Arbitrum’s ecological game Layer 3Xai reveals airdrop news on the X platform. More than half of the token economics are supplied to the community and developers. Before the airdrop, this article will explore the past development history of Layer3 Xai.
Summary:
The Arbitrum crash incident reveals that “Bitcoin L2 and Ethereum L2” are going their separate ways.
Background:
Arbitrum crashed! Outage for 1.5 hours in the early morning, official: Sorting machine crashed due to surge in transactions.
Table of Contents:
Xai recently released its token economics, and the distribution mechanism has attracted attention.
Analysis of the foundation and Sentry node updates behind L3 technical solutions.
Understanding the core economic mechanism design and development dynamics of XAI and esXAI.
The future development of Xai is unpredictable, but its innovative attempts are worth recognizing.
On December 16, 2023, Arbitrum’s ecological game Layer3 Xai released a mysterious message on social platforms: “ai_dr_p soon”, which has garnered widespread attention from the cryptocurrency community. This short and implicit message seems to suggest that Layer3 Xai may be on the verge of an airdrop, injecting new vitality into the entire game ecosystem. As Xai is about to launch the airdrop, let’s review the past and present of this project.
Reviewing the development history of Xai, it released its token economics on October 26 this year. The total supply of Xai and esXai (staking) tokens reached a staggering 2.5 billion. What is worth noting is that over half of the supply, 50.1%, is allocated to the community, Sentry node operators, and the Data Availability Committee (DAC), demonstrating Xai’s value for its community members and contributors. At the same time, 22.4% of the tokens are allocated to investors, 20% to team members, and the remaining 7.5% is used for ecosystem development and maintenance.
At the technical level, XAI showcases its uniqueness. It is a permissionless Orbit chain that adopts the Arbitrum Nitro technology stack, aiming to bring a game-centric Layer 3 solution to the gaming industry. This technology not only improves transaction efficiency but also enhances network scalability, creating more possibilities for game developers and players.
Furthermore, Xai’s network allows anyone to participate through operating nodes. This not only provides an opportunity for ordinary users to earn network rewards but also allows them to participate in network governance. This feature reflects Xai’s pursuit of decentralization and provides community members with substantial opportunities for participation and contribution.
It is worth mentioning that Xai is developed by Offchain Labs using Arbitrum technology. This collaboration showcases Xai’s potential in technical innovation and ecosystem building, as well as its position and influence in the cryptocurrency industry.
With the community’s increasing anticipation for Xai’s airdrop, we can foresee new development opportunities for this ecosystem. In the following sections, we will delve deeper into Xai.
To understand XAI, we need to examine the financial support and technical architecture behind it, which are crucial to its success. Like many blockchain projects, XAI has a foundation behind it for support. Xai is supported by the Ex Populus Foundation, which raised $12 million two years ago, along with some undisclosed funds. This funding scale, especially compared to Offchain Labs’ fundraising of over $120 million, demonstrates XAI’s strong financial foundation.
There are some new developments regarding the Sentry nodes for XAI Games. As an L3 blockchain, XAI Games is designed to allow different operators to run nodes on various platforms, whether it’s cloud, laptops, or desktop computers, ensuring the integrity and security of the network. This flexibility provides new opportunities for widespread user participation in blockchain operations.
The sales method of Sentry nodes is particularly noteworthy. XAI Games plans to sell 50,000 node key NFTs through a Dutch auction. This sales method allows prices to vary over time, starting at 0.13E, and the current price at the 9th tier has reached 0.4E. Linking the price of Sentry nodes to Ether may be a strategy to attract investors, but it also brings considerations of market price volatility.
In conclusion, the financial support behind the Xai Foundation and the innovative sales strategy of Sentry nodes constitute the two pillars of the XAI project. This not only provides a solid financial foundation for the future development of XAI but also offers participants new technological and economic opportunities. In the following content, we will explore the token economy of Xai and its potential impact on the entire ecosystem.
XAI is not only the recording token of the Xai blockchain but also the cornerstone of its ecosystem. Similar to traditional L1 and L2 tokens, XAI has broad and important utility. It is fully transferable and serves as the gas fee token in the Xai L3 ecosystem. This means that all network operations and transactions require the use of XAI as fuel.
