XAI is directly supported by Offchain Labs, the team behind Arbitrum, and utilizes Anytrust technology to achieve maximum speed and minimal costs. This article will review in-depth about $XAI projects
📌The article consists of 4 parts:
1. Key features of XAI
2. Tokenomics ($XAI and $esXAI mechanisms), fund valuation
3. Price projection for $XAI
4. Short-term investment plan
1. Key features of XAI
🔸 XAI is the first Layer 3 solution in the Arbitrum ecosystem, with the mission of bringing traditional gamers into the world of Web3 gaming in general and increasing users for the Arbitrum ecosystem in particular. It offers:
+ Scalability: #Layer3Networks technology enables scalability to hundreds of millions of users.
+ Low fees: XAI blockchain has low gas fees, aiming for convenience and savings for players.
+ Simplicity: XAI provides a simple wallet interaction method for players (an important feature for traditional gamers who prefer easy-to-use interfaces).
+ Stability: XAI ensures the stability of its blockchain network by implementing AnyTrust technology.
🔸 Sentry nodes:
The purpose of Sentry nodes is to address the verification challenge, primarily focused on identifying and reviewing fraudulent actors. The platform's Sentry nodes have achieved several milestones, including:
- Total revenue of over $20 million in 3 weeks.
- Over $2.5 million distributed to referral partners.
- Over 30,000 Keys sold.
- Over 5,000 wallets that have purchased at least 1 Key.
- Over 5,000 active nodes.
🔸 Towards a vast GameFi ecosystem
XAI is a blockchain gaming platform (similar to $GALA ) that will host multiple games and facilitate in-game transactions using the $XAI token. Currently, Ex Populus is deploying its games on the XAI Blockchain.
Ex Populus is a game development studio led by industry veterans from renowned companies such as Pixar, Ubisoft, Activision, Blizzard, and more. The company is currently developing highly anticipated games such as Final Form, LAMOverse, and Tarochi, Web3 Warriors.
2. Tokenomics (including XAI and esXAI)
🔸 Utility of $XAI token:
- Gas fees: This portion is directly burned to reduce supply.
- XAI can be converted into esXAI.
- Staking options include:
+ Staking esXAI to increase yield for node operators.
+ Staking XAI to participate in special events and acquire NFTs from games built on XAI.
+ Staking XAI for DAO voting.
🔸 Special token design:
- Total Supply: 2,500,000,000 XAI (including both XAI and esXAI).
- Initial Supply: 277,118,150 XAI (11.08% of total supply).
Team: Locked for 6 months, with a 36-month unlocking period.
Investors: Locked for 6 months, with a 24-month unlocking period.
$XAI has raised approximately $10 million in funding through three funding rounds at prices of $0.01, $0.032, and $0.035 per XAI.
Ecosystem: 2% of the total supply will be unlocked at listing for market makers (MM). The remaining 5.5% of the total supply is allocated to the ecosystem and locked for 6 months, with a 36-month unlocking period.
Sentry Node operators will continuously receive esXAI, and it is estimated that after 5-6 months from the Token Generation Event (TGE), the total supply of XAI and esXAI will reach 1,250,000,000 (50% of total supply). At that point, the halving process for node rewards will take place (reducing esXAI rewards by half after each 50% token unlock).
esXAI has a 1:1 value with XAI but cannot be immediately converted back into XAI and requires a vesting process with the following unlocking mechanism:
- 15 days vesting with a 1:0.25 ratio (25%)
- 60 days vesting with a 1:0.625 ratio (62.5%)
- 180 days vesting with a 1:1 ratio (100%)
This mechanism aims to reduce initial selling pressure resulting from token rewards for node operators.
➡️ Summarizing the above information, the first 6 months will have the lowest amount of unlocked $XAI tokens. After the TGE, 5-6 months will see 50% of the tokens being unlocked.
- The initial listing will have Launchpool 3%, Ecosystem 1%, Airdrop Community 5%, and 2.08% reserved for node operators (converted from esXAI).
- Consider the potential selling pressure from the unlocked tokens and the vesting period of esXAI when evaluating the tokenomics and potential price fluctuations.
3. Price projection for $XAI
If we compare XAI to other blockchain gaming projects in terms of market capitalization, here are the approximate values:
$OAS 111M cap => $0.4/$XAI
$ACE 178M cap => $0.64/$XAI
$RONIN 525M cap => $1.89/$XAI
#GALA 840M cap => $3.03/$XAI
$IMX 2.86B cap => $10.3/$XAI
4. Short-term investment plan
XAI is a prominent GameFi project on the Arbitrum network that aims to attract not only users within the crypto market but also traditional gamers.
It has partnered with Offchain Labs, Team Secret, MIX, Rug Radio, Camelot, Rarible, Thirdweb, and LayerZero to build products on the XAI platform.
The first six months are crucial for setting up a growth wave due to the tokenomics design (with token supply reaching around 50% of the total circulating supply six months after listing).
The most important aspect is to have a reasonable and potentially profitable initial valuation. It may be worthwhile to consider investing early.
Additionally, it's important to evaluate the quality of the games within the ecosystem, including factors such as user base, engaging gameplay, and the potential for FOMO (fear of missing out) regarding items and NFTs.
These elements are critical for blockchain games to succeed.
-------------------
Please note that investment decisions should be made based on thorough research and personal risk assessment.