Deep Dive into XAI ($XAI): An Emerging Force in the Web3 Gaming Realm
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Deep Dive into XAI ($XAI): An Emerging Force in the Web3 Gaming Realm
Xai has the potential to revolutionize the gaming industry.
Navigating Web3 tides with focused insightsAuthor: Greythorn
Project Name: XAI
Project Type: Game
Token: $XAI (native token, ERC20, Arbitrum One)
Crypto Rank: #193
Market Cap: $283 million
Fully Diluted Valuation: $2.5 billion
Project Overview
Developed by Offchain Labs using Arbitrum technology, XAI has the potential to revolutionize the gaming industry. It simplifies virtual item trading for billions of gamers and eliminates the need for complex crypto wallets.
Key Features of XAI:
- XAI integrates cryptocurrency wallets directly into the backend of the gaming experience, managing wallets on behalf of players so they can easily trade items without cumbersome wallet management.
- Users can strengthen the network and earn incentives and governance rights by operating nodes, fostering a community-driven ecosystem.
- XAI eliminates the high gas fees commonly seen in blockchain games through a combination of innovative gas subsidy contracts and Layer 3 technology, making the experience more affordable and accessible.
- XAI focuses on delivering a delightful user experience by handling blockchain complexity to ensure seamless gameplay. It also ensures stability of its blockchain network through AntiTrust technology and smart contract enforcement.
Sentry Nodes in the XAI Protocol
Sentry nodes play a crucial role in the XAI protocol, primarily responsible for identifying and reporting any incorrect blocks to the network. These nodes are flexible and can run on various devices, including personal computers and cloud platforms.
Rewards and Operations:
- Earning Rewards: Operators of Sentry nodes can earn rewards in esXAI tokens. The distribution of these rewards is determined by a probabilistic algorithm and can be increased by staking esXAI tokens.
- Setup Process: To set up a Sentry node, operators need to download and install software from XAI's official website.
- Eligibility for Rewards: While anyone can run a Sentry node, earning rewards requires purchasing a Sentry license key.
- Compliance Requirements: Claiming rewards requires KYC verification. This process ensures that node operators are not located in the United States and are not subject to sanctions by OFAC (Office of Foreign Assets Control).
Tokenomics
Maximum Supply: 2.5 billion
Total Supply: 984.4 million
Circulating Supply: 277 million (11%)
XAI is the primary token of the XAI blockchain, similar to tokens on popular Layer 1 and Layer 2 platforms. It is freely transferable. Additionally, XAI:
- Is used to pay gas fees on the Xai L3 blockchain.
- Can be converted into esXAI, a non-transferable form of the token.
Benefits of esXAI:
The main use of esXAI is staking, which provides users with multiple benefits:
- Node operators receive rewards in esXAI and enjoy various benefits.
- Benefits of staking esXAI:
- Rewards Account: Staking esXAI in the Rewards Account increases esXAI earnings.
- Culture Account: Staking in this account grants access to special events and NFTs related to games on the Xai blockchain.
- Governance Account: Enables DAO governance rights, including submitting proposals for the DAO/foundation treasury.
esXAI can be instantly transferred between these three accounts without penalties.
Unlock Period: 30-day unlock period.
All gas fees paid within the Xai ecosystem are paid in and burned as XAI tokens.
Token Distribution:
Nodes, Community, and DAC: 50.1%
Investors: 22.41%
- Allocated to early investors.
- Unlock schedule: Begins 6 months after TGE, distributed over 24 months. Total duration: 30 months.
Team: 20%
- Allocated to core team and early contributors.
- Unlock schedule: Begins 6 months after TGE, distributed over 36 months. Total duration: 42 months.
Ecosystem: 7.5%
- Market maker allocation: 2% of total supply, unlocked immediately at TGE.
- General ecosystem allocation: 5.5% of total supply, unlocking begins 6 months after TGE, distributed over 36 months. Total duration: 42 months.
Unlock Events:
Initial Phase: July 2024 – May 2025: Monthly unlock details:
- 41.38 million XAI (1.66% of total supply).
- Valuation: $42.98 million (14.93% of total market cap).
Subsequent Phase: After May 2025: Adjusted monthly unlock details:
- Starting June 2025.
- Amount: Unlock quantity increases to 82.79 million XAI (3.31% of total supply).
