On June 4, 2023, Jack Levin, founder of XEN Crypto and creator of the VMPX BRC-20 token, released the X1 Litepaper. However, the design of X1 has since evolved, rendering that Litepaper outdated. HEre, you can read the latest Technical overview od X1. Initially planned as a fork of Polygon, X1 was tested on Fantom Opera before finally settling for a fork of Solana. The current testnet, Xolana, and its Proof of Work component, Xenblocks, are in the process of merging to become X1 upon mainnet launch.
X1 aims to outperform Solana with improved decentralization, supporting an unlimited number of nodes, and enhanced security and Sybil resistance via Proof of Work (PoW). It also strives for quantum resistance and energy efficiency. The original Litepaper detailed the distribution of the XN native coin and the VMPX BRC-20 bridge token. That design will likely change as Xenblocks was implemented at a later stage and additional airdrops were created to incude a larger crypto community.
Designed as a community-owned chain, X1 is built entirely on open-source code. Its XN coin will serve as a reward for ecosystem participants. With its commitment to decentralization, censorship resistance, fairness, transparency, and interoperability, X1 has the potential to significantly impact the crypto industry.
X1 Blockchain: The Foundation of Innovation
X1 blockchain emerges as a state-of-the-art Layer1 blockchain built on the same First Principles of XEN Crypto.
By leveraging the battle-tested open source technology of Solana to ensure maximum freedom, flexibility, security, and fast transaction execution, X1 aims to connect through its XN coin all EVM chains where XEN was deployed as well as Bitcoin.
The confluence of the three biggest ecosystems is set to usher in a new era of collaboration and technological possibilities for users and developers alike.
The XEN ecosystem from 14 EVM chains and Solana converges on X1, and, with no external funding, Bitcoin integration is indispensable to ensure fast growth through access to new users, developers, and a $500 billion market cap.
X1 is going to adopt Delegated Proof of Stake (DPoS) to achieve consensus and produce on average 50,000 transactions per second. The validators will be able to freely participate upon staking XN tokens and/or securing the required number of votes from the community.
The Bitcoin-Ethereum-X1 bridge
The bridge between Bitcoin, Ethereum, and X1, powered by the VMPX token, is set to provide maximum security and cross-chain interoperability and open up a world of opportunities for users and developers.
It needs to ensure that users can seamlessly transfer assets between the two chains without the need for intermediaries or centralized exchanges.
It was initially designed to use Libre chain and pNetwork to carry out bridge operations. Libre validators would verify the cross-chain asset swaps and guarantee the 1:1 peg with the underlying asset. Libre is operated by a total of 21 Block Producers validating transactions. Considering the recent acceleration of technological development in the Bitcoin world and the possibility of better solutions provided by OP-CAT/BIP-420 followed by CATNIP, bridge development was temporarily halted. There’s a possibilitly that VMPX will be burned when the burn auctions start however the details concerning the future of VMPX will be disclosed at a later point.
The VMPX token is a fairly-launched BRC-20 token on Bitcoin created by Mr. Jack Levin. Its supply is capped at 108,624,000, which is a so-called vampire number. It exists also as an ERC-20 token on Ethereum and has the same supply.
The VMPX mint on Bitcoin caused network congestion for days, unprecedented transaction fees, and disrupted BTC withdrawals on Binance. VMPX forced the Bitcoin community to upgrade their hardware to prepare for mass adoption and adapt to changes.
Better 🙂 https://t.co/DylwMoSapd pic.twitter.com/BsdewL8YrE
— Jack Levin (@mrJackLevin) May 8, 2023
Liquidity provision
The major appeal of the initial bridge design was the possibility of providing liquidity in exchange for fees. Holders of VMPX tokens would have the opportunity to participate in staking by providing liquidity between the Bitcoin, Ethereum, and X1 chains on the Libre network. By staking one or both VMPX tokens into the bridge liquidity pool, users would contribute to the seamless functioning of the bridge and earn yield as a reward. The yield would be paid out in VMPX fees. Considering that the bridge would connect the two most liquid chains with the most user activity, the fees generated from liquidity provision would possibly become a very good source of passive income.
XN coin distribution
XN will be the native coin of the X1 chain. The Litepaper inidcates a cap at 1,000,000,000 coins, however, due to the latest changes introduced to the blockchain design and additional airdrops it’s unknown if this supply cap will remain the same. The same is valid for XN distribution so treat the Litepaper as an indicator rather than as the final scheme. XN will be used as gas for transactions, rewards for validators, and for establishing consensus and security. The validators will be rewarded with XN for each successfully produced block, which creates inflation; however, each transaction fee burns XN, which reduces inflation and, in favorable conditions, creates deflation. The supply is thus inflationary, with a disinflationary or deflationary mechanism in place that preserves the value of the coin while ensuring economic efficiency and continuity of network operations.
The distribution of XN is designed to follow the Bitcoin model, where no pre-allocation is granted to anyone and the supply starts at zero with a fair system of participation and coin generation. This distribution model protects the network from regulatory attacks, ensures the broadest possible distribution, and upholds the ethos of fairness. The participants can generate XN in three ways, each with a 333 million XN allocation:
- By minting and burning XEN on 11 EVM chains. The burn is possible through participation in different projects that utilize the XEN burn function. The amount of XN will be in proportion to the quantity of burend XEN and the XEN market cap ratio between different networks.
- By burning XEN in a daily auction on Ethereum. Each day, 1,000,000 XN tokens will be released to the pool, and users can get a share of this pool by depositing XEN into the contract and burning it for XN. The auction will last 333 days for a total allocation of 333,000,000 XN. It’s possible to select the preferred burn period ahead of time. It can be the current period or any future period up until the final one.
- By converting VMPX to XN in a 1:3 ratio. These XN coins can then be used to provide liquidity for the Bitcoin-Ethereum-X1 bridge.
Listen to @mrJackLevin talking about XEN, VMPX, XN and the X1 Litepaper. Voice your concerns and ask questions in the comments below so they can be addressed next time Jack is speaking pic.twitter.com/CuS9XH4kQ6
— ⓧ XEN Crypto | News & Updates (@Xencryptoio) June 10, 2023
Final note
The X1 Litepaper isn’t set in stone yet. The Litepaper’s disclaimer states: “This is a rough draft. Changes will be made. Speculation based on information in this document is at own risk.” That being said, some adjustments may come, but as time passes, the community understands better how everything works, the reasons behind certain choices, and the vision behind X1 and the XEN ecosystem as a whole. Here, you can read the latest X1 Technical overview that is currently tested before the launch.
