Axelar is a blockchain network that enables secure interchain communication through proof-of-stake consensus. Validators produce blocks and verify external chain states, while the AXL token is staked by tokenholders to delegate to validators and secure the network.

The AXL token is used for governance and paying network fees, though end-users are not required to hold it. Transaction fees and token conversions are handled backend, allowing users to pay gas only once in the source-chain token. Network rewards are inflationary, but fee mechanics could eventually make the supply deflationary.