- Valuation: $87 million (29.87% of total market cap).
Roadmap
Phase Two: January – March 2024
January:
- Token Generation Event: Trading of XAI tokens begins.
- Mainnet Launch: Introduction of XAI swap, esXAI staking, and Tarochi game.
- XAI Swap: Convert esXAI tokens into freely transferable XAI.
- Staking: esXAI staking with multiple benefits becomes available.
February:
- DEX Partnership: Major DEX projects collaborate with XAI to increase liquidity.
- Infrastructure Development: XAI becomes an industry leader in integrating wallets, on/off ramps, and utilities.
March:
- Bridge Partnership: Collaboration with Arb One to create high-speed, high-liquidity solutions.
- Marketplace Integration: Integration with leading marketplaces for gaming items, NFTs, and collectibles.
Phase Three: April – July 2024
April:
- Final Form Launch: First-ever on-chain trading card game debut.
- Game Partner 1: Integration of a well-known game developer’s title with XAI.
May:
- Game Partner 2: Flagship game launch on Xai by a leading Web3 game developer.
Ecosystem
Several exciting games are currently in development and planned for deployment on the XAI blockchain, released by the XAI Foundation:
- Final Form: Developed by Ex Populus, scheduled for release in April 2024. This innovative game combines high-frequency deck-building with auto-battler mechanics, incorporating Rogue-Lite elements. As players progress through the world, they navigate a series of challenging scenarios.
- LAMOverse: LAMOverse features a chaotic and dynamic environment where everything, including the world itself, is destructible. LAMOverse promises not just a game but a fully immersive and evolving universe where adaptability and creativity are essential. The game will launch in Q4 2024.
- Tarochi: Tarochi represents a new era of on-chain RPG gaming, where every player action—whether completing quests, overcoming challenges, or capturing monsters—is recorded on the blockchain history, creating a lasting digital legacy.
Web3 Warriors: An exciting on-chain survival game where players face grueling journeys battling elemental lords, endless undead enemies, and terrifying bosses. As players progress, they earn $BATTLE tokens and enhance their characters by purchasing NFTs from in-game stores, adding a unique element to their gameplay experience.
In addition to these games, other projects launched or already available on XAI include Camelot DEX, Rarible NFT marketplace, and Thirdweb—a toolkit for Web3 development that simplifies user onboarding, smart contract deployment, fiat payments, and app scaling across any EVM chain. Another notable project is LayerZero, an interoperability protocol.
Investors / Fundraising
Private Investment Rounds Overview:
Round One (October 2021): Token price: $0.01 (105x ROI)
Round Two (May 2022): Token price: $0.032 (32.71x ROI)
Round Three (February 2023): Token price: $0.035 (29.92x ROI)
Investors Involved:
● Animoca Brands
● CMS Holdings LLC
● Outlier Ventures
● Fisher8 Capital
● Asymmetric
● Akatsuki
Bullish Analysis
- Since its launch in January 2024, the XAI testnet has gained significant momentum, demonstrating impressive performance in the blockchain space. The network has successfully processed over 5 million transactions and built an active community of over 200,000 user wallets within its ecosystem.
- The successful listing of the XAI token on multiple major cryptocurrency exchanges—including Binance, KuCoin, CoinEx, and Crypto.com—has significantly enhanced its liquidity and market visibility.
- As an emerging force in the Web3 gaming space, the project demonstrates innovation and growth potential. Moreover, XAI’s strategic partnership with Offchain Labs (the developers behind Arbitrum) brings substantial advantages in both technology and market credibility. With direct technical support from Offchain Labs, XAI’s prospects in the blockchain space appear even brighter.
- Notably, there will be no token unlocks for XAI until July 2024, which helps alleviate market pressure to some extent.
Bearish Analysis
- Although XAI’s blockchain games have not yet launched, market expectations around their quality and appeal remain high. In the current market environment, relying solely on complex NFT markets and in-game liquidity mining mechanisms is no longer sufficient to ensure long-term project success. The core appeal of the games—their entertainment value and player engagement—has become the decisive factor in determining project success.
- Despite ample funding and solid project architecture, XAI faces the challenge of finding the perfect balance between game mechanics that meet player expectations and blockchain integration. This is not only a technical challenge but also a critical issue regarding market positioning and user experience optimization.
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Greythorn
