On November 12, the Fair Crypto Foundation released the XENFT Litepaper, which builds upon the bedrock laid by the XEN Crypto smart contract and ushers in the world of NFTs. We present here the general idea behind the XEN Torrent protocol and XENFTs, explaining how they follow the first principles of the blockchain, what is the gamification aspect, and explain their artistic part. Although XENFTs were primarily created as financial instruments aimed at facilitating the minting and burning of the supply, thanks to the built-in game theory, they also become collectibles you get when you take on a path to financial self-sovereignty as an individual enlightened about the economic independence rooted in the blockchain’s code.
Read: How to mint a XENFT
What is financial self-sovereignty
Financial self-sovereignty means that you are in possession of the private keys to your wallet and have control over your funds. You can achieve that only through self-custody and not through centralized exchanges or other mediators. An illuminated Xenian knows the importance of decentralization, transparency, censorship resistance, and trust through consensus, and most of all, he understands what steps are being taken when interacting with the smart contracts and the wallet.
When you mint XEN, you take on the first step to Xenlumination. When you engage with the XEN Crypto smart contract to mint your first XEN tokens, it means that you have already started the most important part of the journey because you have self-custody of the private key to your wallet. Well done, Xenian!
With the arrival of the XENFT Litepaper, the minting process is upgraded, more levels are added, and the burning function comes into action. Now you have the power not only to bring into existence but also to destroy. You’re the one setting XEN in motion to create, together with everyone else, a thriving community of like-minded Xenians.
The most important part is that the new smart contracts have no admin keys, so the code in them is immutable and no one can change it according to their whim. They are open source and audited. Contract security is something the Xenians should take very seriously.
What are XENFTs
XENFT is an ERC-721 non fungible token, which means that it’s a one-of-a-kind digital asset. It’s created in the process of minting and/or burning XEN tokens and can be traded promptly after its creation. XENFT acts in concert with the underlying XEN Torrent protocol to maximize and automate the minting process, making it easier and faster.
No two XENFTs are the same, and they distinguish each other by the following properties:
XEN Crypto minting related
– Term (days)
– Maturity Timestamp
– cRank (related to the first VMU, or the start of the batch)
– AMP (related to the first VMU, or the start of the batch)
– EAA (related to the first VMU, or the start of the batch)
XEN Torrent specific
– Count of VMUs
– Category (see below)
– Amount of XEN burned (see below)
– Redeemed (or not)
What is XEN torrent
XEN Torrent is the batch minter used to mint XEN. It’s activated by calling the ERC-721 contract. It virtualizes Ethereum addresses into Virtual Minting Units (VMUs). When you go to xen.network to mint XEN in bulk, you call a function to claim the user’s rank and execute it in parallel. Indicating the ‘count’ number will result in the creation of the equivalent number of VMUs used to mint XEN. That number can go from 1 to the maximum number allowed by Ethereum’s block capacity which is set at 30 million gas. One VMU requires 180,000 gas. Usually the maximum number of VMUs will be close to 128, however the safer threshold is to set it at 100. When the network’s traffic is very high, the transaction may fail, incurring a cost that is not related to the XENFT contract but rather to the Ethereum network conditions.
The advantage of the XEN Torrent protocol is that it allows for simultaneous minting of XEN with multiple VMUs without the need to manually create distinct Ethereum addresses. The contract handles all that under the hood. It claims multiple ranks in one transaction and issues an NFT as proof of the interaction with the contract and a key to all the VMUs it created. This means that whoever owns the XENFT can then come back at the end of the mint term and claim XEN tokens in bulk. In this sense, XENFT is like a bearer asset granting rights to the holder.
Why do we need XENFTs and XEN Torrent
The XEN Crypto smart contract allows for minting XEN tokens. It’s enough to connect your wallet to xen.network and mint tokens for free by just paying the network’s gas fee. One address can have just one mint per address, so people need to create more addresses to get more XEN. Doing this manually can become a daunting task, and XEN Torrent comes to the rescue by automating this process. The number of addresses will always be limited by the amount of gas one is willing to spend, so it’s not something unlimited. XEN Torrent not only saves you time but also increases security, as now you only need to hold one private key for the whole batch instead of many.
XENFT is the key to your batch that allows for taking in the present day the value of your XEN at the end of the mint term. In other words, you don’t have to wait until claim; you can sell your tokens instantly after you initiate the mint.
Nothing happens without engaging the XEN Crypto smart contract, which is the principle for everything else. It’s the basis of the XEN world, and everything that happens after is the transformation of the economic energy from the ERC-20, through the Torrent to the ERC-721. Once the XENFT is created, the energy can be accumulated by collecting different XENFTs or propagated and directed to other people who buy them from you.
We outline below three categories of XENFTs. The NFTs created in these categories have different purposes and involve a distinct process of creation. They all, however, hold the power of collectibles because each of them is special, some more than others. By default, an NFT with a number like 888, 369, 1,111,111, or 69 will be more desirable because people like to assign meaning to numbers.
The XENFTs assigned to each category will be the basic elements for future composability. They will be applied to projects in different ways. The use cases may be purely financial, but also educational, entertainment-related, or whatever our imagination can think of. “XEN is the fuel,” Jack Levin says.
