Demystifying XN Allocation: A Guide to Burning XEN for the X1 Chain

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Although not yet fully conceptualized, the X1 Chain has the potential to emerge as a groundbreaking addition to the blockchain landscape, designed to revolutionize the way a new network comes into existence and the way we interact with it. Among its innovative features, the concept of burning XEN to receive XN allocation (X1’s native coin) has captured the attention of the crypto community. This article delves into the intricate mechanics of this process, highlighting how and why users can participate, the distribution models at play, and the calculations driving the allocation.

Proof of Participation Protocol

Before we deep dive into the XN distribution, it’s important to accentuate that central to XEN and the X1 Chain’s ethos is the Proof of Participation protocol, which underscores the importance of active engagement and contribution. This protocol ensures that XN allocation is earned through meaningful actions that contribute to the ecosystem’s growth, reinforcing the idea that value should be a product of effort, commitment, and innovation.

XEN: The Foundation of XN and X1


XEN tokens serve as the bedrock upon which the XN allocation mechanism rests. XEN represents more than a mere token; it embodies the essence of participation, innovation, and commitment. As users burn XEN tokens, they establish a tangible connection to the X1 Chain’s growth, laying the groundwork for the distribution of XN allocation. XEN is the catalyst that propels the X1 Chain’s vision into reality, enabling users to actively shape the future of decentralized systems. The XN allocation serves as a reward for early adopters of XEN and active participants, offering them a stake in the success of the X1 Chain.

XEN logo
XEN logo
XN distribution
XN distribution Source: Xenducation

Distribution of XN Allocation

The distribution of XN allocation is a multi-faceted process that underscores the X1 Chain’s dedication to adoption through inclusivity. 

The total XN allocation is 1 billion tokens, and it’s distributed in four ways:

  1. 300 million XN are allotted to projects creating Burn Records during the process of burning XEN (eg. DBXen, Fenix, Xendoge, XEN game, XENPunks)
  2. 300 million XN are allotted to daily XEN burn auctions
  3. 300 million XN are allotted for VMPX holders
  4. 100 million are allotted for people participating with XENFTs

Burn Records

By participating in different projects that are built on the XEN Crypto protocol and that burn XEN tokens, users signal their potential willingness to take part in XN token distribution. XN allocation for users burning XN in projects on different networks is distributed according to the conversion schedule based on the total cost of production of XEN, meaning that if XEN is created on a chain where the cost of gas is very low, a proportional ratio of XN will be attributed, while the Ethereum to XN ratio will always be 1:1.

Burn Auctions

Burn auctions inject an element of excitement, allowing users to bid XEN tokens for the chance to earn XN allocation for a period of 333 days. Allocation is distributed proportionally among the highest bidders, incentivizing healthy competition and community engagement. The beginning of the auctions is tentatively set for September. Each day, users will bid for a share of XN. This kind of distribution ensures that the most people can get to participate in a fair way while building a large foundational community for X1

Cross-Chain Bridge

The VMPX token is the bridge token between Bitcoin and Ethereum; however, it’s going to be the main route to X1 because of the XN allocation. The cross-chain bridge provides access to a large amount of Bitcoin liquidity, which, through different incentives, could flow to X1 once the bridge is functional. The amount of XN allocation for each VMPX token held on Ethereum or Bitcoin is set at a ratio of 1 VMPX to 3 XN. VMPX holders will get XN only if they lock their tokens for a set amount of time, which can last up to three years. During that time, though, they will be able to earn fees from the bridge swaps.


This distribution is still in the works.

XN fosters unity

The distribution of XN is unlike any other because, through the burning of XEN, the protocol rewards the early adopters and the newcomers in a fair way.

It also engages people from all 11 EVM chains where XEN was deployed as well as from Bitcoin through the VMPX BRC20 token, adhering to the principle of inclusivity and the widest possible adoption.

An extended timeframe of the entire process ensures that the most people can accumulate XN for a long time, which increases their chances of getting a larger share of the allocation.

Through the creation of four different channels of token issuance, it caters to the needs of various participants while creating additional opportunity for value creation in the form of passive income from bridge swap fees in the case of VMPX or tokens coming from projects utilising the XEN burn mechanism.

There are many synergistic forces at play when it comes to XEN – XN – VMPX – X1 creating dynamic and interconnected systems vibrating with economic energy from all sides.

is not a silo for value extraction, like it often happens on other blockchains when the incentives between stakeholders are misaligned, but a focal point where the communities from all 12 chains meet.



The X1 Chain’s XN allocation mechanism represents a paradigm shift in how users engage with and contribute to a blockchain ecosystem. By burning XEN tokens, participating in burn auctions, and utilizing the cross-chain bridge, users actively shape the network’s growth while earning their share of the XN allocation. This innovative approach to distribution fosters fairness, transparency, and inclusivity, aligning with the X1 Chain’s mission to create a decentralized ecosystem driven by community participation and value creation. As the X1 Chain continues to evolve, the XN allocation process remains a powerful catalyst for fostering active engagement and driving the network’s success.