XPNET Tokenomics
$XPNET is the native token of XP.network. It is used for transaction fee payment, staking, as well as to encourage further development of XP.network. XPNNET runs on Binance Smart Chain – one of the fastest and most efficient blockchains, widely used by DeFi and NFT applications.
Smart Contract (BSC): 0x8cf8238abf7b933Bf8BB5Ea2C7E4Be101c11de2A
The initial public sale of $XPNET was held on September 14, 2021 on three launchpads: BSCPad, Occam.Razer, and Gate.io. Earlier seed and private rounds were equally sold out. In particular, XP.network’s seed round was backed by such well-known players as Wings Capital, Master Ventures, Kosmos VC, Walsh Wealth Group, and 15 more funds. As of the time of writing, the token was traded on PancakeSwap and Gate.io.
Paying NFT bridge fees with $XPNET
As explained above, when a user initiates an NFT transfer from one chain to another, the original NFT is locked in the bridge smart contract, and relay validators estimate the total transaction fee, which is comprised by the fee charged by the target blockchain and the relay validators own fee. The required amount is withdrawn from the user’s account on the origin blockchain; so, for example, if Bob sends an NFT from BSC to Elrond, he will pay the fee in BNB. The BNB coins are then automatically converted partially into EGLD (to pay the Elrond blockchain fee) and partly into XPNET to pay the validators. Once all the fees are paid, the NFT is moved to Bob’s account on the target blockchain.
As the volume of NFT assets flowing through the bridge grows, more and more XPNET will be needed to pay relay validators, stimulating demand. Very importantly, end users aren’t required to hold XPNET in order to be able to transfer NFTs: they can use the same coins they already use to transact with blockchains. As industry experience shows, making end users pay fees in a project’s native tokens can be really damaging to a project’s growth; by removing this barrier, XP.NETWORK can grow its active user base much faster.
NFT-enabled XPNET staking
XPNET token holders can stake the token for 3, 6, 9, or 12 months, and earn an APY of 45%, 75%, 100%, or 125%, respectively. What makes XP.network’s staking program unique in the decentralized landscape is the addition of chain-agnostic NFTs.
Every staker will be able to mint an NFT representing their stake. In fact, the right to claim staking rewards lies with the holder of the NFT. A holder can always sell their XP.NETWORK NFT on a marketplace, but this will mean losing the right to the rewards, which will go to the buyer. The original staker will still be able to withdraw the stake deposit once the staking period expires, of course.
The value of an XP.NETWORK NFT consists of three elements:
1) Accumulated staking rewards. The NFT holder can always check how many XPNET tokens have already been awarded and withdrawn – and thus estimate the residual value.
2) Artistic value. As of the time of writing, the work on the NFT design was ongoing, but it is safe to say that in terms of artistic quality, XP.NETWORK assets will be on par with the major popular NFT collections.
3) Chain-agnostic character. The NFTs can be sent to, stored, and sold on any of the blockchains supported by the bridge.