Apex Category of XENFTs
The Apex NFT is the most expensive XENFT you can get, and it requires burning your XEN. The Fair Crypto Foundation established that it’s required to burn 10 billion XEN to get top-notch Xunicorn XENFT from the Apex Category. There are a total of 10,000 Apex XENFTs of different classes. The category is divided into 5 classes depending on the amount of XEN burned and the sequence of issuance. The names of the 5 classes are: Xunicorn, Exotic, Legendary, Epic, Rare. Each of the Apex XENFTs has a Yin Yang symbol symbolizing the forces of creation and destriction, abundance and contraction which simulates the working of the XEN Crypto’s token supply when paired with the burning mechanism contained in XENFTs.
If Class 1 XENFT requires a burn of 10 billion XEN, that means that to create 100 of these XENFTs will require 1 trillion XEN tokens. Today’s supply on Ethereum is 1,974,990,267,969.95 XEN. This means that if such XENFTs are in high demand, XEN supply will go down to by about a half causing liquidity crunch and XEN minting activity to skyrocket.
The certificate of burn is the XENFT that is given out when at least 100 VMUs used for minting and a specific number of XEN are burned. Burning XEN is like donating to everyone in the community with the difference that the VMUs will continue generating XEN that will be available for claim at the end of the mint term. Satoshi Nakamoto talked about lost coins that can’t ever be recovered in a similar way. He said: “Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone.” Burning XEN means reducing the XEN supply. The received NFT can then be sold on a secondary market as a collectible, or there may be other applications for it. The certificate of burn can be sold straight away, meaning that the value of your burning action is further propagated and doesn’t end there. The buyer will receive both the XENFT and the XEN contained in the VMUs.
Limited Category of XENFTs
The Limited XENFTs require 250 million XEN tokens to be burned and will be available for only 365 days after launch. Token IDs will follow those of Apex XENFTs, starting at 10,001. Similarly as it’s in other categories, there’s no limit to how many can be issued within one year, and the only requirement is the minimum number of VMUs, which is set at 100 and a burn of 10 million XEN. The term limit plays no role, but the issuance date is important. This class can be distinguished by a symbol of the rabbit.
Collector Category of XENFTs
This category is not for burning but for minting XEN in batches with the use of the XEN Torrent contract and a minimum of 1 VMU and 1 day mint term.
The Collector XENFTs are divided into 8 classes depending on their ‘Power’ which takes into account the number of VMUs multiplied by the time of the XEN minting term. It’s going to help users easily distinguish between XENFTs and know which one contains more rewards.
Classes of Collector XENFTs are named by the names of the gemstones, and each is distinguished by a symbol of a gem on the NFT.
Each time you mint XEN through the XENFT contract, you are issued an NFT belonging to a specific class, which will depend on the number of VMUs you minted and the length of time you waited for your XEN. Minting with 128 VMUs for the maximum of 550 days will place you in the Xenturion class, giving you unbounded status. A XENFT of this kind will be achievable only when a certain threshold of people join the network.
XENFT gamification and art
The XEN NFTs are financial instruments allowing for the minting and burning of the supply and for trading the future value of XEN. They make it possible for the user to batch mint XEN and sell it before the mint term arrives. But other than that, they also carry a game theory aspect as well as the artistic part.
The scarcity built into the Apex Category, the Limited series involving temporal limitation, and the Power play of the Collector Category make XENFTs a high status collectible game to play.
Burning 1O billion XEN to get a very special, Xunicorn XENFT will make you one of the community’s benefactors and one of the most powerful Xenians. With your generous burn, you get to make everyone else’s tokens more precious while still retaining the minting power of the VMUs and the value of the asset as a collectible.
In the Collector category, minting XEN guarantees you entry into a certain level. The issued NFT has a colour characteristic of that level. It mimics the spectrum of visible light. The lowest mint carries the lowest economic energy, and similarly to light, where the lowest energy is red, the issued XENFT is also red. Each additional mint will produce a higher economic energy and a stronger wavelength thus the next in order is orange, then yellow, green, blue, indigo, and violet. The last unbounded level is white, and it pertains to the highest energy level, the ultraviolet.
Minting XEN guarantees your ascension through the levels. Anyone can scale the levels by following the first principles of the blockchain and minting free XEN.
In the XENFTs game theory, everyone is required to mint some XEN to get the privilege of burning them later. In exchange for burning it, you’ll get a special, one-of-a kind XENFT with beautiful colours and the yin yang symbol indicating the Apex category. The rabbit sign distinguishes the Limited series. Collector XENFTs have different colours and symbols of a gems.
The Fair Crypto Foundation adds to the composability of XEN with the release of the new XEN Torrent protocol. It adheres to the same fundamentals of blockchain as the XEN Crypto ERC-20 contract does, but it adds a more exciting game theory and artistic aspect. This new product places XEN in the thriving $4.36 billion NFT market, increasing outreach and adoption to fulfill the goal of getting XEN into everyone’s hands. It is important to note that at every step of the creation or destruction of XEN, the user interacts with the contract, and no counterparty risk takes place. Minting XEN is a metaprocess of money creation, and as you progress through different stages of minting and burning, you achieve Xenlumination about the principles ruling XEN and the world of decentralization.