In-depth analysis of XAI ($XAI): an emerging force in the field of Web3 games

Author: Greythorn

Project name: XAI

Project Type: Game

Token: $XAI (native token, ERC20, Arbitrum One)

Cryptocurrency Ranking: #193

Market cap: $283 million

Fully diluted valuation: $2.5 billion

Project Overview

Developed by Offchain Labs using Arbitrum technology, Xai is expected to revolutionize the gaming industry. It simplifies the trading of virtual items for billions of gamers, eliminating 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 the need for cumbersome wallet management.

- Users can strengthen the network by operating nodes, obtain incentives and governance rights, and promote the development of the community-centered ecosystem.

- XAI eliminates the high Gas fees common 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 providing a pleasant user experience, handling the complexities of blockchain and ensuring a seamless gaming experience. They also ensure the stability of their blockchain network by implementing AntiTrust technology and smart contract execution.

Sentry node in XAI protocol

Sentry nodes play an important role in the XAI protocol and are mainly responsible for identifying and reporting any incorrect blocks to the network. These nodes are flexible and can run on a variety of devices, including personal computers and cloud platforms.

Rewards and Actions:

- Earn rewards: Sentry node operators can be rewarded with 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 the software from XAI's official website.

- Eligibility for rewards: While anyone can run a Sentry node, receiving rewards requires purchasing a Sentry license key.

- Compliance requirements: KYC checks are required to receive rewards. This process ensures that node operators are not located in the United States and are not subject to OFAC (Office of Foreign Assets Control) sanctions.

Tokenomics

Maximum supply: 2.5 billion

Total supply: 984.4 million

Circulating supply: 277 million (11%)

XAI is the main token of the XAI blockchain, similar to the tokens on the popular Layer 1 and Layer 2 platforms. It can be transferred freely. Additionally XAI:

- Used to pay Gas fees on the Xai L3 blockchain.

- Can be converted into esXAI, a non-transferable form of token.

Benefits of esXAI:

The main use of esXAI is staking, providing users with multiple benefits:

- Node operators are rewarded with esXAI and enjoy multiple benefits.

- Benefits of staking esXAI:

- Income account: Staking esXAI in the income account can increase the income of esXAI.

- Culture Account: Staking in this account can earn you special events and NFTs related to games on the Xai blockchain.

- Governance account: Enable DAO governance rights, including proposals for the DAO/Foundation treasury.

esXAI can be transferred instantly between these three accounts without any penalties.

Unlock period: 30 days unlock period.

All Gas fees paid in the Xai ecosystem are paid in XAI tokens and burned.

Token distribution:

Nodes, communities and DAC: 50.1%

Investors: 22.41%

- Suitable for early stage investors.

- Unlocking plan: starts 6 months after TGE, spread over 24 months. Total duration: 30 months.

Team: 20%

- Assigned to core team and early contributors.

- Unlocking plan: starts 6 months after TGE, spread over 36 months. Total duration: 42 months.

Ecosystem: 7.5%

- Market maker allocation: 2% of total supply, unlocked immediately after TGE.

- General ecosystem allocation: 5.5% of the total supply, unlocked starting 6 months after TGE, distributed over 36 months. Total duration: 42 months.

Unlock event:

Initial Phase: July 2024 to May 2025: Monthly Unlock Details:

- 41.38 million XAI (1.66% of total supply).

- Valuation: US$42.98 million (14.93% of total market capitalization).

Subsequent phase: after May 2025: Adjusted monthly unlocking details:

- From June 2025.

- Amount: Unlocked amount increased to 82.79 million XAI (3.31% of total supply).

- Valuation: US$87 million (29.87% of total market capitalization).

route map

Phase 2: January to March 2024

January:

- Token generation event: XAI token trading begins.

- Mainnet launch: Introducing XAI exchange, esXAI staking and Tarochi games.

- XAI Exchange: Exchange esXAI tokens into freely transferable XAI.

- Staking: esXAI staking is available which offers a variety of benefits.

February:

- DEX cooperation: DEX major projects cooperate with XAI to increase liquidity.

- Infrastructure development: XAI is an industry leader in integrated wallets, entry/exit channels and utilities.

March:

- Bridge Partnership: Work with Arb One to create high-speed, high-mobility solutions.

- Market Integration: Integrate leading marketplaces for game items, NFTs and collectibles.

Phase 3: April to July 2024

April:

- Final Form Release: The debut of the first on-chain trading card game.

- Game Partner 1: Integrate the game works of a well-known game developer with XAI.

May:

- Game Partner 2: Flagship games launched on Xai by leading Web3 game developers.

ecosystem

There are several exciting games currently in development and planned to be deployed on the XAI blockchain and released by the XAI Foundation:

- Final Form: Developed by Ex Populus and scheduled to be released in April 2024. This innovative game combines high-frequency card building with automatic combat functions and incorporates Rogue-Lite mechanics. As players delve deeper into the world, they will navigate a series of challenging situations.

- LAMOverse: LAMOverse is characterized by its chaotic and dynamic environment where everything, including the world itself, is destructible. LAMOverse promises to be more than just a game, but a fully immersive and ever-evolving universe where adaptability and creativity are paramount. The game will launch in Q4 2024

- Tarochi: Taroch represents a new era of on-chain RPG games, where every player’s action—whether completing a mission, overcoming a challenge, or capturing a monster—will be recorded in blockchain history, creating a lasting number. heritage.

Web3 Warrieors: An exciting on-chain survival game where players face an arduous journey into fierce battles with elemental lords, endless undead enemies, and terrifying bosses. As players progress, they can purchase NFTs through the in-game store to earn $BATTLE tokens and enhance their characters, adding a unique element to their gaming 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 any EVM Application expansion on the chain. Another noteworthy project is LayerZero, an interoperability protocol.

Investors/Fundraising

Overview of private investment rounds:

Round 1 (October 2021): Token Price: $0.01 (105x ROI)

Round 2 (May 2022): Token Price: $0.032 (32.71x ROI)

Round 3 (February 2023): Token Price: $0.035 (29.92x ROI)

Investors involved:

● Animoca Brands

● CMS Holdings LLC

● Outlier Ventures

● Fisher8 Capital

● Asymmetric

● Akatsuki

Bullish factor analysis

- Since its launch in January 2024, the XAI testnet has grown significantly and its performance in the blockchain field is eye-catching. The network has successfully processed over 5 million transactions and has successfully built an active community of over 200,000 user wallets within its ecosystem.

- The successful listing of the XAI token on multiple major cryptocurrency trading platforms including Binance, KuCoin, CoinEx and Crypto.com significantly increased the its liquidity and market exposure.

- As an emerging force in the field of Web3 games, this project shows innovation and development potential. In addition, XAI’s strategic partnership with Offchain Labs (the developer of Arbitrum) has brought significant improvements to its technology and market recognition. Thanks to Offchain Labs’ direct technical support, XAI’s development prospects in the blockchain field are clearer.

- It is worth noting that there will not be any token unlocking events for XAI tokens until July 2024, which alleviates market pressure to a certain extent.

Bearish factor analysis

- Although XAI’s blockchain game has not yet been released, the market has expectations for the quality and appeal of its games. In the current market environment, relying solely on the complex NFT market and in-game liquidity mining mechanism is no longer enough to ensure the long-term success of the project. The core appeal of a game—its entertainment and player participation—becomes a key factor in determining the success or failure of a project.

- Faced with sufficient funds and a solid project structure, the challenge facing XAI is to find the perfect integration of game mechanics and blockchain technology that can meet player expectations. This is not only a technical challenge, but also an important issue in market positioning and user experience optimization.

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