Binance's new Launchpool project XAI: The most promising Layer 3 chain game on Arbitrum

On January 3, Binance launched the 43rd project on Launchpool, XAI, while opening the BNB, FDUSD, and TUSD yield pools, with mining starting from January 5, 00:00 (UTC). XAI will be listed on Binance on January 9, 2024, at 10:00 (UTC), and trading pairs XAI/BTC, XAI/USDT, XAI/BNB, XAI/FDUSD, XAI/TUSD, and XAI/TRY will also be opened.

Xai (XAI) is built on Arbitrum, a blockchain network custom-developed to meet the demands of large-scale Web3 gaming, developed by Offchain Labs. What are the characteristics of Xai compared to other networks as a network tailored for blockchain games? How is the gaming ecosystem developing on it? BlockBeats will introduce this in this article.

Technical Features of Xai: Layer3 Solution

XAI utilizes the Arbitrum Nitro technology stack and is a permissionless Orbit chain, while Orbit Chain is a Layer3 launched in June 2023, built on top of Arbitrum Layer2.

For blockchain gaming teams, the high gas fees on Ethereum are a limitation that must be considered for the vitality of the gaming ecosystem, which has also led to the emergence of Layer2 networks tailored for blockchain games, such as Ronin and TreasureDAO. However, while these networks effectively reduce transaction costs within games and enhance player experience, they also face significant opportunity costs, namely losing the large and active ecosystems on networks with broad use cases.

Layer3 may be a promising solution. On June 22, 2023, Offchain Labs released tools for issuing the Arbitrum Orbit Chain. Orbit Chain is a Layer3 built on Arbitrum Layer2, allowing for settlement using one of three Layer2 options, including Arbitrum One, Arbitrum Nova, and Arbitrum Goerli. Users can choose to use Rollup or Anytrust technology, with the distinction that Anytrust uses DAC and does not require submitting transaction data on-chain, making it cheaper but slightly less secure.

The advantages of Orbit Chain include its simple chain issuance process, interoperability with the Arbitrum ecosystem, instant updates from Nitro, and EVM+ compatibility provided by Stylus (supporting Rust, C, and C++ programming, running on WASM virtual machines). Like all chains in the Arbitrum ecosystem, Arbitrum Rollups and Arbitrum Anytrust Orbit chains are built on Nitro as the underlying technology. Users can customize and issue any Orbit Chain without geographical restrictions, but must settle on Arbitrum Layer2; otherwise, they need to contact Offchain Labs or Arbitrum DAO for authorization.

Unlike most "self-managed" Orbit chains, Xai benefits from direct technical support from Offchain Labs. This support is not available to other chains, and Xai is seen as an important part of the strategic gaming plan within the Arbitrum ecosystem.

XAI, esXAI, and Token Economics

Xai has its own custom gas fee token "XAI," which will serve a dual purpose on the Xai blockchain. First, it will act as the designated gas token, facilitating transactions within the network. Additionally, Xai tokens will be rewarded to validating nodes for their role in verifying transactions. Furthermore, Xai tokens will serve as the primary token within the gaming ecosystem, acting as a medium of payment for games and in-game items.

The Xai network utilizes XAI and esXAI (custodial XAI) to maintain the balance of the ecosystem. XAI is fully transferable, while XAI converted to esXAI is non-transferable. The primary use of esXAI is for staking to gain various benefits, such as rewards for Sentry node operators, providing multiple benefits to operators.

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 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.

Users can exchange between XAI and esXAI as needed. Different exchange directions apply different rules. XAI can be exchanged for esXAI at any time without penalties or restrictions. The conversion ratio is always 1:1 (100%). The process of converting esXAI back to XAI includes an unlocking period, the duration of which is chosen by the user. The exchange rate will increase proportionally with the length of the unlocking time. The Xai Foundation may retain up to 50% of the potentially destroyed esXAI to support the network. When esXAI is converted to XAI, all esXAI will automatically be allocated to the yield account, but only up to 50% of its value.

The maximum total supply of XAI and esXAI combined reaches 2.5 billion tokens. The initial distribution of XAI is as follows:

• Team: 20% of the total supply is allocated to the core team and early contributors. This will start unlocking 6 months after the TGE and will unlock over 36 months, totaling 42 months.
• Investors: Early rounds of investors purchased 22.41% of the total supply. This will start unlocking 6 months after the TGE and will unlock over 24 months, totaling 30 months.
• Ecosystem: 2% of the total supply has been designated for market makers. This allocation will unlock immediately at TGE. 5.5% of the total supply has been designated for the ecosystem. This allocation will start unlocking 6 months after the TGE and will unlock over 36 months, totaling 42 months.

