The XEN Crypto smart contract comes with a staking function that stakes XEN with an APY for a maximum of 1000 days. The tokens get burned from the supply, and they’ll be minted only when the stake is over. Jack Levin and his Fair Crypto Foundation bring staking XENFTs to the table to enable users to create an NFT as a Proof of Stake, rendering stakes portable and open to trading on the secondary markets.
How does XEN staking work
Staking XEN tokens means burning them for a period of time ranging from 1 to 1000 days. The staking APY started at 20% when the protocol launched on October 8 and decreases by 1% every 90 days until it reaches 2% and remains fixed. If the stake is ended before the mint term date, the user gets the principal back without the APY, and no penalties are applied.
It’s worth knowing that the burning function called by the contract removes the tokens permanently from the supply, unlike other protocols where the tokens are sent to the null address 0x00 or to the Black Hole address, where they remain locked but aren’t removed and remain accounted for in the total market cap. When XEN tokens are unstaked, they are minted anew rather than unlocked.
What are Staking XENFTs
Jack Levin is about to introduce a smart contract that will generate an NFT when XEN is staked in a way that the stake and the yield it contains become tradeable. Under the form of an NFT, the stake can now be sold on a secondary market like OpenSea or others, and the XEN, along with the yield it contains, will be claimable by the new owner of the NFT. Portable XEN stakes will potentially create more staking for the maximum term and will result in the burning of more XEN supply.
The XENS will be covered by a 7 day blackout period prior and after the end term of the stake, and in that period no transfers can be made.
It’s important to note that unlike the regular XEN stake, the staking XENFT can’t be unstaked before the end of the mint term and the stake must be brought to the very end.
It’s not possible to transform the existing stake into a staking XENFT.
The XENS smart contract also contains a burning function that can burn XEN Torrent XENFT. This function can be used by connected contract services.
Staking XENFTs are not just portable stakes, though. They are special kinds of NFTs that make your XEN more powerful if a certain rarity aspect is found within the NFT. The different rarity properties are:
- token ID is a prime number
- block number is a prime number
- token ID is a Fibonacci number
- block number is a Fibonacci number
There’s also a rarity score attached to each of the properties, so one is more rare than the other. The XENS rarity score is as follows:
- 500 for the token ID which is a prime number
- 1,000 for the block number which is a prime number
- 5,000 for the token ID which is a Fibonacci number
- 10,000 for the block number which is a Fibonacci number.
What is a prime number? A prime number is a natural number greater than 1, which is only divisible by 1 and itself. 2; 3; 5; 7; 11; 13; 17; 19; 23; (..) are the first few prime numbers, and they continue indefinitely.
Prime numbers are frequent near zero and occur with decrasing frequency as numbers become bigger.
They are very important in cryptography; they’re what make RSA encryption strong because, while it’s easy to multiply two prime numbers together and get a huge number, it’s almost impossible to quickly go the other way ’round.
A Fibonacci number is a number in a sequence of numbers in which each Fibonacci number is obtained by adding the two preceding numbers. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144…
Jack Levin released a draft of the NEX reflection token, which sees staking XENFTs as one of the tokens that will be made eligible for burning to participate in the NEX token supply distribution.
The rarity score is going to be very important in determining the amount of the allocated NEX. What it means is that if you have a XENS minted in a block that is a Fibonacci number, you will get a higher rarity score than if it isn’t.
This isn’t something that can be easily determined by a user when staking XEN but can be looked for when buying XENS on OpenSea, for example.
XENS with these rare properties embedded within them will be more valuable than those without because they will give the owner more power in various projects. If your token ID is 13, which is both a prime and a Fibonacci number, that means it’s quite powerful.
XENS on a testnet
XENS are available for testing on the Goerli testnet. The example NFT is different from the usual XENFTs because it doesn’t include the AMP or EAA parameters but it does include Rarity. Also the colors are to be determined however they are not going to be the same as the standard XENFTs.
Staking XENFTs are out on -https://t.co/0vBw7GVMYK— Jack Levin 🟧🦇🟦 (@mrJackLevin) January 15, 2023
XEN Stake is yet another part in XEN Crypto ecosystem. It allows a user to create a special version of XEN Crypto stake https://t.co/NMa5onHDqX pic.twitter.com/yr2tuAt6Vg