Xen: The New Frontier with a Game-Changer Token

In Focus: The English Edition of the White Paper

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 curious about crypto, 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 principles of decentralization, transparency, counterparty risk resistance, peer-to-peer value exchange, and self-custody. Its unique tokenomics focus 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, 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?

  1. Simplicity: XEN is (will be) based on the ERC20 token standard with a minimum amount of code.

  2. 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.

  3. XEN cryptocurrency is free, as it does not require participants to deposit any funds to start minting their XEN crypto.

  4. XEN starts with zero supply and will only be minted by the participating community.

  5. XEN does not have a maximum cap on the supply and is inflationary in the beginning, becoming disinflationary as adoption increases.

  6. XEN is a digital asset that has no backing from investors or has any intrinsic value. Anyone cannot alter or stop XEN because it is immutable. With its open source code, it is truly trustless through consensus and belongs to the people.

  7. XEN does not have a controlling or management team; it is simply a segment of an immutable code secured by the Blockchain.

  8. XEN is neither a proof of stake nor a proof of work token; however, it is a Proof of Participation (PoP) crypto. Whoever participates in the creation of XEN has full ownership rights through self-custody.

  9. The XEN smart contract uses a fair system of new token distribution. All participants are subject to the same immutable rules secured by the blockchain.

  10. 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 market. 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 has 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 then 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 the days you 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 the 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 the difficulty of Bitcoin mining.

Does XEN have an initial supply?

XEN has no initial coin supply. Supply is generated by all people who participate in the Proof of Participation (POP) protocol through the minting of their own coins.

Why will XEN appreciate in value?

The XEN token’s value is pegged to the difference between the world’s inflation and the 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. In the end, the market forces of all involved parties create value. As more market participants get involved in generating XEN, the total amount of generated XEN drops (disinflation) and is distributed among 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 your 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. The XEN smart contract tracks a Global cRank within the ecosystem and increases it every time someone else joins as a participant and generates their cRank. Your end Reward () is computed by multiplying the difference between your rank and the Global cRank , multiplied by the number of Mint Term days (T), by a time-dependent Reward Amplifier (AMP), and by an Early Adopter Amplification factor (EAA):

Where EAA starts at 10% and decreases in a linear fashion by 0.1% per 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 the total activity of the Proof of Participation protocol. Specifically, the maximum Free Mint Term is capped at 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:

What is the process to mint XEN after the established term (in days)?

You will be able to visit XEN’s 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 XEN within a 24-hour period after the end date; however, XEN rewards will be progressively reduced if you do not claim or mint XEN close to the date of the term you’ve established. The reason for progressive reduction is to avoid bad actors that create ladders of “invisible” claims, and then claim them all at once to crash the value of XEN. The penalty for not claiming or minting XEN is progressive, becomes 99% after 7 days (a Reward Claim Window) and stays at 99% indefinitely thereafter. This incentivizes users to make 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. The XEN staking period can be terminated without penalty at 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 stake’s APY is fixed at the time of the stake, depending on how many days have passed since XEN Genesis.

Here is how the whole process works:

  1. First, claim your crypto rank with Proof of Participation (PoP)

  2. Then, claim or mint your XEN crypto

  3. 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 the total supply of XEN crypto, recording the debt to the original stakeholder. A smart contract will re-mint the original stake in XEN crypto along with an extra 20% reward 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 an ERC20 token, you can do with XEN. Trade it for other crypto tokens or NFTs, tell your friends about it, and 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 maximum liquidity through maximum adoption, so holders of XEN crypto are invited to give it away to as many people as possible.

Technology

Does XEN crypto run on its own blockchain?

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

The cause of it all

The crypto world has come a long way since Timothy May, in 1988, wrote “the 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. 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, violating the true first principles of crypto. Both create 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 will ultimately 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.