq.wiki/wiki/blockchain). It enables direct [peer-to-peer trading](https://iq.wiki/wiki/peer-to-peer-trading-p2p) without intermediaries or [liquidity pools](https://iq.wiki/wiki/liquidity-pool). All transactions are executed on-chain, ensuring security and transparency. Unlike traditional [DEXs](https://iq.wiki/wiki/decentralized-exchange) that rely on [liquidity pools](https://iq.wiki/wiki/liquidity-pool) and may introduce risks like [impermanent loss](https://iq.wiki/wiki/impermanent-loss), ElectraDEX eliminates these complexities by allowing users to trade directly with one another. [\[6\]](#cite-id-ia7p0c4mswp) Powered by OmniXEP, a Layer-2 solution that enhances data transactions and scalability with low fees, ElectraDEX offers seamless and efficient trading. It integrates with the OmniXEP Pro Wallet, a desktop wallet designed for power users, allowing full control over funds and private keys. The system prioritizes security by being fully decentralized, with no central points of failure, and scales to handle growing user demand without sacrificing performance. Every transaction is recorded on the Electra Protocol blockchain, providing a secure and efficient trading experience. [\[6\]](#cite-id-ia7p0c4mswp) ## Wallets Electra Protocol has four [wallets](https://iq.wiki/wiki/cryptocurrency-wallet) for users to store their XEP tokens: [\[7\]](#cite-id-p2ku2vuph2a) * **XEP Pro Wallet**: The XEP Pro Wallet is a desktop [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) specifically for XEP coins and does not support Wrapped XEP tokens. Users can purchase XEP coins from supported exchanges and transfer them to their [wallets](https://iq.wiki/wiki/cryptocurrency-wallet). By keeping the [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) unlocked, users contribute to maintaining network functionality and can earn up to 3% annual [staking](https://iq.wiki/wiki/staking) rewards. * **XEP Classic Wallet**: The XEP Qt Wallet is a classic desktop [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) designed for XEP coins, not for Wrapped XEP tokens. Users can buy XEP coins on supported exchanges and transfer them to their [wallets](https://iq.wiki/wiki/cryptocurrency-wallet). Keeping the [wallet](https://iq.wiki/wiki/cryptocurrency-wallet) unlocked helps maintain network stability, and users can earn up to 3% annual [staking](https://iq.wiki/wiki/staking) rewards. * **XEP Mobile Wallet**: The XEP Mobile Wallet is designed solely for payments and does not store a copy of the [blockchain](https://iq.wiki/wiki/blockchain) like the XEP Desktop Wallet. As a result, users cannot [stake](https://iq.wiki/wiki/staking) their XEP coins in their mobile [wallet](https://iq.wiki/wiki/cryptocurrency-wallet). * **XEP Hardware Wallet**: XEP Hardware Wallets are typically not connected to the internet and cannot participate in the [staking](https://iq.wiki/wiki/staking) process. ## Lightning Network Integrating the [Lightning Network](https://iq.wiki/wiki/lightning-network) into Electra Protocol aims to boost its scalability and make XEP more attractive for wider adoption, particularly by merchants. Developed by Lightning Labs, the [Lightning Network](https://iq.wiki/wiki/lightning-network) enhances the [blockchain’s](https://iq.wiki/wiki/blockchain) ability to process more transactions per second (TPS). Electra Protocol’s current TPS is over 1,500, with the potential for further increases through future [Lightning Network](https://iq.wiki/wiki/lightning-network) improvements. By combining Segregated Witness (SegWit) with the [Lightning Network](https://iq.wiki/wiki/lightning-network), Electra Protocol can scale as its user base grows without requiring a [hard fork](https://iq.wiki/wiki/hard-fork). SegWit has introduced technical enhancements that have significantly improved the blockchain’s transaction capacity. [\[8\]](#cite-id-pjlngqfrzp) ## Evolvable NFTs Electra Protocol introduces Evolvable [NFTs](https://iq.wiki/wiki/non-fungible-token-nft) (ENFTs), which differ from traditional static [NFTs](https://iq.wiki/wiki/non-fungible-token-nft) by allowing creator and owner updates. This flexibility enables real-world applications, including property ownership updates in real estate, tracking goods in supply chains with real-time data, adding certifications to educational records, and managing insurance policies with coverage changes. ENFTs ensure that digital representations of assets remain current and accurate, providing a reliable source of information for all stakeholders. [\[5\]](#cite-id-tdqgs02ca6e) ## RWAs Electra Protocol offers several advantages for managing [real-world assets (RWA)](https://iq.wiki/wiki/real-world-assets-rwas), including fast transaction times and low fees, ensuring cost-effective and efficient operations. Its decentralized [blockchain](https://iq.wiki/wiki/blockchain) provides enhanced security and transparency, minimizing fraud risks. The protocol's flexibility through OmniXEP allows for customizable tokens and [NFTs](https://iq.wiki/wiki/non-fungible-token-nft) tailored to specific use cases. Electra Protocol’s energy-efficient [proof-of-stake](https://iq.wiki/wiki/proof-of-stake) mechanism makes it an eco-friendly option for [RWA](https://iq.wiki/wiki/real-world-assets-rwas) management. [\[5\]](#cite-id-tdqgs02ca6e) # XEP XEP is the native coin of the Electra Protocol [blockchain](https://iq.wiki/wiki/blockchain), used for transactions and available on select exchanges. The currency symbol XEP stands for X=ISO code for international, E=Electra, and