XAI’s total supply is clearly distributed among different groups. Among them, 20% is allocated to the core team and early contributors, which begins unlocking 6 months after token generation event (TGE) and gradually unlocks within the following 36 months. Additionally, 22.41% of the supply is purchased by early investors, which begins unlocking 6 months after TGE and completes within 24 months. In terms of ecosystem allocation, 2% of the supply is designated for market makers and immediately unlocked at TGE; 5.5% of the supply is used for ecosystem development, which begins unlocking 6 months after TGE and completes within 36 months.
XAI can also be exchanged for esXAI, which is a special type of token. Unlike XAI, esXAI is non-transferable and primarily used for staking in the Xai ecosystem, providing multiple benefits for stakers. This includes rewarding Sentry node operators and providing them with a range of privileges and benefits. The staking mechanism of esXAI allows node operators to freely adjust their staked esXai between three different accounts:
Yield Account: Node operators staking esXai in this account can earn additional esXai rewards.
Culture Account: By staking esXai, node operators can participate in exclusive game-related activities and NFTs on the Xai blockchain.
Governance Account: Node operators can gain governance rights in the DAO by staking, including proposing the use of DAO/foundation funds.
The exchange rules between Xai and esXai are bi-directional, allowing users to choose based on their needs. The process of converting Xai to esXai is free and does not incur penalties, with a fixed ratio of 1:1. Converting esXai back to Xai involves a lock-up period, which users can determine for themselves. The exchange ratio varies based on the length of the lock-up period, with longer lock-up periods offering higher exchange ratios.
This exchange mechanism significantly impacts the Xai ecosystem. Firstly, it introduces a certain level of deflationary pressure to Xai, as all gas paid within the Xai ecosystem is burned. Secondly, the emission of esXai for Sentry nodes depends on the current circulating supply of Xai and esXai. This dynamically designed emission rate aims to automatically adjust based on changes in the total supply, ensuring supply flexibility and adaptability.
Furthermore, the exchange mechanism between Xai and esXai inherently reduces market selling pressure. Combined with Xai’s powerful game ecosystem, including relationships with major partners like Tencent, this design becomes particularly important. It not only supports the continued development of the Xai ecosystem but also provides a time window for community members to witness explosive ecosystem growth and choose to hold.
The network rewards for Sentry nodes in the Xai ecosystem are an aspect worth paying attention to. While accurately predicting the rewards for each Sentry node is difficult, it is possible to estimate different reward scenarios based on market conditions and assumptions. These estimations are based on assumptions such as the total supply of XAI and esXAI not exceeding 2.5 billion, supply deflation caused by 100% burning of gas, and the Xai Foundation not selling more than 50,000 Sentry keys.
The economic models of XAI and esXAI constitute the core of the Xai ecosystem, and their interplay not only affects the execution efficiency of the network but also has profound implications for the stability and sustainability of the entire ecosystem.
With the development and maturation of the Xai ecosystem, the designs of XAI and esXAI tokens demonstrate its ambition to build a diversified and sustainable blockchain environment.
XAI, as the fundamental token of the ecosystem, provides the fuel necessary for network execution, while the introduction of esXAI brings more staking opportunities and rewards for participants. This dual-token system not only ensures effective network execution but also encourages community participation and investment.
As a result, we can foresee that the XAI ecosystem will continue to attract more participants and investors. Its deflationary mechanism and staking incentives are expected to provide a stable and vibrant ecological environment for Xai in the future. This will not only promote the development within the Xai ecosystem but also potentially bring new innovation and growth momentum to the entire blockchain industry.
Related Reports:
Arbitrum DAO’s new proposal to distribute money! Team hires “engineers more expensive than Harvard lawyers”?
Radiant Capital token enters deflation, TVL returns to high point, will it explode in the Arbitrum trend?
Vertex’s road to revival: from Terra to Arbitrum, triggering a DEX revolution?
Tags:
Airdrop
Arbitrum
Layer3 Xai
Scaling
Game