As we all know, the XAI project has received strong technical support from the ARB development team under Offchain Labs. This not only ensures that the technical future of the XAI chain continues to be bright, but also provides an excellent experience for the game ecology on XAI. In addition, the successful deployment of Sentry nodes also proves that with the joint efforts of the community, the XAI chain has achieved an impressive level of decentralization. On such a strong foundation, how can the XAI ecosystem continue to develop through a healthy mechanism? Here, the staking mechanism plays a key role. Currently, the official gitbook is gradually updating the documentation on the staking mechanism. This article aims to provide an in-depth analysis of the staking mechanism based on published documents and observations of the actual progress of the project. Given that the staking mechanism itself is constantly evolving, this article will be continuously updated.
1. The design of the pledge mechanism is inspired by the pledge model of TIA (Celestia)
XAI’s official Twitter stated,$XAI The staking inspiration comes from$TIA , so what is the current situation of TIA (Celestia)’s staking model?
💥 About TIA (Celestia) staking
Celestia Network, a proof-of-stake (PoS) blockchain based on the Cosmos SDK. By separating the application layer and the consensus layer, Celestia allows transactions to be executed independently while ensuring that the data for these transactions is available and verifiable by anyone. This design not only promotes specialization, flexibility, and efficiency, but also drives the development of a decentralized ecosystem.
Users can participate in the security of the network by staking TIA tokens, which not only includes voting and governance of the network, but also allows users to earn income by choosing a validator or becoming a validator themselves.
There are multiple ways for users to participate in TIA staking, including lending tokens to a custody provider or through a DeFi lending protocol, running their own verification node, or delegating tokens to a validator of their choice. When choosing a validator, users should consider multiple factors, including the delegation rate, number of users, the validator's own pledge amount, current status, and network share.
TIA’s staking offers an attractive annualized rate of return (APR) and potential short-term equity, making investors optimistic about the long-term positive trajectory of the Celestia platform.
TIA's staking model not only deepens users' participation in network governance and revenue acquisition, but also reflects the development trend of the cryptocurrency industry towards a higher degree of decentralization and user participation. Through its excellent technical support and flexible staking scheme, Celestia has demonstrated the prototype of the future of blockchain technology - a more open, transparent and inclusive financial ecosystem, representing the combination of cutting-edge technology and innovative spirit, leading the industry towards Moving towards a more brilliant tomorrow.
2. The staking mechanism is very important to XAI’s ecology
From XAI’s official Twitter feed, it can be clearly felt that for the XAI ecosystem, Sentry node operators and esXAI pledgers play a crucial role. This not only highlights the high importance the XAI chain attaches to maintaining network security and stable operation, but also reflects the core position of pledgers in the ecosystem. Their participation and support are the key driving force for XAI's continued growth and development. This attitude of attaching importance to the operation of the mechanism and community participation demonstrates the high professionalism of the XAI project and its huge potential for future development.
3. XAI pledge mechanism
Official documentation:
https://xai-foundation.gitbook.io/xai-network/xai-blockchain/xai-tokenomics/esxai-tokens-utility-and-purpose
I first need to state three important points:
Analysis is my understanding and does not represent financial advice.
XAI's staking mechanism is like a game version update. It does not happen overnight. It will be gradually iterative and open, so don't be impatient.
I will strive to keep this article updated as the project develops.
3.1 XAI can be converted into esXAI to participate in the staking ecosystem
When discussing the staking mechanism of the XAI ecosystem, we noticed that esXAI plays a central role. Currently, esXAI is mainly generated through the operation of Sentry nodes. For those community members who have not participated in node construction, they still have the opportunity to join this staking ecosystem. The specific method is that community members can participate in staking by converting XAI purchased on the market into esXAI. This operational process has been clarified in community discussions. This clear design idea not only provides a path for individuals who want to invest in XAI, but also opens up a way for community members who do not intend to directly operate nodes to participate in staking. Such a strategy reflects the project team's careful consideration of ecological diversity and inclusion, ensuring that all community members can contribute and benefit in different ways, further solidifying the XAI project as a highly professional and forward-looking first-class project status.
