XEN Game Theory !

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Unlike bitcoin or other cryptocurrencies, it’s not enough to mint or buy and hold XEN to achieve maximum rewards. Maximum rewards mean being in the right place at the right time, and that can get tricky. Due to its game theory, there’s a sweet spot where you can achieve maximum rewards based on the number of participants, the length of the stake, and the APY rewards. The minting difficulty adjustment makes it harder for each new participant to receive rewards after some time, unless new participants extend the amount of time to get their XEN Crypto tokens. 

So let’s view the main functions dictating XEN emission.

XEN minting formula

XEN reward = AMP * t * log2(dR) * (1 + EAA (cRu))

AMP – reward amplifier; constant amplification of rewards by 3,000 and daily decrease by 1 until it reaches a plateau of 1.

cRg – global cRank

cRu – your rank

dR – delta rank (cRg – cRu)

t – mint term days

AMP starts at 3,000

XEN reward formula
XEN minting formula

Finding XEN's sweet spot

The game theory would be to find the sweet spot, which is very hard to find, making XEN more interesting. Being the first to mint tokens on the first day is the best option, as the rewards will be greatest when you’re early. Every additional person who joins the XEN network after you means that more rewards will be minted for everyone. The catch is that if someone continues minting every day in large quantities, he will dilute other participants. This will keep other people minting XEN to maintain their share in the global network. They will need to extend the waiting time to keep minting more. After eight years, XEN’s difficulty adjustment will make it very hard to mine the new tokens, and everyone will be left with the tokens they minted. To stop minting them halfway means losing to everyone else. Continued minting means more gas fees. Find your sweet spot for what you want to do with XEN and your best strategy for profit maximization.


It’s great to have a high delta rank with a long time range as it guarantees a high inflation allocation to yourself. A high delta rank is ensured by the overall number of people joining the network. When you claim your rank, you reserve for yourself a spot on the blockchain that will assign you a particular place in the queue, with the particular AMP and EAA you gained by being early, and with a time frame you have set. Being early seems like the perfect option due to the mad inflation rate given by very high staking APY. A high stake lasts for 4 years, and after that it remains at a flat 2%. This is good. However, if you plan to mint just that one time, you’re going to get diluted real fast because everyone after you will have much more, assuming they continue minting. You may need to mint from additional addresses, and that’s what you need to do if you don’t want to lose to everyone else.

There’s this dichotomy where every additional user creates more tokens for others because the global rank automatically raises, but on the other hand, there needs to be constant minting to keep peace with others who will surely mint more. It’s like a race where everyone starts the same, but not everyone can win. Whales will have lots of ETH for the gas to mint from multiple addresses every day, while average people will do some minting here and there. However, it is possible that the whales will avoid the trouble of minting and will instead purchase from the market, from small minters like you. If a whale has no bot, then this is what’s going to happen. No whale will sit and hit buttons the whole day. Finding the perfect game theory for yourself means taking all these points into consideration.

xen bots
XEN bots
You could also mint some XEN at the beginning, when the inflation rate is at its highest in a very short time span, and to offset the risk of dilution, buy XEN from the market from time to time. Keep in mind that due to the network effect and disinflationary nature of XEN, it should increase in value over the years, so you’ll probably be paying a higher price. XEN activity will raise the demand for gas while also raising the price of ETH, so the price of XEN and ETH should follow each other. Things could change, though, if XEN is launched on other chains where gas prices are very low. Minting will increase exponentially, diluting everyone who’s not minting. At that moment, the price of XEN may fall, and if it’s not supported by more new addresses minting XEN, it may not rise again. My prediction, though, is that people will start getting bots to do all the minting activity for them and mint XEN as much as their gas allows them to. It’s hard to say what will happen on other chains, but XEN launches on Ethereum and it’s to be seen if it will expand further. Until then, happy minting and XEN accumulation for eight years.

Free Mint Term

The Free Mint Term is limited to 100 days until it surpasses 5,000 participants. Once the 5,000 mark is passed, Free Mint will increase logarithmically according to the following function:

f𝚛𝚎𝚎𝙼𝚒𝚗𝚝𝚃𝚎𝚛𝚖𝙻𝚒𝚖𝚒𝚝= 100 + log2(cRg) * 15

where 𝚌𝚁𝙶 is the current Global Crypto Rank.

The Free Mint Term doesn’t give you much advantage but it’s good for stimulating liquidity. If you mint XEN early, you can use them to create a liquidity pool on Uniswap or sell your tokens on the market.

Amplifying XEN rewards

You definitely want to have the greatest possible AMP. That’s why it’s good to reserve your spot in the first few days after launch.

Using the initial 100 day wait time and further, the longest allowed time, looks like the best option to get the most XEN. The unknown is the number of participants that will join the network after you. This can be just a few or this can be a million. This number is important as from here we get our delta rank. The greater it is, the better.

The inflation rate will be higher in the initial phase of adoption because of the amplifier, and it will decline progressively over time. It’s unknown what the XEN price will be and it’s hard to make predictions. It’s assumed that those who mint XEN will want to sell it for a price that at least covers their gas fees. They will price in the time they needed to wait before minting the tokens.

AMP description
XEN Reward Amplifier formula

Early Adoption Amplification (EAA)

To give XEN maximum strength at launch, the formula also contains an Early Adoption Amplification (EAA) part, which is nothing else but a bonus for participants for being early adopters.

The formula is:

𝙴𝙰𝙰(𝚌𝚁𝚞) = 𝟶 . 𝟷 𝟶 . 𝟶𝟶𝟷 * [𝚌𝚁𝚞 /𝟷𝟶𝟶, 𝟶𝟶]

What it means is that those who join XEN at the beginning will get 10% more XEN. This figure decreases by 0.1% for every 100,000 XEN addresses minted.

The existence of EAA makes a stronger case for joining as soon as possible.

APY for staking XEN

The XEN token also has an APY reward system for everyone who stakes XEN. Due to the decreasing APY, it’s good to start your stake within the first 90 days to get the max 20% rewards. It’s only possible to have one active mint or stake per address, but if you are willing to play with more addresses, then you can create more stakes of different lengths. As more participants join the game, the number of new XEN minted will drop, and the only way to mint more tokens will be to extend the time to wait. It will take circa 4 years for the APY to come down from 20% to 2%, so these years are a good way to maximize the number of tokens you can get for free.