XELIS Development Funding Fee Reduction is Here: From 10% to 5% at Block 3,250,000

Xelis is approaching an important, and fully immutable, milestone in its monetary and governance design. Around Sunday/Monday, when the blockchain reaches block height 3,250,000, the protocol-defined development funding fee will automatically decrease from 10% to 5% of each block reward. This marks the increasing of mining rewards by 5%.

This is not a promise. This is code, and code is law.

Why the Fee Exists

From day one, Xelis set out to solve one of the most difficult challenges in decentralized project sustainability: how to fund ongoing development without compromising decentralization or relying on wealthy individuals.

Instead of:

• Having a premine
• Running a fundraising round
• Taking VC money
• Relying on large holders to “donate”
• Placing governance power in the hands of a few richest wallets

Xelis uses a protocol-level, hard-coded development fee. This ensures the project can remain independent and self-sufficient.

The dev fund supports:

• Ongoing core development
• Bounties
• Developer grants
• Infrastructure & servers
• Marketing
• Exchange listings
• Liquidity & market making

All without begging the community for money or creating conflicts of interest from wealthy donors influencing the project’s direction.

This keeps Xelis aligned with its founding principles: privacy, neutrality, immutability, and decentralization.

A Reduction That Was Coded From the Beginning

The reduction from 10% to 5% was planned, written into the protocol, and committed into the codebase from the start. After approximately 1.5 years of chain time (calculated from block intervals), the fee automatically steps down.

Here is the exact code governing the transition:

pub const DEV_FEES: [DevFeeThreshold; 2] = [
    // Activated for 3M blocks
    DevFeeThreshold {
        height: 0,
        fee_percentage: 10
    },
    // Activated for the rest
    DevFeeThreshold {
        // after ~1.5 year it's reduced to 5%
        // 3 250 000 blocks * 15s of block time / 60s / 60m / 24h / 365d = 1.5 years
        height: 3_250_000, 
        fee_percentage: 5
    }
];

This code is embedded directly into the consensus rules. When the blockchain reaches block height 3,250,000, the fee changes — automatically and forever. See for yourself here on our open sourced github: https://github.com/xelis-project/xelis-blockchain/blob/8ba0cb7a5f9fa15900d2025b1efb36f90805bffa/xelis_daemon/src/config.rs#L83

A Funding Model That Protects Decentralization

Protocol-based funding is one of the most reliable and decentralized models for blockchain sustainability. It prevents:

• The risk of projects dying due to lack of funds
• Developers being pressured by wealthy backers
• Conflicts of interest in governance
• Reliance on hype cycles or speculation to remain solvent

Instead, Xelis secures its future by tying development resources to the protocol itself.

By reducing the dev fee from 10% to 5%, Xelis demonstrates:

• Long-term confidence
• Commitment to growth and efficiency
• Respect for the community & miners
• Adherence to immutable code

This strengthens both the economics and the credibility of the network.

Conclusion: Code Is Law

The upcoming fee reduction isn’t a marketing stunt. It’s not a governance drama. It’s not a discretionary decision.

It’s Xelis doing exactly what the code has always guaranteed it would do.

At block 3,250,000, the dev fund share decreases to 5%, improving miner rewards by 5%, marking the next chapter in Xelis’ evolution.

Thank you for reading this article on XELIS! If you enjoyed the content and found it useful, please consider supporting my work with a tip in Xelis ($XEL). Your contribution helps me keep producing quality content like this, and I genuinely appreciate your support!

— Cyber (Telegram: cybernated_coinage | Discord: cybernatedcoinage)

Tipping Address (XELIS ONLY):

xel:82zfcy3aa2pk2rzx6jpfnv7u3vkjcxhqs3hyghj45u9g2ccrrslsqk3vm3x

📌 Important Links:

• Xelis VM Playground: https://playground.xelis.io
• Xelis LinkTree: https://linktr.ee/xelis
• Website: https://xelis.org (Legacy: https://xelis.io)
• Documentation: https://docs.xelis.io
• Whitepaper: https://whitepaper.xelis.io/
• Github: https://github.com/xelis-project/
• Fiat Onramp: https://onramp.xelis.io
• Xelis Merchandise Store (PPN): https://xelis.io/merch or https://poolpartynodes.com/product-category/xelis-clothing-store/

📢 Social Links:

• Telegram: https://t.me/xelis_io
• Discord: https://discord.gg/xelis
• Twitter/X: https://twitter.com/xeliscurrency
• Facebook: https://www.facebook.com/xeliscommunity
• TikTok: https://www.tiktok.com/@xeliscommunity
• Instagram: https://www.instagram.com/xeliscommunity/
• LinkedIn: https://www.linkedin.com/company/xelis
• Reddit: https://www.reddit.com/r/xelis/
• YouTube: https://www.youtube.com/@xelis_project
• Official Medium: https://xeliscommunity.org

🔎 Explorer & Stats:

• Explorer: https://explorer.xelis.io
• Stats Page: https://stats.xelis.io

💰 Listings:

• Exchanges: https://www.xelis.org/exchanges
• CoinGecko: https://www.coingecko.com/en/coins/xelis
• LiveCoinWatch: https://www.livecoinwatch.com/price/XELIS-__XEL
• CoinPaprika: https://coinpaprika.com/coin/xel-xelis/

🌐 Community & Tools:

• Community Medium: https://xeliscommunity.org
• Wallets: https://www.xelis.org/resources
• Faucet: https://faucet.xelis.io