3.2 Notes on converting esXAI to XAI
I need to remind everyone here that XAI can be converted into esXAI directly, but the process of converting esXai into Xai includes an unlocking period, and users can choose the unlocking period independently. The exchange ratio will increase with the extension of the lock-in period:
The minimum lock-up period of 15 days will provide a ratio of 1:0.25 (25%).
A medium 3-month lock-up period will provide a ratio of 1:0.625 (62.5%).
The maximum lock-in period of 6 months will provide a 1:1 ratio (100%).
If the selected lock period is less than the maximum value (ratio <1:1), the corresponding number of esXai will be destroyed.
You can refer to Xai Project "Token Economy" Interpretation for more information.
3.3 Yield (income) sector
In the field of DeFi (decentralized finance), "Yield" usually refers to the return on investment or yield, which represents the income investors receive from their investments. In Chinese reading habits, "Yield" can be translated as "yield", "return rate" or simply "yield". For example, when discussing the "Yield Farming" strategy of a certain DeFi project or asset, we can describe it as "the strategy of pursuing high yields" or "the practice of obtaining returns by participating in DeFi protocol activities." I think Yield here is taken from this concept.
In general, staking esXAI to obtain esXAI is the core of the Yield sector. The current design mechanism has the following points:
Creating Pools (Node operators create pools)
In order to improve the utility of the node key, the creation of the pool will be exclusive to the node key holder. This will empower community members who have verified that they meet XAI compliance standards and have demonstrated support for the Xai community.
Analysis: KYC users can create pools. These users are firm supporters of XAI. After they create the pool, they can further expand the community based on the staking mechanism.
Pooling Keys (node keys can be added to the pool you want to add)
By pooling node keys together, community members can collaborate to reduce the randomness of reward issuance. This pooling strategy results in more consistent and significant rewards that benefit all participating pool members.
Analysis: It feels a bit like a BTC mining pool.
Staking esXAI (Staking esXAI)
The number of node keys added to a pool determines how much esXAI the pool can stake, and the more esXAI staked in the pool, the greater the possibility of obtaining higher rewards.
Analysis: Encourage pool node creators to do a good job in staking operations.
Rewarding Participants (stakeholders of the reward pool)
Staking rewards will be issued in the form of esXAI and can be accrued through additional incentives defined by the pool owner. Pools represent a transformative approach to community building, fostering collaboration and cohesion among ecosystem participants. This model has been successfully adopted by other blockchains, giving projects the ability to interact directly with their user base, provide customized rewards, and create a more interactive and rewarding experience.
Analysis: The operator who creates the pool needs to think of various ways to develop users who pledge esXAI. This implies that in addition to obtaining esXAI, there can also be other welfare settings.
3.4 Culture section
esXAI can be staked to gain access to special events and assets related to games deployed on the Xai blockchain.
3.5 Governance sector
DAO governance rights can be obtained through staking, including the right to propose proposals for the DAO/Foundation treasury.
4. Summary
Although the current official explanation of the staking mechanism is still relatively concise, through in-depth interpretation, we can understand the rich connotations behind it. After discussions on Discord, we got some clear insights:
The three major sectors of Yield, Culture and Governance constitute the core rights and interests provided by the pledge mechanism. In order to simplify the actual operation, these three rights and interests will be further integrated at the execution level, which means that once the pool's strategy is set, participants only need to pledge once to automatically enjoy the distribution of rights and interests in these three aspects according to the strategy. . Such document logic is not only easy to understand, but also makes the operation process more direct and efficient. In this way, the project not only provides a comprehensive staking model in theory, but also demonstrates in-depth consideration of user-friendliness and ease of operation in practice, demonstrating its excellent quality and vision as a top project.
The launch of the staking mechanism did not happen overnight, but its core functions were first revealed - for example, allowing users to earn income by staking esXAI. As the industry progresses, the ecosystem grows, and more games are added, I think Xai will gradually introduce more strategies to enrich the diversity of the staking ecosystem. It is worth emphasizing that although the XAI chain focuses on the gaming field, as a blockchain platform, it is naturally open to access from other Dapps and DeFi applications. This gradual expansion and flexible strategy not only demonstrates XAI Chain’s thoughtful consideration of future development, but also reflects its ambition to create a diverse, inclusive and dynamic digital ecosystem. This strategy ensures that the XAI chain remains forward-looking and competitive in the ever-changing digital world, proving its strength and potential as a top-level project.