Gaming Ecosystem of Xai

Xai focuses on reducing gas costs, enhancing network stability, promoting creative game design, simplifying complex systems, and maximizing the potential of blockchain technology while minimizing user wallet interactions. This not only makes blockchain games more accessible but also provides developers with a platform to truly unleash their creativity.

Unlike some blockchain games that prioritize a large number of low-quality games, Xai supports various game types and mechanics, encouraging developers to focus on providing engaging experiences that attract players, rather than just token incentives. Additionally, complex games and economic systems have been common barriers for blockchain games in acquiring potential users. The Xai Foundation supports simplifying game system settings to ensure players can easily grasp the mechanics and enjoy the fun of gaming.

In terms of wallet experience, Xai has also partnered with Thirdweb to seamlessly integrate wallet management into the backend of the gaming experience.

Currently, Xai has partnered with five game teams. Among them, Final Form is the first game developed by Ex Populus, which will be deployed on the Xai blockchain and published by the Xai Foundation. In "Final Form," players will engage in high-frequency deck building combined with Rogue-Lite mechanics in automated battles. Players will use free limited edition trading cards, temporary raider cards, mutants, and relics to build increasingly powerful battle decks. The best players will dominate automated battles and earn rewards, accelerating the evolution of their limited edition cards from common rarity to legendary rarity, while reducing the global supply as they burn to evolve.

As the supply of cards decreases and rarity increases, card collectors and traders will find their cards becoming more important, attractive, and in demand as the gaming ecosystem adapts. Each set of limited edition cards is created in collaboration with renowned artists, celebrities, and athletes, including Oscar-nominated Calabash and former world heavyweight champion Mike Tyson. Legendary card collectors will join the Vanguard Alliance and be eligible for exclusive rewards.

Team and Partnerships

According to the Xai official website, the Xai ecosystem does not have a central team but is initiated by several key entities, each with different roles. As the project develops, more entities are expected to support the project in various ways.

Xai Foundation

The Xai Foundation acts as the custodian of the blockchain infrastructure, which is the foundation for games developed by game developers deployed on the chain. Additionally, the foundation is responsible for issuing and managing the native token "XAI" of the Xai network.

The responsibilities of the Xai Foundation include formulating the strategic direction of the blockchain network, supporting blockchain games developed by Ex Populus. This ensures the stability and security of the network, enabling a seamless gaming experience; creating and distributing XAI tokens, overseeing token governance, and ensuring a fair and transparent distribution process; furthermore, the Xai Foundation focuses on cultivating a supportive and inclusive community around blockchain gaming. It will allow the Xai community to participate in the governance of the network in phases, ensuring that important decisions are made collectively.

Ex Populus

Ex Populus is a laboratory entity based in the United States and is the first developer to deploy games on the Xai blockchain, responsible for research, development, and innovation in blockchain gaming. Ex Populus is a reputable game development studio led by industry veterans from well-known companies such as Pixar, Ubisoft, Activision, and Blizzard. The company has an outstanding team and is currently developing two highly anticipated games: "Final Form" and "LAMOverse."

Under the guidance of the foundation, Ex Populus serves the ecosystem, handling the development aspect of games and providing players with unique opportunities to own, trade, and monetize in-game assets. Ex Populus also actively promotes its games and engages with the gaming community to foster growth and adoption.

Offchain Labs

Offchain Labs works under the guidance of the Xai Foundation, meaning that the key development team behind the Arbitrum blockchain is the same team that develops and services the Xai blockchain. They are key strategic technical partners of the Xai blockchain project, focusing on the development and ongoing technical support of the Xai blockchain. The development of the Xai blockchain by Offchain Labs aims to address other blockchain issues encountered by Ex Populus when attempting to deploy games.

Additionally, Offchain Labs will provide ongoing marketing support for the Xai network and ecosystem.

Other Core Contributors

Xai has a diverse group of core contributors, and this list will continue to grow as the ecosystem develops. Currently, major contributors include Thirdweb and Paima Studios. Thirdweb specializes in developing custom account abstraction technology and payment systems tailored for games and decentralized applications (dApps) deployed on the Xai platform, while Paima Studios is developing top-tier Web3 games for the Xai blockchain. Many other groups, including game developers, infrastructure providers, and various other types of contributors, will soon be announced and added to this growing list.

On December 29, Xai will distribute the first season of airdrops, with snapshots already taken for participants in the Xai Odyssey Legends and Vanguard, as well as Sentry Node Key holders.