Airdrop is about to start: Is Arbitrum ecological game Layer3 Xai worth playing?

Original Title: "Airdrop is about to start: Is it worth playing Layer3 Xai, a game in the Arbitrum ecosystem?"

Original Author: Kasou Kazoku

On December 16th, 2023, Layer3 Xai, an ecosystem game on Arbitrum, posted a mysterious message on social media: "ai_dr_p soon". This short and subtle message has attracted widespread attention from the cryptocurrency community. It seems to imply that Layer3 Xai may be about to conduct an airdrop, which undoubtedly injects new vitality into the entire gaming ecosystem. As Xai is about to launch its airdrop, let's take a look back at the history of this project.

Xai's tweet about the upcoming airdrop

Xai recently released its token economics, and the distribution mechanism has attracted attention.

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) reached an astonishing 2.5 billion. What's more noteworthy is that over half of the supply, 50.1%, was 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 were allocated to investors, 20% to team members, and the remaining 7.5% was used for ecosystem development and maintenance.

At the technical level, XAI demonstrates its uniqueness. It is an unlicensed Orbit chain that adopts the Arbitrum Nitro technology stack, aiming to bring a game-centric third-layer solution to the gaming industry. This technology not only improves transaction efficiency but also enhances network scalability, creating more possibilities for game developers and players.

Dapps in the Arbitrum on-chain ecosystem

In addition, Xai's network supports anyone to participate through operating nodes. This not only provides ordinary users with the opportunity to obtain network rewards, but also allows them to participate in the governance of the network. This feature reflects Xai's pursuit of decentralization and provides community members with opportunities for substantive participation and contribution.

It is worth mentioning that Xai is developed by Offchain Labs using Arbitrum technology. This collaboration demonstrates the potential of Xai in technology innovation and ecosystem construction, as well as its position and influence in the cryptocurrency industry.

With the increasing anticipation of Xai's airdrop in the community, we can foresee new development opportunities for this ecosystem. In the following section, we will delve into Xai.

Technology solutions near L3: An analysis of the foundation behind XAI and the new developments of Sentry nodes

To gain a deeper understanding of XAI, we will find that its financial support and technical architecture are the key to its success. Like many blockchain projects, XAI is also supported by a foundation. Xai is supported by the Ex Populus Foundation, which raised $12 million two years ago, plus some undisclosed funds. This funding size, especially compared to Offchain Labs' fundraising of over $120 million, indicates that the XAI project has a solid economic foundation.

So, there are some new developments for XAI Games' Sentry nodes. As an L3 blockchain, XAI Games' design allows different operators to run nodes on various platforms, whether it's on the cloud, laptop, or desktop, ensuring the integrity and security of the network. This flexibility provides new opportunities for 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 prices to change over time, with a starting price of 0.13E and the current price at the 9th level reaching 0.4E. Tying the price of Sentry nodes to Ether may be a strategy to attract investors, but it also brings considerations for market price fluctuations.

In short, the financial support behind the Xai Foundation and its innovative sales strategy for Sentry nodes are the two pillars of the XAI project. This not only provides a solid financial foundation for the future development of XAI, but also offers new technological and economic opportunities for participants. In the following content, we will explore the token economy of Xai and its potential impact on the entire ecosystem.

Understanding XAI and esXAI: Understanding the Core Economic Mechanism Design and Development Dynamics of the Project

XAI is not only the recording token of the Xai blockchain, but also the cornerstone of its ecosystem. Similar to traditional L1 and L2 tokens, XAI has a wide and important utility, and it is fully transferable, serving 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.

XAI's total supply is clearly distributed among different groups. Among them, 20% is allocated to the core team and early contributors, which will start unlocking 6 months after token generation event (TGE) and gradually fully unlock in the following 36 months. In addition, 22.41% of the supply is purchased by early investors, which will start unlocking 6 months after TGE and complete unlocking within 24 months. In terms of ecosystem allocation, 2% of the supply is designated for market makers and immediately unlocked at TGE; 5.5% of the supply is used for ecosystem development, which will start unlocking 6 months after TGE and complete unlocking within 36 months.

Xai testnet has exceeded 60 million transactions

XAI can also be exchanged for esXAI, which is a special type of token. Unlike XAI, esXAI is non-tradable and is primarily used for staking within the Xai ecosystem, providing stakers with various benefits. This includes rewarding the operators of Sentry nodes and providing them with a range of privileges and benefits. The staking mechanism of esXAI allows node operators to freely adjust their staked esXAI between three different accounts.

Yield Account: Node operators who pledge esXai in this account can earn more esXai profits.

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

Governance Account: Node operators can obtain governance rights of DAO by pledging, including the right to propose 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 exchanging Xai for esXai is free and does not require any penalty, and the ratio is always 1:1. However, exchanging esXai back to Xai involves an unlocking period, which can be determined by the user. The exchange ratio varies with the length of the lock-up 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 will be destroyed. Secondly, the esXai emissions of Sentry nodes depend on the current circulating supply of Xai and esXai. This dynamic emission rate design aims to automatically adjust according to changes in the total supply, ensuring supply flexibility and adaptability.

In addition, the exchange mechanism of Xai and esXai essentially reduces the selling pressure in the market. Combined with Xai's strong gaming ecosystem, including relationships with large partners such as Tencent, this design is particularly important. It not only provides support for the sustainable development of the Xai ecosystem, but also provides a time window for community members to see the explosive development of the ecosystem and choose to hold after the mainnet goes live.

The network rewards for Sentry nodes in the Xai ecosystem are an aspect worth paying attention to. Although it is difficult to accurately predict the rewards for each Sentry node, it is possible to estimate the different reward scenarios that running a Sentry node may bring based on market conditions and assumptions. These estimates are based on the assumption that the total supply of XAI and esXAI will not exceed 2.5 billion, the supply will be deflated due to 100% burning of Gas, and the Xai Foundation will not sell more than 50,000 Sentry keys.

XAI and esXAI's economic models constitute the core of the Xai ecosystem. Their interaction not only affects the network's operational efficiency but also has a profound impact on the stability and sustainability of the entire ecosystem.

The future development of Xai is unpredictable, but its innovative attempts are worthy of recognition.

With the development and gradual maturity of the Xai ecosystem, the design of XAI and esXAI tokens demonstrates their ambition in building a diverse and sustainable blockchain environment.

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