About

Axelar is a cross-chain communication network that enables inter-chain messaging and transfers across networks. It also aims to provide a programmable execution layer for deploying cross-chain decentralized applications.

History

Axelar was founded by Sergey Gorbunov and Georgios Vlachos and first introduced in February 2021 as an interoperability network that aimed to enable cross-chain communication across Web3. Its development began with the launch of an incentivized testnet that lasted four months beginning in February 2021, followed by a mainnet launch one year later, in February 2022. In May 2022, Axelar’s General Messaging Passing (GMP) protocol went live on the mainnet, enabling one-click interchain experiences for users. In September 2022, it implemented Quadratic voting to modify the network’s node consensus system. It also released the AXL token to the mainnet in the same month to incentivize permissionless node participation on the network.

In 2023, Axelar underwent several incremental mainnet upgrades, including the full transition of the network’s governance for the gateway contract from being managed via a multi-sig to being governed by Axelar nodes. Notably, in October 2023, the Axelar Foundation proposed short, medium, and long-term plans to modify AXL’s tokenomics as follows:

• Short-term: sustainably adjust the network's inflation rate to support more EVM chains and introduce a gas-burning mechanism to counterbalance inflation.
• Medium-term: Use Virtual Machine smart contracts for connections and replace inflationary rewards with specific reward pools for each new chain.
• Long-term: Increase the use of light-client connections where appropriate.

Based on a commercially reasonable search as of May 2024, only the adjustments to the network inflation rate have been implemented on the mainnet. A commercially reasonable search found no active proposals or further disclosures regarding the other proposed plans.

The Interchain Token Service was released to the mainnet in February 2024, allowing developers to deploy customizable interchain tokens across connected chains. In March 2024, following the successful approval of Proposal 195, the Axelar Virtual Machine went live on mainnet enabling programmable cross-chain transfers and cross-chain developments.

Axelar’s 2024 roadmap highlights the following development plans:

• Release Axelar Virtual Machine to the mainnet, enabling chain-agnostic development on Axelar.
• Enable permissionless connections for arbitrary chains via Interchain Amplifier with a focus on connecting Ethereum’s ever-increasing L2 ecosystem.
• Enhance the native fungibility and customization properties of Interchain Tokens
• Introduce a gas-burning mechanism for the AXL token which could make the AXL token deflationary.
• Support diverse consensus approaches beyond EVM-based consensus systems, including Solana, Stellar, and Move-based chains like Aptos and Sui.
• Overhaul the network’s gas-pricing model to improve the accuracy of services that estimate cross-chain gas fees over Axelar.

A commercially reasonable search found no definite release dates published for the above roadmap items.