XYO operates as a DePIN ecosystem, encompassing consumer software, developer tools, a decentralized network, and digital assets. It is designed to facilitate and incentivize the aggregation, validation, and utilization of decentralized data. At the core of this ecosystem is the XYO token, which supports the accumulation and circulation of data, ensuring that both individual and organizational participants maintain control over their own data—a concept referred to as data sovereignty. Participants are able to earn rewards through the use of their data in the form of XYO tokens. The utilization of data is encouraged by offering immutable, tamper-resistant blockchain data, which can be applied across various domains, including AI modeling, metaverse applications, and data analytics.

XYO operates by incentivizing users to engage in data submission and collection through various methods, such as accumulating digital assets like the XYO token and utilizing a range of services provided by XYO. The data submitted in this manner is anonymous and becomes a permanent and immutable part of XYO’s decentralized data network, with the option for users to discontinue data submission at any time. Both XYO and third-party developers can access this data using XYO’s comprehensive suite of software and tools, which includes robust SDKs, documentation, and APIs. Transactions to acquire data are conducted using XYO tokens, thereby sustaining a strong economic cycle within the system.

XYO acts as a catalyst for DePIN-derived, sovereign data utilized in AI, metaverse, and numerous data analytics applications, promoting collaborative ecosystems where participants contribute data and are remunerated. Its aggregation and analytics capabilities cover a wide array of sectors, enabling organizations to extract valuable insights from complex datasets for better decision-making. The DePIN infrastructure of XYO allows for the integration of digital and real-world data streams to gain insights into diverse phenomena, supporting applications that include urban planning, environmental monitoring, and highly targeted human mobilization for promotional efforts.

XYO was launched in January 2018 as a DePIN IoT initiative by its parent company, XY Labs, Inc., followed by the establishment of the XYO Foundation. The co-founders, Arie Trouw and Markus Levin, identified the emerging need for a trustless, decentralized location oracle, leading to the release of the XYO token (ERC-20) in March of the same year. In February 2022, XYO expanded its original concept to aggregate and analyze a wide range of heuristic and digital data. This expansion beyond solely focusing on location and geospatial data allowed XYO to venture into broader Web3 markets, centered on data sovereignty, provenance, and permanence. In 2022, embracing tokenized real-world assets (RWA), XY Labs became one of the first companies globally to tokenize its stock and list it on an alternative trading system (ATS) known as tZERO ATS. Today, the $XYLB tokenized stock can be traded in over 40 countries, including the U.S. What role does XYO play in the creation of decentralized and sovereign data for services that require data aggregation and analytics? XYO operates a global network of decentralized devices supported by millions of active nodes. Many of these nodes are mobile devices utilizing COIN (coinapp.co), a DePIN mobile app powered by XYO technology. In 2024, XYO introduced xyOS, a free in-browser hub node featuring an expanding library of data sovereign decentralized applications (dApps) designed to encourage more users to transform their devices into XYO nodes. The data collected by this network of nodes encompasses a variety of sources, including, but not limited to, heuristic data, human-powered data such as behavioral patterns and opinions, and camera-based eyewitness evidence. XYO offers this aggregated data to third-party partners and possesses the capability to mobilize all or part of its network through incentives, enabling partners to target specific demographics or locations for promotions, data aggregation, or tasks.

XYO's ever-evolving open source toolkit features comprehensive SDKs, complete with detailed documentation, and APIs that are currently under active development. These SDKs empower developers to integrate with XYO’s network, ecosystem, and infrastructure. For instance, third-party developers can create dApps, giving users the option to incorporate them into their xyOS desktop. The APIs will enable developers to access XYO's extensive data library, which is meticulously curated to maintain user anonymity while enhancing utility for developers.

The XYO token serves as the currency within the XYO network. Incentivization plays a crucial role in XYO’s DePIN model of data sovereignty. By motivating users to participate through various incentives—including practical, everyday decentralized applications and XYO token rewards—XYO facilitates personal data sovereignty and ensures that any anonymous data shared has been willingly provided for use. XYO exclusively utilizes the XYO token for payment and reward channels, thereby reinforcing the token’s integral position within the XYO ecosystem.

The XYO token is a deflationary ERC-20 token, designed with no potential for modifications. The associated XYO Network operates on a protocol basis, with participation serving as the main mechanism for governance. Comparable to Bitcoin or Ethereum, if a majority of participants agree to an addition or modification to the protocol, it becomes the accepted official protocol. As a fully sovereign network and platform, each user has the autonomy to decide the extent of their participation in utilizing the protocol and selecting the parties they wish to engage with.