XENPunks is a unique NFT collection of 10,000 pieces using XEN as a currency to mint NFTs and implementing a buy-and-burn mechanism to boost the price of XEN. It’s not just a collection but also a lottery game and passive income generating assets. The XENPunks team, motivated by the idea of increasing adoption and burning the supply, wanted to create something for the XEN community. Following the success of popular CryptoPunks, they decided to empower XEN users with their own collection.
What are XENPunks
The XENPunks team didn’t want to create yet another collection similar to thousands of others so they decided to launch their project with some gamification aspects to encourage people to participate.
Their goal was to do something more fair, following the spirit of XEN. This is why they decided to implement some of the mechanics that differ from other projects out there, and here’s how they differ.
To mint XENPunk, a user needs to approve and spend 100,000,000 XEN per NFT, and pay a 5% royality fee.
In most NFT projects, the royalties and the mint fee usually go to the founders, but XENPunks doesn’t take anything for themselves and instead redistribute the fees and burn XEN.
Once a week, XEN is burned, and the XN collected at the receiving address will be distributed to the minters. The first distribution will happen on Christmas, and any user will be able to press a button and redistribute rewards for all in a Santa Claus style.
The royality fee is instead used to buy XEN from the market and burned, contributing to XEN disinflation while exercising positive price pressure. This burn creates additional XN, which is again distributed to the minters.
But here’s where the lottery and fun kick in because each XENPunk has a rarity score and a power feature.
XENPunks are divided into four groups, and each group has a power X multiplier that gives an equivalent return in XEN value.
– XEN God Mode (Blue Fire X) – 20X
– Hustler Xenian (XEN Burn X) – 2.5X
– Vampire Xenian (VMPX V) – 1.25X
– Regular Xenian (White X) – -3.9X
There are just 97 XEN God Mode NFTs capable of giving the owner a 20X return, which is 2,000,000,000 XEN for an initial burn of just 100,000,000 XEN. There are 1035 Hustler Xenian NFTs, 3184 Vampire Xenians, and 5684 Regular Xenians.
The trick is that Regular Xenians get a negative power of -3.9X and a return in XEN value of just 26,250,000. What this means is that those who are unlucky and get to mint a Regular NFT will get fewer rewards than everyone else.
The chance of minting a Regular is 56.84%, and there’s a 9.7% chance of minting a XEN God Mode NFT, giving a multiplier of 20X on the initial mint. The chance that a user gets a NFT yielding more in XEN value than what was spent initially is 43.16%.
Why owning a XENPunk
A XENPunk is not a JPEG NFT. It’s a collection of images, but with yield-generating features that make these NFTs quite unique.
The owners of XENPunks are entitled to the XN allocation based on the rarity score of their punk.
The XN token will be the gas coin of the X1 chain that will be launched by Jack Levin in 2024. Every XEN burn gives XN. Although there will be an auction lasting 333 days, the projects burning XEN will get XN for years after the auction ends, so owning a XENPunk will basically give the owner some free gas to transact on X1. XENPunks are not only a funny way to present oneself to the world, but they also touch on the feeling of belonging to a community. Should the XN alloction ever stop, the rewards will be distributed in ETH.
Considering that there are only 10,000 punks and they are minted in a randomised fashion, not everyone will find their personality match right away. Some may need to mint a few to find the right punk, generating more fees for other owners while potentially hitting the jackpot with the XEN God Mode NFT.
XENPunks can be easily sold on their built-in marketplace, and the built-in feature of owning an NFT, which gives XN for years to come, can be a good motivator for the trade other than a XEN culture-creating endeavour.
The XENPunks smart contract is verified on chain, created and published through thirdweb platform which automatically audits the code.
It uses the innovative ‘delayed reveal’ feature, where the creator programmatically guarantees that the content will be revealed in the future as the content of NFTs, at the time of minting. As a result, bots and no one else can see the rarity of the NFT to target the best ones. ‘Delayed reveal’ solves the snipping by publishing the URI at which the secret contents of the NFT live only at the exact moment of reveal.
The NFTs can be minted in batches to optimise gas usage during the minting process. This way, you can try your luck with many XENPunks without incurring unnecessary gas costs.
XENPunks is a contract launched on Ethereum and there’s a possibility of launches on other chains.