Tezos is an open-source project for assets and applications that offers a platform to create smart contracts and build decentralized applications, and XTZ is the native token of the Tezos blockchain. To activate the account and make transfers, a certain amount of XTZ is required to pay the fees.
● 0.06425 XTZ must be locked to create an account
The Tezos network adopts the Liquid Proof-of-Stake consensus mechanism which is a construction of Proof-of-Stake. Token holders are required to participate in the consensus process. For this reason, each account should hold a certain amount of XTZ as a security deposit to guarantee integrity and participation. Currently, the minimum fee for creating a new account has been lowered to 0.06425 XTZ. This threshold for account creation prevents malicious users from generating massive spam addresses and helps maintain a stable system.
If the receiving address of a transaction is not activated, an additional 0.06425 XTZ is required for address activation, on top of the original transaction amount. This feature ensures that the receiving address holds enough XTZ to participate in the consensus process.