Airdrop is about to start: Is the Arbitrum ecosystem game Layer3 Xai worth a try?

Original Author: Kasou Kazoku

On December 16, 2023, the Arbitrum ecosystem game Layer3 Xai posted a mysterious message on social media: "aidrp soon," which sparked widespread attention in the cryptocurrency community. This brief and cryptic message seems to suggest that Layer3 Xai may soon conduct an airdrop, undoubtedly injecting new vitality into the entire gaming ecosystem. As Xai is about to launch its airdrop, let's take a look back at the project's past and present.

Xai's tweet about the upcoming airdrop

Xai Recently Released Its Tokenomics, Allocation Mechanism Draws Attention

Looking back at Xai's development history, it released its tokenomics on October 26 this year. The total supply of Xai and esXai (staked) reached an astonishing 2.5 billion tokens. More notably, over 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. Meanwhile, 22.4% of the tokens are allocated to investors, 20% to team members, and the remaining 7.5% is used for the development and maintenance of the ecosystem.

On the technical side, XAI showcases its uniqueness. It is a permissionless Orbit chain that utilizes 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.

Additionally, Xai's network allows anyone to participate by operating nodes. This not only provides ordinary users with the opportunity to earn network rewards but also allows them to participate in the governance of the network. This feature reflects Xai's pursuit of decentralization and offers community members 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 technological innovation and ecosystem building, while also proving its position and influence in the cryptocurrency industry.

As community expectations for Xai's airdrop continue to rise, we can foresee new development opportunities for this ecosystem. In the following sections, we will delve deeper into Xai.

Close to L3's Technical Solutions: Analyzing the Foundation Behind XAI and New Developments in Sentry Nodes

A deeper understanding of XAI reveals that the financial support and technical architecture behind it are key to its success. Like many blockchain projects, XAI is supported by a foundation. Xai is backed 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' over $120 million in fundraising, indicates that the XAI project has a solid economic foundation.

Now, there are some new developments regarding the Sentry nodes of XAI Games. As an L3 blockchain, XAI Games is designed to allow different operators to run nodes on various platforms, whether in the cloud, on laptops, or desktops, ensuring the integrity and security of the network. This flexibility provides a new opportunity for a wide range of users to participate in blockchain operations.

Particularly noteworthy 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, starting at 0.13E, while the price for the 9th tier has now reached 0.4E. Tying the price of Sentry nodes to Ether may be a strategy to attract investors, but it also brings considerations of market price fluctuations.

In summary, the financial support behind the Xai Foundation and its innovative sales strategy for Sentry nodes together form the two pillars of the XAI project. This not only provides a solid financial foundation for XAI's future development but also offers participants new technological and economic opportunities. In the next section, we will explore Xai's token economic system and its potential impact on the entire ecosystem.

Understanding XAI and esXAI: Insights into the Project's Core Economic Mechanism Design and Development Dynamics

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; 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 has clear allocations among different groups. Of this, 20% is allocated to the core team and early contributors, which will begin unlocking 6 months after the token generation event (TGE) and will gradually unlock completely over the following 36 months. Additionally, 22.41% of the supply is purchased by early investors, unlocking 6 months after TGE and completing within 24 months. For ecosystem allocation, 2% of the supply is designated for market makers and is unlocked immediately at TGE; 5.5% of the supply is for ecosystem development, unlocking 6 months after TGE and completing within 36 months.

Xai's testnet has surpassed 60 million transactions

XAI can also be exchanged for esXAI, a special type of token. esXAI differs from XAI as it is non-tradable and is primarily used for staking within the Xai ecosystem, providing various benefits to stakers. This includes rewards for Sentry node operators and a range of privileges and benefits. The staking mechanism for esXAI allows node operators to freely adjust their staked esXai across three different accounts:

Yield Account: Node operators staking esXai in this account can earn more esXai rewards.

Culture Account: By staking esXai, node operators can participate in exclusive events and NFTs related to games launched on the Xai blockchain.

Governance Account: Node operators can gain governance rights in the DAO through staking, including the right to propose on DAO/foundation funds.

The exchange rules between Xai and esXai are bidirectional, allowing users to choose based on their needs. The process of exchanging Xai for esXai is free and incurs no penalties, with a constant ratio of 1:1. However, exchanging esXai back to Xai involves a lock-up period that users can determine themselves. 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 significant implications for the Xai ecosystem. First, it brings a certain degree of deflationary pressure to Xai, as all gas paid within the Xai ecosystem will be burned. Secondly, the esXai emissions for Sentry nodes depend on the current circulating supply of Xai and esXai. This dynamic emission rate design aims to automatically adjust based on changes in total supply, ensuring flexibility and adaptability in supply.

Moreover, the exchange mechanism between Xai and esXai essentially reduces market sell-off pressure. Combined with Xai's robust gaming ecosystem, including partnerships with major players like Tencent, this design is particularly important. It not only supports the ongoing development of the Xai ecosystem but also provides community members with a window of opportunity to witness explosive growth in the ecosystem and choose to hold.

The network rewards for Sentry nodes within the Xai ecosystem are an area worth paying attention to. While accurately predicting the rewards for each Sentry node is challenging, estimates can be made based on market conditions and assumptions regarding the operation of Sentry nodes. These estimates are based on assumptions that the total supply of XAI and esXAI will not exceed 2.5 billion, that 100% of gas burned will lead to supply deflation, and that the Xai Foundation will not sell more than 50,000 Sentry keys.

The economic model of XAI and esXAI forms the core of the Xai ecosystem, and their interaction not only affects the operational efficiency of the network but also has profound implications for the stability and sustainability of the entire ecosystem.

The Future of Xai's Development is Unpredictable, but Its Innovative Attempts Are Worth Acknowledging

As the Xai ecosystem develops and matures, the design of the XAI and esXAI tokens demonstrates its ambition to build a diverse and sustainable blockchain environment.

As the fundamental token of the ecosystem, XAI provides the fuel necessary for network operations, while the introduction of esXAI brings more staking opportunities and rewards for participants. This dual-token system not only ensures the effective operation of the network but also encourages community participation and investment.

With 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 Xai with a stable and vibrant ecological environment in the future. This will not only promote development within the Xai ecosystem but may also bring new innovations and growth momentum to the entire blockchain industry.