Arbitrum’s ecological game Layer 3Xai revealed airdrop news on the X platform. Over half of the token economy supply is provided to the community and developers. Before the airdrop, this article will explore the past development history of Layer3 Xai.
(Background: Arbitrum’s crash event reveals that “Bitcoin L2 and Ethereum L2” have taken different paths.)
Index of this article:
Xai recently released its token economics, and the distribution mechanism has attracted attention.
A closer look at the technology solutions near L3: analyzing the foundation and Sentry node new trends behind 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, Arbitrum’s ecological game Layer3 Xai released a mysterious message on social platforms: “ai_dr_p soon,” which drew widespread attention from the cryptocurrency community. This short and implicit message seems to imply that Layer3 Xai may be preparing for 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.
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Looking back at the development history of Xai, it released its token economics on October 26 of this year. The total supply of Xai and esXai (staking) tokens reached an astonishing 2.5 billion. What is worth noting is that more than half of the supply, 50.1%, is allocated to the community, Sentry node operators, and the Data Availability Committee (DAC), demonstrating Xai’s emphasis on 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 demonstrates 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 the network’s scalability, creating more possibilities for game developers and players.
Furthermore, Xai’s network supports anyone to participate through operating nodes. This not only provides ordinary users with the opportunity to receive 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 opportunities for participation and contribution.
It is worth mentioning that Xai is developed by Offchain Labs using Arbitrum technology. This collaboration demonstrates Xai’s potential in technological innovation and ecosystem construction, as well as its position and influence in the cryptocurrency industry.
With increasing expectations for the Xai airdrop from the community, we can anticipate new development opportunities for this ecosystem. In the following sections, we will delve deeper into Xai.
To understand XAI, we need to explore the financial support and technical architecture 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, along with some undisclosed funds. This funding scale, especially compared to Offchain Labs’ fundraising of over $120 million, demonstrates a solid financial foundation for the XAI project.
There are some new developments regarding 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-based, laptops, or desktop computers, to ensure the network’s integrity and security. This flexibility provides new opportunities for widespread users to participate in blockchain operations.
Of particular interest is the sales method for Sentry nodes. XAI Games plans to sell 50,000 node key NFTs through a Dutch auction. This sales method allows the price to change over time, with an initial price of 0.13E, and the price reaching 0.4E on the 9th layer. Linking the price of Sentry nodes to Ether may be a strategy to attract investors, but it also brings considerations of market price fluctuations.
In conclusion, the financial support behind the Xai Foundation and the innovative sales strategy for 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 system 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 wide and significant utility. It is fully transferable and serves as the gas fee token within 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 6 months after the token generation event (TGE) and gradually completes the unlock process within the following 36 months. Additionally, 22.41% of the supply is purchased by early investors, which starts unlocking 6 months after the TGE and completes the unlock process within 24 months. In terms of ecosystem allocation, 2% of the supply is designated for market makers and unlocked immediately after the TGE; 5.5% of the supply is used for ecosystem development, which starts unlocking 6 months after the TGE and completes the unlock process 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 within the Xai ecosystem, providing stakers with various benefits. 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:
1. Yield Account: Node operators staking esXAI in this account can earn more esXAI rewards.
2. Culture Account: By staking esXAI, node operators can participate in exclusive game-related activities and NFTs on the Xai blockchain.
3. Governance Account: Node operators can acquire governance rights through staking, including proposing the use of DAO/Foundation funds.
The exchange rules between Xai and esXAI are bidirectional, allowing users to choose according to 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 can be determined by the user. The exchange ratio varies with the length of the lock-up period, with longer lock-up periods offering 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 within the Xai ecosystem is burned. Secondly, the emission of esXAI by 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 of Xai and esXAI inherently reduces market selling pressure. Combined with Xai’s strong gaming ecosystem, including partnerships with Tencent and other major partners, this design is particularly important. It not only provides support for the continued development of the Xai ecosystem but also offers community members a time window to witness explosive ecosystem growth and choose to hold.
The network rewards for Sentry nodes in the Xai ecosystem are an aspect worth noting. Although it is difficult to accurately predict the rewards for each Sentry node, estimations can be made based on market conditions and assumptions. These estimations 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 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 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 required for network execution, while the introduction of esXAI brings more staking opportunities and rewards for participants. This dual-token system not only ensures the efficient execution of the network but also encourages community participation and investment.
Through this, 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.
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Tags:
Airdrop
Arbitrum
Layer3 Xai
Scalability
Games