Axelar Network has completed its upgrade to version v1.2.1, known as 'Cobalt'. This upgrade introduces a new AXL tokenomics model, incorporating fee burning and improving token utility.
Cobalt Upgrade and Its Features
The Cobalt upgrade was approved by tokenholders through on-chain voting. It introduces a new tokenomics model where network fees paid in AXL are sent to a burn address. This reinforces the AXL supply to incentivize interoperability at scale. The upgrade concludes the development started with the Axelar Virtual Machine, the only open-source programmable interoperability layer.
Increasing Demand for Blockchain Interoperability
Sergey Gorbunov, CEO of Interop Labs and co-founder of Axelar, outlined factors driving demand for interoperability in a post on X. Key drivers include financial institutions issuing stablecoins; mass adoption driven by stablecoins; AI applications requiring connectivity to blockchains for verification and computing. New blockchains can easily connect using the Interchain Amplifier, part of Axelar's Mobius Development Stack.
Advantages of Axelar Protocol and Unique AXL Token
Axelar Network connects blockchains with top-level security and robustness. Unlike other protocols, Axelar has no closed-source or custodial components; it is built on a public blockchain with dynamic Validators incentivized by the AXL token. The Cobalt upgrade strengthens the AXL token incentives, making Axelar a unique tool in secure interoperability.
The Cobalt upgrade strengthens Axelar's role in blockchain interoperability, providing new opportunities for integration and network expansion. It reinforces the position of the AXL token as a key element in supporting scalable and secure blockchain infrastructure.
