XEN - CryptoCurrency For the masses
General
What is the mission of XEN?
XEN aims to become a community building crypto asset that connects like
minded people together. If you are a seasoned OG or simply Crypto curious,
XEN has the lowest barrier to entry through its unique tokenomics.
Fair Crypto Foundation is designing XEN as a universal cryptocurrency to
achieve the original mission of Blockchain, following the Blockchain Tenets of
decentralization, transparency, counterparty risk resistance, peer-to-peer
value exchange and self-custody. Its unique tokenomics focuses on the mass
market adoption with the lowest barrier to entry compared to the rest of
coins on the market today.
What problem does XEN solve?
Todayβs crypto world exists on a very bipolar plane, namely, the well known
cryptocurrencies are overbought (pumped) and subsequently sold off
(dumped). The unknown cryptocurrencies are often left undiscovered for a
long time by general investors while suffering from pre-mining and whale
accumulation by the founding teams. XEN aims to solve both problems
through a fair launch.
Tokenomics and Philosophy
What makes XEN unique?
Simplicity - XEN is (will be) based on the ERC20 token standard with a
minimum amount of code. There are no pre-minting, hidden doors, admin
keys, or origin (OA) wallets. All XEN ecosystem participants mint their own
coins using their own ethereum compatible wallets.
XEN cryptocurrency is Free as it does not require participants to deposit any
funds to start minting their XEN crypto.
XEN starts with zero supply and will only be minted by the participating
community.
XEN does not have a maximum cap on the supply, is inflationary in the
beginning, becoming disinflationary as adoption increases.
XEN is a digital asset which has no backing by investors or starts with any
intrinsic value.
XEN is immutable, and can not be changed or stopped by anyone. With its
open source code it is truly trustless through consensus and belongs to the
people.
XEN does not have a controlling or management team, it is simply a segment
of an immutable code secured by the Blockchain.
XEN is neither a proof of stake or proof of work token, however it is a Proof of
Participation (PoP) crypto. Whoever participates in XEN creation has full
rights of ownership through self custody.
XEN smart contract uses a fair system of new token distribution. All
participants are subject to the same immutable rules secured by Blockchain.
XEN continuously manages token rewards through minting based reward
time locks and the total number of participants.
Generally, all crypto currency must be purchased or exchanged with other
cryptocurrencies on the open markets. XEN does not require purchasing as
anyone on the Ethereum network can mint their own XEN tokens by
connecting their compatible crypto wallet (such as Metamask, etc).
What is the formula to generate rewards for the
participants?
XEN tokenomics have no locking or staking of any assets, only your wallet is
required. The process to generate XEN is based on several variables. First, your
intention to receive XEN must be initialized by connecting your wallet to the
XEN smart contract, you will be asked how long you are willing to wait (in
days) to receive XEN. The smart contract will generate and provide a XEN rank
(cRANK), which is based on how many people interacted with the contract
before you. The final formula to receive (mint) XEN is the LOG base2 of the
current Global XEN rank minus your rank, multiplied by days you have
specified during the first interaction with the smart contract and by two
amplification factors, AMP and EAA, detailed below.
If XEN has no cap, does it mean it has no value?
XEN has no cap, however as more and more people join and participate in
minting, it will be harder to generate (or mint) more XEN due to naturally
sloping adoption curve which is logarithmic in nature. This will make XEN
tokenomics disinflationary in nature.
Each participant makes it harder for new participants to receive rewards,
unless new participants extend the amount of time to get their rewards. This
is similar to Bitcoin mining difficulty.
Does XEN have an initial supply?
XEN has no initial coin supply. Supply is generated by all people that
participate in the Proof of Participation (POP) protocol through minting of
their own coins.
Why will XEN appreciate in value?
XEN tokenβs value is pegged to the difference between worldβs inflation vs
built-in distribution of the tokens. In short, the value of XEN is linked to its
difficulty to be minted, which is very similar to Bitcoin. Ultimately, the value is
created by the market forces of all participating parties. As more market
participants get involved in generating XEN, the total amount of generated
XEN drops (disinflation) and is distributed between participants making XEN
more scarce and valuable. The only way to mint more XEN in the future, will
be by extending the time one has to wait to receive the mint
Is there a way to increase rewards?
XEN rewards are loosely based on game theory with several variables that
influence the reward outcome. To mint new XEN coins, one must generate
their Crypto Rank (cRank).
Your cRank is a natural number, representing the relative standing across the
XEN ecosystem. For example, a cRank of 5,000 represents the fact that 4,999
people before you have decided to mint XEN for themselves and have
submitted their claimRank transactions before you did. XEN smart contract
tracks a Global cRank within the ecosystem and increases every time
someone else joins as a participant and generates their cRank.
