What Is ICX Crypto Token? A Complete Guide

ICX is the beating heart of the ICON blockchain, a network designed to connect communities, apps, and enterprises through decentralized technology.

Originally launched as an ERC-20 token in the early days of the project, ICX transitioned into its own native asset in 2018 with the launch of ICON’s mainnet.

Since then, it has evolved into a versatile token with multiple roles, from governing the blockchain to fueling decentralized finance (DeFi) applications.

In this article, we explore what ICX is, what it’s used for, and how holders can earn rewards through staking and DeFi strategies.

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Key Takeaways

1. ICX is the native currency of the ICON blockchain: Used for governance, transaction fees, DeFi, and peer-to-peer payments.

2. Staking ICX can yield annual rewards: Rates vary between around 6% and 8%, depending on network participation.

3. DeFi on ICON offers extra earning potential: Through platforms like Balanced, Omm, and Optimus.

What Is ICX?

ICX began its life as an ERC-20 token, helping to fund and launch the ICON project. The goal was to create a blockchain capable of connecting various communities, businesses, and services into a single interoperable network.

By mid-2018, the ICON mainnet went live, and ICX holders swapped their ERC-20 tokens for native ICX coins.

Today, ICX is more than just a digital asset. It powers the ICON economy, enabling governance, facilitating transactions, and driving decentralized applications.

Like fuel for a car, ICX is essential for running anything on the ICON network. Every transaction, whether sending tokens, minting NFTs, or executing smart contracts, requires ICX.

Its value is not just speculative. ICX is tied to tangible utility within a functioning blockchain ecosystem.

This combination of governance power, payment utility, and integration into DeFi protocols makes ICX a core player in the ICON network’s continued growth.

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What Is ICX Used For?

ICX plays multiple roles in the ICON ecosystem, and its utility spans governance, fees, and payments.

Governance

Holders can stake ICX and delegate it to validators who maintain the network and participate in decision-making. Staking is rewarded with daily payouts, often between 6% and 8% annually.

The reward rate depends on how much ICX across the network is staked, higher overall staking lowers the percentage, and lower staking increases it.

Transaction Fees

Every action on the ICON blockchain costs a small fee, paid in ICX. This applies to everything from transferring funds to using decentralized identity services like Zzeung or document verification tools like broof.

Peer-to-Peer Currency

ICX can be sent directly between users anywhere in the world, without intermediaries. It also functions as a currency inside dApps, including ICON’s NFT marketplace, Craft.

This flexibility allows ICX to support both enterprise use cases and everyday blockchain activity, giving it practical relevance beyond trading.

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How to Earn Yield on ICX

Earning rewards from ICX can be done through two main routes: native staking and decentralized finance.

Native Staking

For risk-averse holders, staking ICX within ICON’s governance system is the most straightforward method. Using an ICON wallet, you delegate your ICX to a validator.

Your tokens are locked, but in return you receive daily ICX rewards. If you decide to unstake, there is a short waiting period before the tokens are released.

DeFi Opportunities

For those seeking higher potential returns, ICON’s DeFi platforms offer additional strategies:

Balanced: Deposit ICX, convert it to sICX (staked ICX), and use it as collateral to mint bnUSD, or provide liquidity in pools to earn BALN tokens.

Omm: Lend or borrow ICX and other assets while earning OMM governance tokens.

Optimus: Automates DeFi yield strategies, letting users deposit ICX and choose a preferred risk-reward profile.

These DeFi platforms give ICX holders flexibility to diversify earnings, though they come with varying levels of risk.

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Conclusion

ICX is more than a simple cryptocurrency. It is the foundation of the ICON blockchain’s economy, governance, and application layer.

From enabling enterprise tools like Zzeung and broof to fueling DeFi protocols like Balanced and Omm, ICX serves a diverse set of functions.

Staking provides a steady stream of rewards for committed holders, while DeFi adds layers of opportunity for those willing to explore.

For traders and investors looking to engage with ICX securely, using a reliable exchange is essential.

Bitrue offers an easy and safe way to buy, store, and trade ICX, combining a user-friendly interface with robust security measures.

Whether you are staking for passive income or actively trading, Bitrue makes participating in the ICON ecosystem more accessible.

FAQ

Is ICX an ERC-20 token?

It started as an ERC-20 token but was swapped for native ICX coins when the ICON mainnet launched in 2018.

How much can I earn by staking ICX?

Rewards vary, but they typically range from around 6% to 8% annually, depending on the percentage of the total supply staked.

What wallets can I use for ICX staking?

You can use ICON’s native wallets, such as Hana Wallet, or other compatible wallets that support staking.

Are ICX DeFi platforms risky?

Like all DeFi, there are risks such as smart contract vulnerabilities and market volatility, so it’s important to research before committing funds.

Can ICX be used for real-world applications?

Yes, ICX powers enterprise solutions like decentralized identity verification (Zzeung) and tamper-proof document issuance (broof).

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