Tezos validator operator TenX aims to generate staking revenue and has established a strategic partnership by raising 5.5 million XTZ.

Blockchain infrastructure company TenX Protocol (TSX-V: TNX) announced that as part of its strategic staking partnership with the Tezos Foundation, it has raised approximately $3.25 million by purchasing 55 million XTZ, the native token of the Tezos network, from the market. This purchase was completed through open market and over-the-counter transactions between January 2 and January 19, 2025, at an average price of $0.5868 per token. The funds were drawn from the company’s cash reserves from a previous funding round completed in August 2024.

Validator-Operated Staking Strategy and Yield Forecast

TenX plans to stake the purchased XTZ through independently operated validators, transforming it into a continuous revenue stream. According to co-founder and COO Philip Chibra, the “reasonable benchmark” for Tezos staking yields is estimated to be between 8% and 10% annually, depending on network conditions. Rewards earned through validator operations and the associated income are expected to be reflected in the company’s financial statements and management analyses, which are publicly available.

TenX’s proprietary validator operation model contributes to the security of proof-of-stake (PoS) networks while generating staking rewards to earn revenue. This “Validator First” strategy exemplifies the company’s management approach, focusing on value creation at the infrastructure layer.

Reasons for Choosing Tezos and Maintaining Independent Governance

As part of the partnership, the Tezos Foundation plans to delegate some of its XTZ holdings to TenX’s validator operators. However, Chibra emphasizes that this delegation pertains solely to staking and does not involve governance control. TenX independently votes on Tezos protocol upgrades, ensuring that delegation does not influence governance expectations or protocol decision-making.

The choice of Tezos over more well-known ecosystems like Ethereum or Solana is based on its superior governance model, proven live upgrades, and technological maturity. The company’s due diligence process prioritized risk assessment of validators, network decentralization, tokenomics, and operational feasibility.

Plans for Expansion to Other PoS Ecosystems

TenX has stated that it will pursue similar strategic partnerships within other proof-of-stake ecosystems beyond Tezos, although specific targets have not been disclosed. Chibra notes that whether publicly traded companies compete for protocol delegation depends on the progress of participant expansion.

He states, “If delegation flows to operators investing in reliability, security, transparency, and community contribution, the quality of validators and network resilience could be strengthened,” indicating that high-quality validator operations are expected to positively impact the entire PoS ecosystem.

Market Data Update

As of writing, XTZ is trading at approximately $0.47, down about 6.39% over the past 24 hours. With increasing competition among validators on the Tezos network, the entry of infrastructure companies like TenX is being closely watched as a movement that could enhance the maturity and transparency of the PoS ecosystem.