🔑 Register an account with Gate.io
👨💼 Complete KYC within 24 hours
🎁 Claim Point Rewards
Your Gateway to crypto news and insights
XEN's vision is to become a Bitcoin built on Ethereum in the form of smart contracts.
The founding team members of XEN are all well-known "crypto veterans" in the crypto space.
The innovative mode adopted by XEN: PoP (Proof of Participation) mechanism is the core reason for its popularity.
XEN may prove that easy touches have no memory, only FOMO.
Recently, the most popular project in crypto space is undoubtedly XEN. The whole crypto sector seems to return to the "bull market" overnight, but what is the specific situation? Let's find out!
What Is XEN
According to the introduction of the official white paper of XEN, XEN aims to become a crypto asset jointly built by a community. Through its unique economic design, it allows users to enter at the lowest threshold and advocates Nakamoto's first principle in the Bitcoin white paper: promoting self-regulation, trust, transparency, and decentralization through consensus.
The original intention of the team's design of XEN is that crypto assets are polarized, and mainstream assets are constantly overbought and then sold; Non-mainstream assets have been ignored by many investors for a long time, and have been pre-mined and sold by the founding team and the blue whale simultaneously. XEN hopes to solve these two problems through fair issuance.
In addition, XEN wants to be a Bitcoin built on Ethereum in the form of smart contracts.
Bitcoin is a currency system built on an independent blockchain network (Bitcoin Network). The supply starts from scratch, and the maximum supply is 21 million, which is mined according to the computing capacity.
XEN is a currency system directly built on Ethereum. It has no maximum supply and no pre-mining. Its proof of participation mechanism is similar to the game of stealing vegetables. You can plant vegetables on time and receive vegetables on time. If you receive vegetables late, your vegetables will be stolen (in this mechanism, you will be punished for being late, and if you are late for 7 days at most, you will return to zero).
So we can regard XEN as a simplified version of Bitcoin that is "lazy but not so lazy, low threshold but not completely zero threshold". It is the way of Litecoin, Dogecoin, and SHIB. It requires a strong meme to support consensus. Now it is more and more difficult because easy touches have muscle memory.
XEN wants to be a community to build crypto assets and connect like-minded people. If you are an experienced OG or just interested in Crypto, you may want to know more about it.
As members of the founding team of XEN, people may be familiar with some of them. After all, they have been immersed in crypto space for a long time. Here are some "crypto veterans":
Jack Levin was born in St. Petersburg, Russia in 1974, and moved to the United States with his family in 1990. He graduated from the University of Missouri in computer science. Jack's interest in technology began at the age of 16 when he had his first computer and learned by downloading and reading the documents of the Usenet group. He became an expert Web 1.0 developer, server system architect, network designer, and Linux master, and moved to Silicon Valley, where he worked for security for office and early Internet entry companies.
In 1999, after creating the first open-source embedded computer running Linux with a firewall and VPN, he met Sergey Brin and Larry Page, the founders of Google, at Harvard University, and joined Google that year.
Therefore, Jack is indeed an early employee of Google. You can see him in Google's early videos. The question of whether he is the 21st employee needs to be confirmed, but this is not important. Many insiders speculate that he is most likely the 21st employee of Google, but this ranking is his own, not the official version of Google.
In 2005, Jack and his brother worked together as yFrog. In April 2009, he founded the parent company ImageSack. It was originally the top 20 websites in the United States, with 60 million independent users and 35 million subscribers each month. In April 2015, Jack founded a second company, Nvenfy, which develops cloud-based software solutions.
In 2010, a friend of Jack at Google introduced Bitcoin to him, and he immediately liked the idea of a "peer-to-peer electronic cash system". In 2011, Jack began to mine Bitcoin with 120 servers in his data center, which lasted for three years. By 2014, he switched to ASICS and dug Bitcoin for a period of time, but when his hash computing power was exhausted, he stopped mining. He occasionally gave the Bitcoin he dug up to his friends to promote Bitcoin. According to him, in the past two years, a friend of his has successfully bought a house by selling the Bitcoin he gave Jack before.
Jack has always been concerned about the crypto industry. He especially appreciates Ethereum and its economic system. He thinks that POW consumes too much energy and that the mechanism is a bit outdated.
