OKX Plans to Enhance X Layer, Discontinue OKTChain, and Revise $OKB Gas Structure
In a significant move, OKX has announced a series of upgrades to its X Layer network and the OKB token, aiming to position the platform as a leading contender in the Layer-2 landscape. The upgrades, collectively known as the "PP upgrade," are designed to enhance the network's performance, scalability, and security, making it more attractive for developers and users in the decentralized finance (DeFi), payments, and real-world asset (RWA) sectors.
Enhanced X Layer Network
The PP upgrade significantly improves X Layer's performance by increasing its transaction throughput to 5,000 transactions per second (TPS), drastically reducing gas fees to a near-zero level, and improving security and compatibility with Ethereum. This positions X Layer as a leading public blockchain optimized for DeFi, payments, and RWA applications.
OKB Token Transformation
Regarding the OKB token, OKX executed a one-time burn of approximately 65.25 million tokens, cutting the total supply by 52% and fixing the supply permanently at 21 million. The OKB smart contract was also upgraded to remove minting and burning functions, making the token deflationary and scarce by design.
This scarcity, combined with the improved utility derived from the upgraded X Layer and ecosystem integrations (OKX Wallet, Exchange, and OKX Pay), aims to create a new valuation model where OKB's value is driven by both scarcity and real-world utility across DeFi, payments, and RWA sectors.
OKTChain Retirement
OKX is also phasing out its Cosmos-based layer-1 blockchain, OKTChain. Trading of the OKT token will stop on August 13, 2025, with holders’ OKT being converted periodically into OKB at a fixed rate until the process completes by January 2026. This consolidation eliminates ecosystem fragmentation and focuses OKX’s infrastructure around the X Layer and OKB, consolidating liquidity and user activity into a single, high-performance network.
Ecosystem Fund and Liquidity Incentives
To bolster the ecosystem, OKX is introducing an ecosystem fund and liquidity incentives to attract developers and projects to build on X Layer. This strategic move supports long-term adoption in DeFi, payments, and RWA use cases, firmly positioning OKB as a backbone token within a multi-chain ecosystem, beyond its traditional function as a centralized exchange (CEX) token.
The strategic shifts aim to strengthen X Layer's position, improve long-term token value stability, and boost investor confidence. Following the announcement, OKB briefly surged to a historic high of $99.27 before retracing to around $84. Analysts suggest the sharp rise reflects strong investor enthusiasm for the fixed supply model and expanded utility of OKB in the upgraded X Layer ecosystem.
In summary, OKX's upgrade and strategic moves:
- Dramatically improve X Layer's scalability, cost, and security for DeFi, payments, and RWAs.
- Transform OKB into a deflationary, scarce token with ecosystem-wide utility.
- Phase out OKTChain to consolidate network focus and liquidity.
- Support developer and user growth through incentives and ecosystem integration.
This builds a more sustainable and valuable token-economic model and expands the real-world application scope of OKX's blockchain infrastructure.
[1] OKX Blog: Introducing the PP Upgrade [2] OKX Blog: OKTChain Retirement Announcement [3] CoinDesk: OKX Burns $65 Million Worth of OKB Tokens [4] Decrypt: OKX's OKB Token Gets a Makeover with a Fixed Supply [5] The Block: OKX to Burn $65 Million Worth of OKB Tokens
- The PP upgrade on OKX's X Layer network aims to position it as a leading contender in the decentralized finance, payments, and real-world asset sectors, with enhanced performance, scalability, and security, making it more attractive for developers and users.
- The OKB token has undergone a one-time burn, reducing its total supply by 52%, and its smart contract has been upgraded to make it deflationary and scarce by design, aiming to create a new valuation model driven by scarcity and real-world utility.
- OKX is phasing out its OKTChain blockchain and the OKT token, consolidating its infrastructure around the X Layer and OKB, as a strategic move to eliminate ecosystem fragmentation and focus on a single, high-performance network.
- To bolster the ecosystem, OKX is introducing an ecosystem fund and liquidity incentives to attract developers and projects to build on X Layer, with the goal of supporting long-term adoption in DeFi, payments, and real-world asset use cases.
- Following the announcement of these upgrades and strategic moves, the OKB token briefly surged to a historic high, suggesting strong investor enthusiasm for the fixed supply model and expanded utility in the upgraded X Layer ecosystem, positioning it beyond its traditional function as a centralized exchange token.
