Tezos (XTZ) sustainability report

Tezos is present on the following networks: Tezos.

The Tezos blockchain network operates on a Liquid Proof of Stake (LPoS) consensus mechanism, a sophisticated design that integrates flexible staking participation with an innovative on-chain governance model. This core mechanism allows XTZ token holders to contribute to network security by either directly staking their tokens or delegating them to a validator, commonly known as a baker, without transferring ownership of their assets. This delegation feature significantly broadens participation, making network security more accessible. Bakers are central to the network's operations, responsible for creating new blocks (baking) and validating other blocks through endorsement. Their selection is directly proportional to the amount of XTZ staked or delegated to them; a higher stake increases their probability of being chosen for these critical tasks. To bolster network security further, endorsers are randomly selected from the pool of active bakers to validate and approve blocks proposed by other bakers. A distinctive characteristic of Tezos is its self-amendment protocol, which underpins its adaptive on-chain governance. This system empowers XTZ token holders to propose, vote on, and implement network upgrades directly on the blockchain, bypassing the need for disruptive hard forks. This capacity for self-evolution ensures that the Tezos network can continuously adapt and enhance its functionalities based on community and developer input, fostering a highly flexible and resilient blockchain environment that maintains decentralization while enabling consistent improvement.

Tezos is present on the following networks: Tezos.

The Tezos network is designed with a comprehensive set of incentive mechanisms and fee structures aimed at promoting active participation, ensuring robust security, and supporting the network's long-term sustainability. Key among these incentives are the rewards provided for baking and endorsing. Bakers, who perform the essential function of creating new blocks, receive XTZ tokens as compensation for their efforts. Similarly, endorsers, tasked with validating and approving blocks proposed by others, are also rewarded in XTZ. This dual reward system encourages consistent and honest engagement from all network participants. To further enhance inclusivity, Tezos offers delegation incentives, allowing XTZ holders who prefer not to run a full validator node to delegate their tokens to an active baker. In return, these delegators earn a share of the baker’s rewards, democratizing access to network participation and strengthening overall security. To safeguard network integrity, bakers are required to post a security deposit, or bond, in XTZ. This collateral is subject to forfeiture if a baker engages in malicious activities, thereby creating a strong financial deterrent against dishonest behavior and aligning bakers' interests with the health of the network. Regarding fees, users initiating transactions, such as transferring funds or interacting with smart contracts, pay transaction fees in XTZ. These fees are then distributed to bakers and endorsers, providing additional economic motivation for their critical validation and security services. The network also employs an inflationary reward model, periodically creating and distributing new XTZ tokens to bakers and endorsers. This model fosters continuous participation and network security while managing token availability over time through a gradual increase in supply.

Tezos is present on the following networks: Tezos.

The energy consumption of the Tezos blockchain network is quantified through a comprehensive "bottom-up" methodology that aggregates energy usage across its various operational components. This approach identifies individual nodes as the primary contributors to the network's overall energy footprint. The foundational assumptions for these calculations are derived from empirical data, which is gathered using a combination of public information sources, open-source crawlers, and specialized in-house crawling technologies. A critical step in estimating the hardware used within the network involves determining the technical specifications required to operate the Tezos client software. The energy consumption profiles of these identified hardware devices are then precisely measured in certified test laboratories to ensure accuracy. To achieve a holistic scope, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is utilized, when available, to identify all relevant implementations of the crypto-asset. These mappings are consistently updated based on data from the Digital Token Identifier Foundation, reflecting the dynamic evolution of the network. Information concerning the hardware deployed and the number of participants in the network is based on assumptions rigorously verified with empirical data. Participants are generally presumed to act with economic rationality. As a precautionary principle, in situations of uncertainty, estimates for potential adverse impacts are conservatively adjusted upwards. When determining the energy consumption of a token present on networks like Tezos, the energy consumption of each relevant network is calculated first. A fraction of this network energy is then attributed to the specific token based on its activity within that network. One of the sources utilized for these calculations is tzStats.

Tezos is present on the following networks: Tezos.

The methodology for assessing the key energy sources and the proportion of renewable energy contributing to the Tezos network's operation involves a multi-faceted data collection and analytical process. To determine the extent of renewable energy utilization, the geographical locations of the network's nodes are first pinpointed. This identification relies on an analysis of public information sources, alongside the application of both open-source and proprietary in-house crawlers. In scenarios where direct geographical distribution data for nodes is not available, the methodology employs reference networks. These reference networks are carefully chosen for their structural similarities to Tezos, especially in terms of their incentivization frameworks and consensus mechanisms, ensuring that their energy consumption characteristics serve as a comparable proxy. The gathered geographical information is then integrated with extensive public datasets provided by "Our World in Data," a recognized source for global statistical and environmental information. This data integration facilitates a thorough evaluation of the energy mix powering the nodes. Furthermore, the energy intensity of the Tezos network is quantified, calculated as the marginal energy cost associated with processing each additional transaction. The foundational data for this analysis is drawn from reports such as Ember (2025) and the Energy Institute's Statistical Review of World Energy (2024), with significant data processing contributed by Our World in Data. Specifically, the "Share of electricity generated by renewables" dataset from these sources is instrumental in assessing Tezos's reliance on sustainable energy options. More details can be found via Share of electricity generated by renewables - Ember and Energy Institute.

Tezos is present on the following networks: Tezos.

The quantification of Greenhouse Gas (GHG) emissions attributable to the Tezos network employs a systematic methodology, akin to the approach for energy consumption analysis. This process begins by identifying the geographical locations of the operational nodes within the Tezos network. This crucial geographical intelligence is compiled through diligent scrutiny of public information, supplemented by the deployment of open-source and internally developed crawlers designed to gather precise location data. In situations where specific geographical distribution data for nodes cannot be obtained, the methodology resorts to a comparative analysis, substituting the missing information with data from carefully selected reference networks. These reference networks are chosen based on their structural and operational similarities to Tezos, particularly in their incentive frameworks and consensus mechanisms, ensuring the relevance of their environmental impact profiles. The collected geographical insights are then thoroughly integrated with publicly accessible environmental data from "Our World in Data." This integration is vital for correlating node locations with regional electricity generation characteristics, which directly influence GHG emission calculations. A key metric in this assessment is the GHG intensity, which is defined as the marginal emission produced per additional transaction processed on the Tezos blockchain, offering insight into the environmental impact on a per-transaction basis. The primary data sources underpinning these calculations are significant reports from Ember (2025) and the Energy Institute's Statistical Review of World Energy (2024), with extensive data processing conducted by "Our World in Data." Notably, the "Carbon intensity of electricity generation" dataset from these sources is pivotal for determining the emissions factor associated with the electricity consumed by the network, and it is licensed under CC BY 4.0. Further information is available through Carbon intensity of electricity generation - Ember and Energy Institute.