Later, Jack joined the HEX community. On a YouTube program, the following comment jokingly asked, "Where is Jack Coin?" When will it launch? Jack thinks that Jack Coin must be a coin that can be obtained easily and equally, so in June and July, he began to think about this problem, then began to write a white paper, and finally released the project: XEN.
Jack is a typical Google engineer. He has a strong idealism color. As a veteran in crypto space, he has always advocated the spirit of "sovereign individuals". He may be very clear about the history of HEX, but the spirit conveyed by HEX touched him, so he joined the HEX community.
With in-depth understanding, Jack found the mechanism problem of HEX, but HEX also gave him great inspiration, which triggered him to design a better currency mechanism for the experiment. This experiment can become a tool to serve Jack's goal of creating more economic freedom, so XEN was born.
In the XEN project, if Jack is a person under the halo, Leonid Belyaev may be a hidden tycoon. Leonid not only released XEN code on git for the first time. He is also a major contributor to XEN code.
Leonid Belyaev, about 53 years old, Russian, worked in Russia before 2015. He has worked in Lanit and its companies for 10 years, and Cisco and Dell have worked for a total of 7 years.
Lanit is a leading IT company group in Russia with a successful history of more than 20 years. The group consists of various IT companies that provide a full range of IT services. It continues to expand its product range by implementing new cutting-edge technologies and the most needed solutions. In 2015, LANIT was listed as the top 3 IT company in Russia (RAEX, Kommersant). It was rated by Forbes as "the largest 200 companies in Russia" and Expert RA as "the largest 400 companies in Russia".
In the past 20 years, Leonid has mainly done sales management, project management, and technology development-related work for 2B.
Leonid Belyaev is a diligent thinker. In 2016, he mentioned crypto technology in his vision of the future television industry. After more than a year of thinking, in the spring of 18, he started to change the film ecosystem through blockchain technology.
However, Leonid Belyaev joined XEN after two failed start-ups in the crypto field, which is another attempt after his deep thinking on the crypto field.
In addition, the founders of Leonid and Jack migrated to the United States to start their businesses after living in Russia for many years. Their backgrounds are very similar, which may be another small reason for the two to get together.
Nicholas, a senior software engineer, is another contributor to XEN code. According to Nicholas's working background, he is a person who has worked with Jack Levin for a long time.
According to his tweets, his first content about XEN was the tweet he tweeted to Jack on August 21. Before that, he was on the PopCore team. Popcorn is a multi-chain renewable output optimization agreement, which belongs to the DeFi field. SofaDAO guessed that this person should belong to the consultant of both parties and the intermediary role of PopcornDAO and XEN.
The Reason Why XEN Goes Viral
The sudden appearance of XEN can be considered a breath of fresh air. Its value is based on your preference for time, and the number of like-minded people. You can get what belongs to you for free. At the same time, it also puts forward a new concept for the mining mechanism——"Proof of Participation".
According to the project white paper, the mining mechanism adopted by XEN is called Proof of Participation, with an initial value of 0. However, with the increasing difficulty of mining, the price of tokens will continue to rise.
There is no initial supply, no upper limit of supply, and users can mint coins for free. However, the project algorithm will give a rank (cRank) according to the "waiting time" set when users join the minting list, and determine the number of tokens minted according to this rank. The more people involved in minting, the more difficult mining will be.
To put it simply, user participation in the XEN system can be divided into the following three processes:
Participate in minting and get your rank (cRank)
Get your XEN token when it expires
Stake XENs to obtain rewards or sell them through Uniswap and other exchanges
In fact, if you carefully study the design mechanism of XEN, it is not difficult to find that its minting process implies the incentive method of inviting all employees. Only when more and more people in the back participate in the minting can people in the front get more rewards. According to the previous operation process of the capital pool, there will be a critical point in the operation of this model, and when no one enters, it will start to collapse.
Does XEN Safeguard Rights upon Landing?
In fact, XEN Token does not have any value. Its temporary popularity is largely due to its novel model and Jack Levin's participation. Of course, there are also some exchanges that make many people regard it as a new round of "highway to rich".
Objectively speaking, XEN should be regarded as a social experiment, in which the game between human nature and interests gives dull investment a different flavor.
