9 hours burned over 1150 ETH, is XEN the new model coin?
Time is everyone's "mining machine," and cost is the "Gas fee."Written by: Cookie, BlockBeats
It has been just 15 hours since XEN was "born" on Ethereum. In this 15 hours, it has caused Ethereum's Gas to soar above 100 Gwei, with over 178,000 addresses participating in the minting of "XEN," and more than 1,150 ETH burned in the process. What exactly is "XEN"? This article will take you to explore.
What is XEN?
XEN aims to achieve a function similar to Bitcoin—becoming a universal cryptocurrency. The idea of a second Bitcoin is already a common topic; what reasons does XEN provide?
The first reason is to break free from centralized entities. XEN's founder, Jack Levin, claims to be an early Google engineer and a Bitcoin OG (Note: actual identity is questionable). Jack Levin is quite dissatisfied with the centralized entities between crypto users and the blockchain world, such as Luna, Voyager, and various CEXs, believing that these centralized entities are like the California Hotel—users trust these entities, relinquish their private keys to deposit funds, but these funds are mismanaged without regulation, ultimately becoming unrecoverable. He hopes to return to the original intention of peer-to-peer value exchange in blockchain.
The second reason is to lower the entry barrier. Jack Levin is also unhappy with the high concentration of Bitcoin chips and the high barriers to mining. Therefore, for XEN, anyone can easily mine; time is everyone's mining machine, and the cost is the Gas fee.
How to Obtain XEN?
Minting on the XEN official website is equivalent to participating in mining. The formula that determines each address's XEN share is: AMP * t * log2(dR) * (1 + EAA(cRu))
AMP
This coefficient starts at 3000 and decreases by 1 daily, remaining constant when it reaches 1.
EEA
This coefficient is set to reward early participants. The initial value is 10%, and it decreases linearly by 0.1% for every increase of 100,000 in cRank.
cRank
Minting on the XEN official website will yield a cRank (Crypto Rank). cRank indicates the order in which the address participated in XEN minting; for example, a cRank of 5000 means it is the 5000th miner of XEN, with 4999 miners having participated before.
In the formula, dR refers to the difference between the total cRank and the cRank owned by oneself. In other words, the smaller the cRank value owned, the earlier the minting, and the larger the XEN share that can be obtained. Later miners can only obtain larger shares through longer lock-up periods.
Lock-up Period
Corresponding to t in the formula. The longer the lock-up period, the larger the XEN share that can be obtained. When minting XEN, it will prompt the need to set a lock-up period (mintTerm), with the shortest currently set at 1 day and the longest at 360 days. As the number of users increases, the maximum lock-up period will be adjusted according to the formula, up to a limit of 550 days.
Rewards and Penalties
Rewards
XEN can be staked, with the APY decreasing by 1 percentage point every 90 days, starting at an initial APY of 20%, which remains unchanged when it drops to 2%.
The staking period can be selected within a range of 1-1000 days; once selected, the APY remains unchanged. Users can cancel their stake and retrieve all staked shares at any time, but unstaking before the end of the staking period will not yield staking rewards. In other words, the earlier the staking is done and the longer the selected staking period, the longer one can enjoy a higher APY.
Penalties
After the lock-up period ends, XEN should be claimed as soon as possible; otherwise, the share will be reduced:
The later you claim XEN, the greater the loss. The penalty rate after 7 days has currently been modified to 99%.
Conclusion
From the expressions in the white paper, XEN positions itself as a new experiment to return to the original intention of blockchain and lower the entry barriers. Your time is your mining machine, and the XEN flowing on DEX is like trading our time.
Will this experiment succeed? Time will unlock XEN and provide us with the answer.
