What Is XEM? A Beginner’s Guide to the Core Token of the NEM Ecosystem

What is XEM?

Figure:https://docs.nem.io/pages/

XEM is the native cryptocurrency of the NEM blockchain network, with the full name “New Economy Movement” as its token symbol. As an innovative digital asset, XEM is not only used for value transfer but also serves as an important tool for the operation and incentives of the entire NEM network.

NEM officially launched in 2015 and is one of the earliest blockchain projects with a complete smart account mechanism. The existence of XEM enables this platform to have powerful asset transfer, multi-signature, secure communication, and decentralized governance functions.

The technical foundation of the NEM blockchain

Unlike blockchains that use Proof of Work (PoW) or Proof of Stake (PoS) like Bitcoin and Ethereum, NEM innovatively proposes the Proof-of-Importance (PoI) mechanism.

The core of PoI is to allocate block rights based on the “activity level” of the account, rather than simply based on the amount of coins held. This means:

• Accounts with frequent transactions will receive a higher “importance” score.
• The longer you hold your coin and the more active you are, the more likely you are to receive “Harvesting” rewards.

Therefore, the distribution of XEM focuses more on the actual participation of users in the network, rather than merely “holding coins to earn interest.”

The account and address system of XEM

Each XEM account is generated by a pair of public and private keys under the Ed25519 elliptic curve. The public key can be converted into a readable address through the following steps:

1. Use SHA3-256 for public key hashing;
2. Process the result of the first step again with RIPEMD160;
3. Add the network identifier (e.g., the mainnet is 0x68);
4. Encrypt data and generate a checksum;
5. Finally, generate the NEM address through Base32 encoding.

This mechanism gives XEM addresses strong tamper-proof capabilities while avoiding the loss of coins due to inputting incorrect addresses.

The trading mechanism of XEM

XEM transfers not only support basic transfer functions but also support encrypted messages, notes, and multi-signature control. Each transaction will incur a corresponding fee:

• A fee of 0.05 XEM is charged for every transfer of 10,000 XEM, with a maximum of 1.25 XEM.
• Transactions with attached messages incur an additional charge of 0.05 XEM for every 32 bytes.

In addition, NEM also provides a “Delegated Harvesting” mechanism, which allows users to delegate their PoI weight to the server for block packaging, thereby achieving cold wallet mining.

Image:https://www.gate.com/trade/XEM_USDT

XEM has been in a downward trend for the past month. As of July 2, 2025, the price of XEM is approximately 0.0026 USD. Please trade cautiously and be aware of the risks.

Summary

XEM is the core Token in the NEM network. It is not just a digital currency, but also a technical medium that integrates economic behavior and network activity. Through the PoI consensus mechanism, a powerful account management system, and encrypted communication features, XEM provides users with a low-energy, high-security blockchain platform.

For newbies, what XEM offers is not just an investment opportunity, but also a way to participate in the New Economy Movement.