Arbitrum’s ecological game Layer 3Xai reveals airdrop information on the X platform. Over half of the token economy’s supply is provided to the community and developers. In anticipation of the upcoming airdrop, this article will explore the past development history of Layer3 Xai.
Recapitulating the development history of Xai, its token economics were released on October 26, 2023. Xai and esXai (staking) have a total supply of an astonishing 2.5 billion tokens. Of particular note, over half of the supply, 50.1%, is allocated to the community, Sentry node operators, and the Data Availability Committee (DAC), demonstrating Xai’s commitment to its community members and contributors. Additionally, 22.4% of tokens are allocated to investors, 20% to team members, and the remaining 7.5% is used for ecosystem development and maintenance.
Technically, XAI showcases its uniqueness as an unpermissioned Orbit chain built on the Arbitrum Nitro technology stack, aiming to bring a game-centric Layer 3 solution to the gaming industry. This technology not only enhances transaction efficiency but also enhances network scalability, creating more possibilities for game developers and players.
Furthermore, Xai’s network supports participation from anyone through operating nodes. This not only provides an opportunity for regular users to earn network rewards but also allows them to participate in network governance. This feature reflects Xai’s pursuit of decentralization and provides substantial opportunities for community members to participate and contribute.
It is worth mentioning that Xai is developed by Offchain Labs utilizing Arbitrum technology. This partnership showcases Xai’s potential in technological innovation and ecosystem construction, as well as its position and influence in the cryptocurrency industry.
With growing expectations for Xai’s airdrop in the community, we can anticipate new development opportunities for this ecosystem. In the following sections, we will delve into Xai’s details.
To gain a deeper understanding of XAI, we need to examine the financial support and technical framework behind it, which are key to its success. Like many blockchain projects, XAI is supported by a foundation. Xai is supported by the Ex Populus Foundation, which raised $12 million two years ago, in addition to undisclosed funds. This funding scale, especially compared to Offchain Labs’ funding of over $120 million, demonstrates the solid financial foundation of the XAI project.
Regarding the Sentry nodes of XAI Games, there have been some new developments. XAI Games, as an L3 blockchain, is designed to allow different operators to run nodes on various platforms, whether it is cloud-based, on laptops, or desktop computers, ensuring network integrity and security. This flexibility provides new opportunities for widespread user participation in blockchain operations.
The sales method of Sentry nodes is particularly intriguing. XAI Games plans to sell 50,000 node key NFTs through a Dutch auction. This sales method allows the price to vary over time, starting at 0.13E, and the current price at the 9th layer has reached 0.4E. Linking the price of Sentry nodes to Ether may be a strategy to attract investors, but it also introduces considerations of market price fluctuations.
In conclusion, the financial support behind the Xai Foundation and the innovative sales strategy of its Sentry nodes constitute the two main pillars of the XAI project. They not only provide a solid financial foundation for the future development of XAI but also offer new technological and economic opportunities for participants. In the upcoming content, we will explore Xai’s token economic system 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 significant utility, serving 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 allocated among different groups. Among them, 20% is allocated to the core team and early contributors, which unlocks six months after the token generation event (TGE) and gradually unlocks within the following 36 months. Additionally, 22.41% of the supply is purchased by early investors, which unlocks six months after the TGE and completes unlocking within 24 months. In terms of ecosystem allocation, 2% of the supply is designated for market makers and unlocks immediately after the TGE, while 5.5% is allocated for ecosystem development, which unlocks six months after the TGE and completes unlocking within 36 months.
XAI can also be converted into esXAI, a special type of token. esXAI differs from XAI as it is non-transferable and primarily used for staking in the Xai ecosystem, providing stakers with various benefits. This includes rewarding Sentry node operators and granting them a range of privileges and advantages related to exclusive activities and NFTs on the Xai blockchain. The staking mechanism of esXAI allows node operators to freely adjust their staked esXAI between three different accounts:
1. Yield Account: Node operators staking esXAI in this account can earn additional esXAI rewards.
2. Culture Account: Node operators staking esXAI can participate in game-related exclusive activities and NFTs on the Xai blockchain.
3. Governance Account: Node operators can gain governance rights over the DAO, including proposing the use of DAO/Foundation funds, by staking esXAI.
The conversion rules between Xai and esXai are bidirectional, allowing users to choose according to their needs. Converting Xai to esXai is a free process without any penalties, and the ratio is always 1:1. However, converting esXai back to Xai involves a lock-up period, which users can decide for themselves. The conversion ratio varies based on the length of the lock-up period, with longer lock-up periods offering higher conversion ratios.
This conversion mechanism has a significant impact on the Xai ecosystem. Firstly, it introduces a certain degree of deflationary pressure for Xai, as all Gas fees paid within the Xai ecosystem are burned. Secondly, the emission of esXAI for Sentry nodes depends on the current circulating supply of Xai and esXAI. This dynamic emission rate design aims to automatically adjust based on changes in the total supply, ensuring flexibility and adaptability in supply.
Furthermore, the conversion mechanism between Xai and esXai inherently reduces selling pressure in the market. This design becomes particularly important when combined with Xai’s powerful gaming ecosystem, including partnerships with major players like Tencent. 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 noting. While accurately predicting the rewards for each Sentry node is difficult, estimates can be made based on market conditions and assumptions. These estimates are based on assumptions that XAI and esXAI total supply will not exceed 2.5 billion, supply deflation caused by 100% burning of Gas, and Xai Foundation will not sell more than 50,000 Sentry keys, among others.
The economic model of XAI and esXAI constitutes the core of the Xai ecosystem, and their interaction not only affects the efficiency of network execution but also has profound effects on 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 their ambition in building a diversified and sustainable blockchain environment.
As the fundamental token of the ecosystem, XAI provides the fuel necessary for network execution, while the introduction of esXAI brings more staking opportunities and rewards for participants. This dual-token system ensures the efficient execution of the network and encourages community participation and investment.
Therefore, 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.