Arbitrum’s ecological game Layer 3Xai has revealed airdrop news on the X platform. Over half of the token economics supply will be provided to the community and developers. Before the airdrop, this article will explore the past development history of Layer3 Xai.
(Background:
Arbitrum crash incident reveals that “Bitcoin L2 and Ethereum L2” have taken different paths
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Table of Contents:
Xai recently released token economics, and its distribution mechanism has attracted attention.
Analysis of the Foundation and Sentry Node New Trends behind the L3 technology solution: XAI
Understanding XAI and esXAI: Understanding the core economic mechanism design and development dynamics of the project
The future development of Xai is unpredictable, but its innovative attempts are commendable.
On December 16, 2023, the Arbitrum ecological game Layer3 Xai released a mysterious message “ai_dr_p soon” on social platforms, which has attracted widespread attention from the cryptocurrency community. This short and implicit information seems to imply that Layer3 Xai may be about to conduct 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.
Looking back at the development history of Xai, it released its token economics on October 26th this year. The total supply of Xai and esXai (staking) tokens reached an astonishing 2.5 billion. More importantly, over half of the supply, 50.1%, was allocated to the community, Sentry node operators, and Data Availability Committee (DAC), demonstrating Xai’s value for its community members and contributors. At the same time, 22.4% of the tokens were allocated to investors, 20% to team members, and the remaining 7.5% for ecosystem development and maintenance.
On the technical side, XAI showcases its uniqueness. It is a permissionless Orbit chain that adopts 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 the network’s scalability, creating more possibilities for game developers and players.
In addition, Xai’s network supports anyone to participate through operating nodes. This not only provides ordinary users with the opportunity to earn network rewards but also allows them to participate in network governance. This feature embodies Xai’s pursuit of decentralization and provides community members with substantial participation and contribution opportunities.
It is worth mentioning that Xai is developed by Offchain Labs using Arbitrum technology. This collaboration demonstrates the potential of Xai in technological innovation and ecosystem construction, as well as its position and influence in the cryptocurrency industry.
With the community’s increasing anticipation for the Xai airdrop, we can anticipate new development opportunities for this ecosystem. In the following sections, we will delve into Xai.
To understand XAI in depth, we need to explore the financial backing and technical architecture behind it, which are the keys to its success. Like many blockchain projects, XAI also has a foundation to support it. 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’ funding of over $120 million, indicates a solid financial foundation for the XAI project.
There are some new developments regarding the Sentry nodes of XAI Games. As an L3 blockchain, XAI Games’ design allows different operators to run nodes on various platforms, whether it be cloud, laptop, or desktop computers, to ensure network integrity and security. This flexibility provides new opportunities for a wide range of users to participate in blockchain operations.
Of particular interest is the sales method of the Sentry nodes. 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 layer 9 has reached 0.4E. Linking the Sentry node price to Ether may be a strategy to attract investors, but it also brings considerations of market price volatility.
In summary, the financial support behind the Xai Foundation and the innovative sales strategy of its 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 next section, we will explore the token economics of Xai and its potential impact on the entire ecosystem.
XAI is not only the record 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 as it 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.
The total supply of XAI is clearly allocated among different groups. Among them, 20% is allocated to the core team and early contributors, which starts unlocking 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 starts unlocking six months after the TGE and completes unlocking within 24 months. In terms of ecosystem distribution, 2% of the supply is designated for market makers, which unlocks immediately after TGE; 5.5% of the supply is used for ecosystem development, which starts unlocking six 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, bringing various benefits to 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 among 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 the right to propose the DAO/foundation funds.
The exchange rules between Xai and esXai are bidirectional, allowing users to choose according to their needs. The process of exchanging Xai for esXai is free and does not incur penalties, and the ratio is always 1:1. However, exchanging esXai back to Xai involves a unlocking period, which users can decide on their own. The exchange ratio varies based on the length of the locking period, with longer periods providing higher exchange ratios.
This exchange mechanism has a significant impact on the Xai ecosystem. Firstly, it brings a certain degree of deflationary pressure to Xai, as all gas paid in the Xai ecosystem is destroyed. 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 flexibility and adaptability of the supply.
Furthermore, the exchange mechanism between Xai and esXai inherently reduces selling pressure in the market. Combined with Xai’s strong gaming ecosystem, including relationships with Tencent and other major partners, this design becomes particularly important. It not only supports the continued development of the Xai ecosystem but also provides a window of opportunity for community members to see explosive growth and choose to hold after the mainnet launch.
The network rewards of Sentry nodes in the Xai ecosystem are an aspect worth paying attention to. While it is difficult to accurately predict the rewards for each Sentry node, estimates can be made based on market conditions and assumptions. These estimates are based on assumptions such as XAI and esXAI total supply not exceeding 2.5 billion, supply deflation caused by 100% burning of Gas, and 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 interaction not only affects the efficiency of network execution 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 in building a diverse and sustainable blockchain environment.
As the fundamental token of the ecosystem, XAI provides the fuel needed for network execution, while the introduction of esXAI brings more staking opportunities and rewards to participants. This dual-token system not only ensures the effective execution of the network but also encourages community participation and investment.
Therefore, we can anticipate 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 ecosystem 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.
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Tags:
Airdrop
Arbitrum
Layer3 Xai
Scalability
Games