There’s a lot of innovation going on in the crypto space, and the possibilities brought by blockchain technology seem infinite. There were, however, lots of pump-and-dumps, scams, hacks, rug pulls, and you name it, crypto schemes. The majority of the projects raising money on Ethereum and other networks want a big chunk of the newly launched tokens for themselves. In one way or another, they want to retain control over the project. They can do so by pre-minting and allocating a large portion of the tokens to themselves; keeping admin keys to the smart contract, allowing them to change the parameters; or taking on a large portion of the governance tokens, allowing them to change the rules. By effecting changes, they can manipulate the price to their advantage. This is not decentralization, nor is it a trustless system.
Why XEN is different from other tokens
“XEN is the first crypto since Bitcoin in which the community builds it from the ground up,” said Jack Levin.
XEN is different because the community, not the founding team, has full ownership. There’s no organization establishing the rules. There are only individuals minting their free tokens, not governed by anyone, and bound solely by the XEN token. There’s no one to hold the admin keys to the open source smart contract.
XEN is Not an ICO
The supply of XEN starts from zero, waiting for the first person to connect their wallet and mint the first tokens. It can be anyone. After that first person, many more will come, and they will all connect their wallets and mint their own XEN. There’s no middleman in between. There’s no central authority selling you tokens, no team whatsoever. This means that there’s no need to trust anyone but yourself. You need to take responsibility for holding on to your private key and storing it securely. This is what self-custody is. The possibility to mint tokens for yourself means that you’re not doing an ICO because no one is offering anything to you. You do your own work and everything comes as your own effort. The community of individuals like you makes the XEN different from all others because there’s no team, organization, or any central part pushing the idea forward or taking the profit from it.
What makes XEN special
XEN is not an ICO like you are used to. People are used to ICOs being started by someone who then decides how to allocate the tokens. That entity takes the money and uses it to invest in the project. XEN is decentralized, and the receiver of free tokens is you, not the project team. It’s effectively a reward for your own work, and you are a part of a larger community of XEN. It’s possibly the first ethical way to get the tokens because you get them for being you, not because you invested anything in them. The XEN minting function ensures the highest rewards for early adopters. The earlier you come, and the more people come after you, the more XEN everyone gets.
XEN minting difficulty increases on a monthly basis. Each month, it becomes slightly more difficult to mint new XEN, which means that the supply expands because you mint new tokens, but the effect is disinflationary because you mint fewer tokens. This is something people will be talking about because it makes your tokens more valuable as the difficulty increases. The decreasing token emission will bring other people on board, which is good. XEN has an amplification reward where 3000 is the multiplier. It’s the multiplier that decreases by 1 every day. If you make it to lock in the multiplier at the launch, then after a maximum of 100 days you’ll get the maximum number of tokens. If that’s not enough, the early adopters also get their XEN multiplied by the Early Adopter Amplification (EAA) factor. It starts at 10% and decreases in a linear fashion by 0.1% for every 100,000 addresses connected to the smart contract. Moreover, whoever stakes XEN within 1620 days of the launch can count on an APY. During these four years, the APY falls every 90 days from 20 to 2%. After that time, the APY remains constant at a 2% rate.
How long does the Distribution last
The amplifier AMP in the XEN formula is the one deciding the duration of the minting process. If the amplifier is reduced by 1 every day until it reaches 1, that means that it will take a little over eight years to reduce the emission of new XEN tokens by around 99%.
“So every user that’s coming much later will be minting less. So it makes sense to start minting as early as possible for as long as possible, so that you can lock up or lock in the amplification multiplier and you can get the most tokens minted over the longest period of time,” said the founder of XEN.