On October 9, the KOL DiscusFish of crypto space publicly stated on the XEN rights group and Twitter that the project would return to zero every second in order to defraud gas fees. However, the data on the 10th showed that the gas consumption of the XEN Crypto contract ranked first in the appreciation, and the number of interactive addresses and ETH consumption kept hitting new highs. In the long bear downturn, it seems that everyone's FOMO mood is still high.
In fact, XEN is really like a Ponzi project with the “to pass the parcel” nature, because it is extremely dependent on the number of subsequent entrants. This is very similar to the previous GameFi. Those who arrive first may eat meat, and those who arrive later may only eat muddy soil.
Nearly 80% of XEN tokens are held by the top 100 interactors, and the mining difficulty of this project increases with the number of participants. As time goes on, will there be enough participants to support this project?
On the first day of the project launch, there is still 200U-400U profit for an address to interact with. The next day, the profit will be equal to the gas cost paid. After that, the entrants will either have to wait for a long time to issue coins or can only arbitrage through the secondary market risk.
Can XEN Bring the Dead Back to Life?
Within 3 days after the birth of XEN, the supply of XEN has expanded from 0 to more than 4 billion, which is a crazy expansion speed and is far greater than the buyer's power in the market. The XEN price also fell sharply, and it did not even last a day after MXEC was launched.
However, after passing through the previous LUNA depeg, the price drop caused by the crazy expansion of supply is tremendously terrible. There is another 99%. As long as the minting gate is still open, arbitrage space still exists, and the price can only go down. Even if LUNC closed its minting valve now, it has become a meme, and the market value may not return to its peak. For those institutions that have staked LUNA for a long time, the book value of LUNA in their hands has disappeared at the moment of supply expansion.
According to the on-chain data created by Dune user @sixdegree, the waiting period of addresses currently involved in minting is polarized. Meanwhile, 66% of the participating addresses are 0 based on the number of wallet transactions, which means that 66% of the participants are deal-hunter robots.
As Todd, a partner of NothingResearch, said: XEN, the 1.0 version of the standard social experiment, has created a token that anyone can come to pay for nothing. One game: delay in satisfaction (more than 300 days): the longer you wait, the more you receive; Meet immediately (1-3 days): the shorter the waiting time, the less you will receive; The common fault of social experiment 1.0 is that witch attacks are not considered. The deal-hunter can have 1,000,000, and the experiment will be difficult to continue if it receives them every day from one day to 300 days.
This design of XEN is very ingenious. It apportions the selling pressure of XEN tokens by receiving the waiting period and the penalty of receiving the period.
But this CX form is also criticized. When the heat is over, the real users involved will become rare; When there is little room for arbitrage, the deal-hunter is also reluctant to mint again; The secondary market participants are already in a weak position, and will not buy a token that has neither value nor meme at this time. With the end of the waiting period for more addresses, it is likely that profitable participants will be monetized directly, and those which have no profits will be forgotten as the commercial exploitation dissipates.
In this XEN event, the most impressive thing was the strength of Ethereum's economic model after Merge and EIP-1559, which also strengthened Ethereum's determination to long ETH. The FOMO caused by XEN Crypto alone destroyed more than 2000 ETHs in two days, and once let ETHs fall into deflation.
If it is in the bull market, the Ethereum ecosystem's prosperity will lead to more valuable applications of community FOMO, which will eventually feed back to the ETH price itself, enabling a more powerful Ethereum ecosystem.
On one hand, the crypto space has memories. Over the years, we have seen the sharp rise and fall of various currencies. On the other hand, the crypto space also has no memory, and history always repeats, because it is difficult for people to disobey instinct.
No one can predict how XEN will develop after a long staked period. Maybe XEN will finally find its own application value and realize the founder's macro vision, or maybe XEN is just another "rights protection project" on the way of easy touches to advancement.
No matter how XEN will develop, what remains unchanged is that ETH is really burned, and we will also pursue the next "XEN" as usual.
Author: Gate.io Observer: Byron B. Translator: Joy Z.
* This article represents only the views of the observers and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
🔑 Register an account with Gate.io
👨💼 Complete KYC within 24 hours
🎁 Claim Point Rewards