XIP-1 original text: https://discord.com/channels/870683519230308372/1339330918980128768
1. Background: CitizenX and the goal of decentralization
This proposal was put forward by CitizenX, one of the earliest and largest supporters and investors of the Xai ecosystem. CitizenX believes that the core value of Xai lies in true community governance and robust decentralization, so it proposed the XIP-1 proposal, hoping to establish a phased DAO governance framework for the Xai ecosystem, so that every XAI and esXAI holder can truly participate in decision-making.
Personal opinion:
In the blockchain field, since decentralized governance often faces a trade-off between governance efficiency and security, many projects are struggling between "complete decentralization" and "centralization". The phased governance route proposed by CitizenX this time takes into account both security and long-term ecological development, providing a more robust path for the Xai community, which is worth in-depth understanding and discussion.
II. Main contents of the proposal (translation and key points)
The following article will extract and translate the main contents of XIP-1, striving to enable the Chinese community to understand the essence of the proposal as accurately as possible.
1. Phased DAO Governance
Target:
The proposal divides Xai’s community governance into three stages, gradually transferring governance rights from the foundation to the DAO.
In the first phase (Phase 1), the foundation retains more decision-making power to ensure a steady transition.
Phase 2 and Phase 3 will further delegate more decision-making power to the community in the next 24 to 48 months, ultimately forming a highly decentralized governance model.
Why in stages?
Avoid failure cases caused by too-rapid decentralization and lack of security measures (such as the hack of The DAO in 2016, the community trust crisis encountered by Fei Protocol in 2021, and the sudden "founder resignation" storm of SushiSwap in 2020).
Through a step-by-step approach, we will continuously improve the proposal process, governance mechanism and compliance while ensuring the stable operation of the community.
Personal opinion:
It is a very rational approach to divide governance into multiple stages. Whether it is an old DAO or an emerging project, it is necessary to first lay a solid institutional foundation, then gradually decentralize power and listen to the voice of the community. If the overly idealistic "complete decentralization" is not fully prepared, it will often encounter the dual test of security and governance efficiency.
2. Voting and Proposal Mechanism
Voting Rights:
All addresses holding XAI or esXAI tokens (including staked esXAI) on the Arb One network have voting rights.
The more tokens you hold, the more voting power you have corresponding to the weight; you can freely delegate your voting rights to others.
Proposal Process:
In the first phase, the community can discuss ideas in the Xai Discord #ecosystem-discussion channel.
The Foundation will periodically select valuable proposals from the discussion for formal submission (i.e. "Xai Improvement Proposal" or "XIP").
The proposal will be put to a public voting site for voting.
Voting follows the “majority rule”, requiring more than 50.01% of the voting rights to pass, and at least 1% of the voting rights must participate to be considered valid (“quorum”).
Timing design:
After a proposal is published, there will be a 3-day "delay period" for the community to understand, communicate, and delegate voting rights.
There is then a 7-day “voting period” for the official vote.
If the proposal is passed and requires on-chain execution (such as fund transfer), there will be a 3-day "time lock" to allow sufficient response time for execution.
Binding force of proposals and the Foundation’s veto power:
Once a proposal is passed, it will be legally binding on the foundation and the foundation must implement it within a reasonable time frame.
If the proposal is illegal, affects the compliance of the exchange listing, or violates the contract signed by the Foundation, the Foundation may terminate its execution.
The Foundation also reserves the final veto power to prevent proposals that seriously conflict with ecological strategic goals.
Personal opinion:
While maintaining community governance power, compliance and force majeure clauses must also be considered, which are common practical requirements when DAOs connect with the traditional world. This proposal ensures that decisions have full transparency and execution buffer periods by setting up "delay periods" and "time locks", which can effectively reduce security and compliance risks.
3. Ecosystem incentives and token distribution
Gas subsidy and token recovery mechanism:
It is proposed that in the future, after the permissioned Gas solution is completed, the subsidy amount exceeding 10 million XAI will be transferred to the Foundation Treasury for unified management so as to realize Gas subsidies in "eligible applications and games".
The unused portion of XAI can also be used to incentivize developers and the community.