P=Protocol. It operates with a [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake) [consensus](https://iq.wiki/wiki/consensus-mechanism), offering [validators](https://iq.wiki/wiki/validator) a 3% [annual yield](https://iq.wiki/wiki/annual-percentage-yield-apy) for securing the network and processing transactions. Electra Protocol prioritizes long-term sustainability over short-term gains, maintaining a balanced approach to [staking](https://iq.wiki/wiki/staking) rewards and controlling inflation through mechanisms like [token burning](https://iq.wiki/wiki/token-burn). This ensures sufficient incentives for validators while keeping the network decentralized and secure. [\[9\]](#cite-id-h179qbys6qq) Electra Protocol uses several [burning](https://iq.wiki/wiki/token-burn) mechanisms to manage the introduction of new XEP through [staking](https://iq.wiki/wiki/staking). These mechanisms aim to balance coin creation and destruction, potentially leading to deflation if transaction volumes increase: [\[9\]](#cite-id-h179qbys6qq) * **Transaction Fees**: Each transaction burns a small amount of XEP (\~0.0002 XEP), gradually reducing the circulating supply. * **Layer 2 Fees**: On the OmniXEP layer and future layers, XEP is used as the fee currency, with all fees collected burned to control the supply and support the target of 30 billion XEP. * **Premine Burns**: Periodic burns from the premined XEP, initially allocated for community and project development, further reduce the circulating supply. ## Premine Premining involves creating several [blockchain](https://iq.wiki/wiki/blockchain) tokens before a [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) is publicly launched. The Electra Protocol [blockchain](https://iq.wiki/wiki/blockchain) officially launched in January 2021 with a total supply of 30 billion XEP, its native currency. Unlike many [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency), Electra Protocol did not raise funds through an initial coin offering, exchange offering, or venture capital. However, a small portion of the total supply was allocated for technical operations. [\[10\]](#cite-id-zcllgixnod) Specifically, 10% of the total supply, or 3 billion XEP, was reserved as community coins for the Electra Foundation to support and manage the blockchain ecosystem. These premine coins are fully in circulation with no lockups, although there is a soft lock of 50% on the premined amount. In January 2022, the premine supply decreased to 2 billion XEP due to [burn](https://iq.wiki/wiki/token-burn) events and collateralization measures. [\[10\]](#cite-id-zcllgixnod) ## Tokenomics The "Target Supply" of XEP is projected to be 30 billion coins, serving as a guideline for managing [staking](https://iq.wiki/wiki/staking) rewards and supply dynamics rather than a fixed cap. The target of 30 billion offers a framework for understanding inflation and deflation within the Electra Protocol, with the actual circulating supply influenced by factors such as [staking](https://iq.wiki/wiki/staking) rewards, coin burns, and network activity. XEP has the following allocation: [\[9\]](#cite-id-h179qbys6qq)[\[10\]](#cite-id-zcllgixnod) * **Staking Reserve**: 47.3% * **Airdrop**: 46% * **Premine**: 6.7% ## WXEP WXEP is the symbol for wrapped XEP tokens running on the [Binance Smart Chain](https://iq.wiki/wiki/binance-smart-chain). These tokens are designed to attract investors unfamiliar with the Electra Protocol. Unlike XEP coins, WXEP tokens cannot be [staked](https://iq.wiki/wiki/staking) using the XEP Desktop Wallet, as they are not directly interchangeable. However, WXEP tokens can earn rewards on [PancakeSwap](https://iq.wiki/wiki/pancakeswap) by providing [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity), an option not available for regular XEP coins. The rewards for providing [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) on [PancakeSwap](https://iq.wiki/wiki/pancakeswap) are flexible, with potential returns reaching up to 25% annual yield, depending on the time invested. [\[1\]](#cite-id-ssxx15ad3q) # POESTHECAT POESTHECAT is a [meme](https://iq.wiki/wiki/memecoins) token driven by regular [token burns](https://iq.wiki/wiki/token-burn) and built on a [deflationary](https://iq.wiki/wiki/deflationary-token) model within the Electra Protocol ecosystem. The character behind the token, POES, is symbolized as a mischievous cat known for [burning](https://iq.wiki/wiki/token-burn) [crypto](https://iq.wiki/wiki/cryptocurrency) tokens, including POESTHECAT and XEP coins. Weekly [burns](https://iq.wiki/wiki/token-burn) reduce the total supply, increasing demand. POESTHECAT is traded on ElectraDEX, and every time the team sells a POESTHECAT token, the XEP received is permanently [burned](https://iq.wiki/wiki/token-burn), benefiting the Electra Protocol community. As a [deflationary token](https://iq.wiki/wiki/deflationary-token), its value increases as more tokens are [burned](https://iq.wiki/wiki/token-burn), creating a novel, community-driven concept that impacts supply and demand. [\[11\]](#cite-id-lnx91xz3s8h) ![poesthecat-intro-1536x1536.jpg](https://ipfs.everipedia.org/ipfs/QmbKZBe3maAWydiQZR2ug3JKw93FHnzVTd1R9s5gE7QSWH) # Partnerships * Evoblox * RedFox Labs * Starship * [Komodo](https://iq.wiki/wiki/komodo) * [Binance Charity](https://iq.wiki/wiki/binance-charity) * ETA * [CoinGecko](https://iq.wiki/wiki/coingecko) * [CoinMarketSwap](https://iq.wiki/wiki/coinmarketcap) * [PancakeSwap](https://iq.wiki/wiki/pancakeswap)