Your end Reward ( ) is computed by multiplying the difference between your
rank against the Global cRank , multiplied by the number of Mint Term
days (T), by time-dependent Reward Amplifier (AMP) and by an Early Adopter
Amplification factor (EAA):
,
where
,
decreasing in a linear fashion from 3,000 by 1 every day, until it reaches 1 and stays
equal 1 thereafter ( is timestamp of claimRank transaction, and is Genesis
timestamp, both - in seconds), and
,
ππ
πππ πππΆ
ππ = ππππΈ(πππΆ β πππ) * π * π°πΌπΏ(πππΆ) * (π· + π΄π°π°(πππ))
π°πΌπΏ(πππΆ) = πππ‘(πΉ, πΆπΆπΆ β β
πππΆ β πππΆ
πΉπΌπΆπΆ * πΈπΊ
β, π·)
πππΆ πππΆ
π΄π°π°(πππ) = πππ‘(πΆ . π· β πΆ . πΆπΆπ· * βπππ /π·πΆπΆ, πΆπΆπΆβ, πΆ)
where EAA starts from 10% and decreases in a linear fashion by 0.1% per each 100,000
increase in Global Rank.
Composition of end Reward is shown on the diagram below.
So in order to increase your rewards, one must indicate the maximum
number of days they are willing to wait for their rewards. Likewise, inviting
new people to join the network will create more rewards for all of the
participants (including the invitees).
Term limits
Term limits (in days), are set to follow total activity of Proof of Participation
protocol. Specifically, the maximum Free Mint Term is capped to 100 days
until the protocol registers more than 5,000 unique participant addresses as
tracked by Global Rank. The term will start increasing logarithmically as more
participants join the protocol, using the following formula:
πππππΌππππππππ»ππππ = { 100, if cRG β€ 5000
100 + log2(cRG) * 15, if cRG > 5000
as shown in the chart below:
What is the process to mint XEN after the established term (in days)?
You will be able to visit XENβs web3 web panel where you should be able to
check how many days are left before you can claim / mint XEN. Generally,
you should be able to claim / mint within 24 hour period after the end date,
however XEN rewards will be progressively reduced if you do not claim / mint
XEN close to the date of the term youβve established. The reason for
progressive reduction is to avoid bad actors that create ladders of βinvisibleβ
claims, and then claim all at once to crash the value of XEN. The penalty for
not claiming/minting XEN is progressive, becomes 99% after 7 days (a Reward
Claim Window) and stays at 99% indefinitely thereafter. This incentivizes users
to do Reward Claims even if the window is over and cleans up expensive
blockchain storage space.
Staking XEN
The staking period is limited to the following range: 1 to 1,000 days.
XEN staking period can be terminated without penalties any time within the
agreed term; however the APY rewards will not be prorated or paid if staking
is terminated before the staking period is over.
You will be able to stake XEN for any number of days between 1 and 1,000, and
receive APY rewards, which will start at 20% on XEN Genesis and will
decrease by 1 percentage point every 90 days thereafter until it reaches 2%,
whereupon it will stay at 2% indefinitely. Each stakeβs APY is fixed at the time
Stake start (days since Genesis) APY, %
Here is how the whole process works:
β’ First, claim your CryptoRank with Proof of Participation (PoP)
β’ Then, claim/mint your XEN crypto
β’ After that, stake XEN for APY rewards.
So, if you are staking 100,000 XEN for 365 days within the first 90 days since
XEN Genesis, you will be able to claim 120,000 XEN after this period. The stake
reward amount is based on non-compounding APY and will be calculated
using this formula:
Internally, the smart contract will burn staked XEN to reduce Total Supply of
XEN crypto, recording the debt to the original stakeholder. Smart Contract
will re-mint the original stake XEN crypto together with extra 20% rewards as
newly minted XEN.
Can interested parties buy or sell XEN crypto?
Anyone can buy XEN tokens by using any number of popular distributed
exchanges (DEXes), such as Uniswap or Sushiswap. Selling or trading XEN
tokens will be possible on the same exchanges.
What can I do with XEN crypto?
Anything you can do with ERC20 token, you can do with XEN. Trade it for
other crypto tokens or NFTs, tell your friends about it, play with the Uniswap
ecosystem by creating Limit orders or Liquidity Pools to automatically trade
your XEN crypto. At the end of the day, XEN strives to achieve the maximum
liquidity though maximum adoption, so holders of XEN crypto are invited to
give it away to as many people as possible.
The cause of it all
The crypto world has come a long way since Timothy May in 1988 wrote βthe
Crypto Anarchist Manifesto, where he introduced the basic principles of
crypto-anarchism, encrypted exchanges ensuring total anonymity, total
freedom of speech and total freedom to trade (LINK).
In 2008 Satoshi Nakamoto wrote Bitcoin: A peer-to-Peer electronic Cash
System, and for the first time introduced a system that would allow a pure
peer-to-peer version of electronic cash to be sent directly from one party to
another without going through a financial institution (LINK).
But just like the internet has clustered into centralization by tech giants, we
can see the trend within DLTs not escaping human nature of corruption and
deceit. We see governments wanting to introduce their own versions, so
called CBDCs. We see corporations claiming to be pro crypto but using every
way possible to lure you into giving up your keys, and in doing so violating the
true first-principles of crypto. Both create filter bubbles of innovation.
The L1 narrative emerged where multiple systems are competing to become
the most fundamental and interoperable. Although there are local maximalist
convictions - there is no widespread consensus as to which system that
ultimately will prevail. And as long as that is the case the necessity to go back
to the roots of first principles is inevitable.
XEN goes back to the roots of consensus making systems and takes a carte
blanche approach to innovation.
Pure innovation tends to always come from the people - for the people. Based
on first principles.