Genesis Participant Incentives (50 million XAI in total):
25 million XAI will be used to reward early adopters of Xai Vanguard: Genesis by verifying their Steam account on the Xai Play platform.
Another 25 million XAI will be used for subsequent events, accelerators, and other activities to reward continuously active community members.
Any remaining tokens within 6 months will be redistributed to all community members.
These incentive funds will not exceed the total upper limit of XAI, but will come from the token pool that has already been allocated to the community.
Ecosystem expansion (100 million XAI):
Another 100 million XAI will be allocated from the community allocation to incentivize AI-related projects and game development:
Supports AI projects such as Raijin.
Support more games to access Xai Play.
Financing and marketing third-party games.
Community initiatives such as DePin, NodeFi, etc.
These tokens are for community use only and are not used in the day-to-day operations of the Foundation.
Token Buyback Program:
The Foundation will repurchase XAI regularly to improve market liquidity, provide support for market makers (MM), and maintain project reserves and long-term stability.
The tokens obtained from the repurchase will be mainly used for liquidity provision, developer incentives and community-driven programs; if necessary, some of them may be resold to support the foundation's operational needs.
Personal opinion:
In DAO governance, how to use and distribute tokens is crucial to community development. The proposal highlights the importance of buybacks and incentives, which not only enhances market stability, but also provides financial support for emerging areas such as games and AI, indicating that the team's strategic focus is not limited to blockchain games, but also focuses on the broader prospects of AI.
4. Expanding the US market and voting platform Agora
US Market:
The proposal supports the Foundation to promote the listing of XAI on a compliant exchange in the United States, laying the foundation for the global development of XAI.
Agora Platform:
Agora will be used as a decentralized governance tool to unify the proposal and voting processes, making it easier for community contributors to submit ideas, follow up on discussions, and vote.
Personal opinion:
Compliance is one of the main signs of maturity of blockchain projects. Whether it can be successfully launched in the US market is crucial to XAI's subsequent global influence. The introduction of the mature governance platform Agora will help enhance the community's visibility and transparency of the voting process and proposal management.
3. Summary and Outlook
Proposal highlights:
Establish a phased governance route from the foundation to the community to avoid the security and compliance risks that may arise from “one-step” decentralization.
Provide XAI and esXAI holders with voting, proposal and delegation rights, and retain a moderate foundation veto mechanism.
It is planned to invest a large amount of XAI (a total of 150 million) in community development, including early user rewards, support for games and AI projects, and buyback stabilization of the market.
Through compliant listing on U.S. exchanges and adoption of the Agora platform, we will further enhance our global influence and governance transparency.
Next step:
If this proposal is passed by a majority vote (>50.01%) and reaches a statutory participation rate of at least 1%, the Foundation will implement the above measures in batches according to the proposal requirements.
This not only marks the official start of Xai DAO governance, but will also lay a solid foundation for the Xai ecosystem to further expand into artificial intelligence and accelerate the prosperity of the gaming ecosystem.
4. Personal Observations and Reflections
The feasibility of phased governance in community governance
This proposal has fully learned from the lessons of the early DAO failures and has more robust arrangements for governance, security, and legal compliance, which is worth learning from for other projects.The potential of AI and gaming integration
Xai has always been known for its gaming sector, and this proposal further emphasizes the expansion of the AI ecosystem. This strategy will not only enrich Xai's application scenarios, but also attract a wider range of developers and user groups.Comprehensive consideration of repurchase and incentives
The proposal closely combines "token value management" with "community empowerment" to maintain token stability through repurchase and then feed these resources back to active ecological projects to form an endogenous growth cycle.Community Responsibilities and Opportunities
Finally, I would like to remind the Chinese community: With the passage of the proposal, the XAI and esXAI tokens in your hands are not only assets, but also carry voting decisions and proposal responsibilities. I hope that more community members can actively participate in Discord discussions, put forward excellent suggestions, exercise voting rights, and contribute their professional insights to make Xai's decentralization path more healthy and vigorous.
In general, XIP-1 is not only a phased decentralized governance roadmap, but also a comprehensive development plan that includes games, AI, compliance, and community incentives. We look forward to more Chinese community voices joining in and jointly building a stronger Xai ecosystem!
More information:Game public chain Xai: Binance Square database
