OKX, a prominent cryptocurrency exchange, recently unveiled a significant upgrade to its X Layer network, along with a revamp of its OKB token’s economic model. These changes are aimed at enhancing the infrastructure and supply mechanics of the platform.
The upgrade, announced on August 13, included a one-time burn of 65,256,712.097 OKB tokens, which effectively capped the total supply at 21 million. Additionally, the “PP upgrade” was completed, integrating the latest Polygon Chain Development Kit to improve performance.
With these updates, the throughput of the network has been increased to 5,000 transactions per second, while gas costs have been reduced to near zero. These changes align the network more closely with Ethereum’s mainnet, enabling support for high-concurrency scenarios and improving the developer experience.
OKX is focusing on key use cases such as DeFi, global payments, and real-world asset issuance, supported by an ecosystem fund, liquidity incentives, and new infrastructure for cross-chain bridges, oracles, and compliance services.
The economic model changes center around OKB serving as the sole gas and native token on X Layer. As part of the update, OKB withdrawals to Ethereum Layer 1 through the OKX exchange have been discontinued, encouraging holders to migrate to X Layer using a one-click swap feature.
Furthermore, a smart contract will now automatically burn all future transfers of OKB tokens to a designated blackhole address. The OKB smart contract will also be upgraded to remove minting and burning functions.
The update also involves the gradual decommissioning of OKTChain. Trading in OKT was halted on August 13, and OKT will be automatically converted to OKB based on an average closing price from July 13 to August 12. OKTChain will remain operational until January 1, 2026, allowing on-chain holders to deposit OKT for conversion.
The market response to these changes was significant, with OKB’s price surging by over 140% following the announcement. This spike reflects market enthusiasm for the reduced circulating supply of OKB and the performance enhancements of X Layer.
The integration of X Layer across OKX’s core products, including OKX Wallet, the exchange, and OKX Pay, is expected to streamline user interactions and consolidate activity within a single Layer 2 environment.
While these updates are extensive, the rollout is being executed in stages, with specific dates set for key milestones. The final shutdown of OKTChain in 2026 will mark the completion of the consolidation process, establishing X Layer as the sole public network within OKX’s blockchain architecture.
In conclusion, the upgrades to OKX’s X Layer network and OKB token’s economic model represent a significant step towards enhancing the platform’s performance and user experience. These changes are poised to drive further growth and adoption within the cryptocurrency ecosystem.