What is MinoTari (WXTM)?

What Is MinoTari?

(Source: tari)

MinoTari (WXTM) is the primary Layer 1 token within the Tari blockchain ecosystem and serves as the security foundation for the Tari protocol. Tari aims to create universally accessible, sustainable, and community-led financial infrastructure. With its straightforward mining process, transparent architecture, and built-in support for decentralized applications (tapps), Tari is positioned as a next-generation blockchain platform with significant potential.

Tari is fully open-source, led by a group of visionary developers and designers, and thrives on community collaboration. Whether you’re a miner, builder, or DeFi enthusiast, there’s a place for you in the Tari ecosystem.

Tari Universe: Turn Any Computer Into a Miner

Tari Universe is a user-friendly application for PC and Mac that allows anyone to mine XTM, Tari’s native token, with ease. Users control how much computing power they contribute, and mining does not affect personal files or require technical expertise. This opens the door for anyone to help secure the network and earn token rewards without barriers.

This approach removes technical barriers found in traditional PoW mining. It allows anyone to become a miner in the simplest way possible, driving the vision of decentralization from every individual computer.

Dual-Layer Architecture, PoW Consensus, and Open Integration

The Tari network features a dual-layer design:

• Layer 1: Minotari Network (PoW consensus)
  This foundational layer handles core transactions, security, and mining rewards. Miners contribute hashrate to produce XTM, which is distributed across two algorithms—SHA3x and RandomX—striking a balance between efficiency and decentralization.

• Layer 2: Ootle Network (BFT consensus)
  All tapp activities—including DeFi, NFTs, GameFi, and SocialFi—happen on this layer. To create applications or participate in the Layer 2 economy, users must burn XTM at a 1:1 ratio to receive XTR, thus forging a seamless economic bridge between Layer 1 and Layer 2.

Tari’s Tokenomics Model

Tari’s tokenomics are designed for the future, with a total supply of 21 billion XTM released over approximately 27.8 years through an exponential decay schedule—starting fast, then slowing down over time.

PoW Miner Rewards

Block rewards decrease over time but never stop. The initial 12 years represent the main emission period, after which a perpetual 1% annual tail emission begins to maintain network operation and miner incentives. Unlike Bitcoin’s 4-year halving cycles, Tari’s rewards continuously decrease between blocks, with an approximate supply halving every three years.

Algorithmic Distribution:

• 50% to standalone SHA3x Tari miners

• 50% to RandomX miners via merged mining (compatible with Monero mining rigs)

This structure eases ASIC competition, increases access for individual miners, and encourages a fairer hashrate distribution.

Token Distribution: Supporting Ecosystem Growth and Community Involvement

Of the 21 billion XTM, 30% (6.3 billion) are pre-mined with strict lock-up and vesting mechanisms, allocated as follows:

Token Allocation Details

• Miner Rewards: 70% – The largest allocation, awarded based on contributed hashrate. No pre-mines for early investors, no airdrops—ensuring true fair launch.

• Protocol Development and Ecosystem Grants: 9% – For protocol enhancements, open-source efforts, and grant funding.

• Community Builders: 12% – To reward testnet participants, content creators, and community leaders who make real contributions.

• Contributors & Developer Teams: 4% – To incentivize long-term support, core development, and collaborative efforts.

• Community & Marketing: 5% – To fund promotion, global outreach, and events to maximize awareness and adoption.

(Source: tari/tokenomics)

This allocation model ensures resources are channeled into growth, engagement, and fairness across the ecosystem.

Turbine Model: The XTM-to-XTR Token Burn Mechanism

To link Layer 1 and Layer 2 economies seamlessly, Tari uses a unique Turbine model:

• Users must burn XTM at a 1:1 ratio to mint XTR for Layer 2 tapp activities.

• Every Layer 2 transaction incurs a fee, with a portion rewarding validators and another portion burned again.

• This continual burn mechanism effectively offsets token inflation and keeps the supply in dynamic balance.

(Source: tari/tokenomics)

This system not only controls overall supply but also creates a sustainable and rational incentive structure.

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Summary

As the rise of PoS consensus and airdrop trends dilutes fairness in blockchain, Tari is bringing the community back to its roots—earning tokens through contribution, gaining governance through participation, and building trust through transparency. MinoTari (WXTM) represents more than just the next PoW chain; it signals a holistic public chain revolution, reimagining everything from its foundational mechanics to application logic.