Research report on the XEN ecosystem

What is the mission of XEN?

XEN aims to become a community-building crypto asset that connects like-minded people. Whether 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. It follows the Blockchain Principles of decentralization, transparency, counterparty risk resistance, peer-to-peer value exchange, and self-custody. Its unique tokenomics focuses on mass market adoption with the lowest barrier to entry compared to the rest of the coins on the market today.

What problem does XEN solve?

Today’s crypto world exists on a very bipolar plane. The well-known cryptocurrencies are overbought (pumped) and 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.

What makes XEN unique?

• Simplicity: XEN is based on the ERC20 token standard with minimal code. No pre-minting, hidden doors, admin keys, or origin (OA) wallets exist. 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 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; it is inflationary initially and becomes disinflationary as adoption increases.

• XEN is a digital asset with no investors' backing or intrinsic value.

• XEN is immutable and cannot 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 immutable code secured by the blockchain.

• XEN is neither a proof of stake nor a proof of work token; however, it is a Proof of Participation (PoP) crypto. Anyone who 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 the blockchain.

• XEN continuously manages token rewards through minting-based reward time locks and the total number of participants.

• Generally, all cryptocurrencies 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 XEN tokens by connecting their compatible crypto wallet (such as Metamask, etc).

What is the formula to generate rewards for the participants?

To generate rewards for the participants, the XEN tokenomics does not involve locking or staking any assets; your wallet is the only requirement. The process of generating XEN is based on several variables. To receive XEN, you need to connect your wallet to the XEN smart contract and specify the duration (in days) for which you are willing to wait. The smart contract will then generate an XEN rank (cRANK) based on the number of people who interacted with the contract before you. The final formula to receive (mint) XEN is the LOG base 2 of the current Global XEN rank minus your rank, multiplied by the number of days you specified during the initial interaction with the smart contract and by two amplification factors, AMP and EAA.

If XEN has no cap, does it mean it has no value?

XEN doesn't have a cap. However, as more people join and participate in minting, it will become harder to generate (or mint) more XEN due to a naturally sloping adoption curve, which is logarithmic in nature. This will make XEN tokenomics disinflationary. Each participant makes it harder for new participants to receive rewards unless new participants extend the amount of time to get their rewards. This process is similar to the difficulty of mining Bitcoin.

Does XEN have an initial supply?

XEN does not have an initial coin supply. The supply is generated by all participants in the Proof of Participation (POP) protocol through minting their own coins.

Why will XEN appreciate in value?

The value of the XEN token is tied to the contrast between global inflation and the built-in distribution of the tokens. In essence, XEN's value is connected to its difficulty in being created, similar to Bitcoin. Essentially, market dynamics determine its value. As more participants join in creating XEN, the total amount of XEN generated decreases (disinflation) and is shared among participants, making XEN more rare and valuable. In the future, the only way to create more XEN will be to increase the time one must wait to receive the newly created tokens.

What is the process of minting XEN after the established term (in days)?

Generally, you should be able to claim or mint within a 24-hour period after the end date. However, the rewards for XEN will be gradually reduced if you do not claim or mint XEN close to the established term date. This progressive reduction is in place to prevent bad actors from creating "invisible" claims and then claiming all at once to devalue XEN. The penalty for not claiming or minting XEN is progressive, reaching 99% after 7 days (a Reward Claim Window), and remains at 99% indefinitely thereafter. This approach encourages users to make reward claims even after the window is over and helps to clean up expensive blockchain storage space.

Staking XEN

The staking period for XEN is limited to 1 to 1,000 days. You can terminate the staking period anytime within the agreed term without penalties. Still, if staking is terminated before the period ends, APY rewards will not be prorated or paid.

You can stake XEN for any number of days between 1 and 1,000 and receive APY rewards. The APY rewards will start at 20% on XEN Genesis and decrease by 1 percentage point every 90 days until it reaches 2%, which will stay at 2% indefinitely. The APY for each stake is fixed at the time of the stake, depending on how many days have passed since XEN Genesis.

Can interested parties buy or sell XEN crypto?

Interested parties can buy or sell XEN crypto using popular decentralized exchanges (DEXes) like Uniswap or Sushiswap.

What can I do with XEN crypto?

You can do anything with XEN that you can do with an ERC20 token. This includes trading it for other crypto tokens or NFTs, sharing it with friends, and participating in the Uniswap ecosystem by creating limit orders or liquidity pools for automatic trading of your XEN crypto. Essentially, XEN aims to achieve maximum liquidity through widespread adoption, so holders of XEN are encouraged to distribute it to as many people as possible.

Technology

Does XEN crypto run on its blockchain?

No, XEN is deployed on multiple networks, with the Ethereum mainnet being the second-largest blockchain network in the world, with a peak market cap of $570 billion. XEN is open source and modeled as an ERC-20 token (fungible token standard) on Ethereum.

The cause of it all

The crypto world has developed significantly since Timothy May wrote "The Crypto Anarchist Manifesto" in 1988. In the manifesto, he introduced the basic principles of crypto-anarchism, advocating for encrypted exchanges that ensure total anonymity, freedom of speech, and freedom to trade (LINK).

In 2008, Satoshi Nakamoto introduced the concept of Bitcoin, a peer-to-peer electronic cash system. This was the first system that allowed direct peer-to-peer electronic cash transactions without involving financial institutions (LINK).

However, similar to tech giants' centralization of the internet, we observe a trend within Distributed Ledger Technologies (DLTs) where human tendencies toward corruption and deceit persist. Governments are considering the introduction of their versions of digital currencies, known as Central Bank Digital Currencies (CBDCs). Additionally, while claiming to support crypto, corporations are using various tactics to deceive users and encourage them to relinquish their private keys, thereby violating the fundamental principles of crypto. Both phenomena create innovation filter bubbles.

The L1 narrative has emerged, with multiple systems competing to become the most fundamental and interoperable. While maximalists hold strong convictions, there is no consensus on which system will ultimately prevail. Consequently, revisiting the basic principles of crypto becomes inevitable.

XEN embraces a back-to-basics approach to consensus-building systems and is open-minded about innovation. True innovation typically arises from the people, for the people, based on first principles.

*Note: You can read more about some of the project's own terms and calculation formulas here https://faircrypto.org/xencryptolp.pdf.

Conclude

With in-depth research, we found that XEN cryptocurrency is one of the potential projects and has its core values. With a fair launch, XEN cryptocurrency is a public currency. Unlike many other currencies born from nothing, anyone can own XEN but ensure clear protocol principles. With these strengths, XEN cryptocurrency deserves a higher position in the market.