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A Comprehensive Q&A on Staking in the Xai Ecosystem
https://medium.com/@xaifoundation/a-comprehensive-q-a-on-staking-in-the-xai-ecosystem-4407fdf2fff3
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Introduction: In the context of the continuous development of decentralized ecosystems, the new gaming ecosystem known as Xai has become a major competitor in the industry. This blog aims to reveal various aspects of the Xai ecosystem through a detailed Q&A session. We’ll explore topics ranging from the system’s probabilistic design to ongoing staking releases and governance plans.
Why are systems based on probability?
Xai is an Arbitrum AnyTrust chain where Sentry nodes verify data assertions on the chain every hour. Initially, the probability of receiving token rewards for Sentry keys was set to 1% in order to reduce the gas fee incurred for each victory. Over time, due to the law of large numbers, network rewards average out, ensuring that node operators receive consistent rewards while minimizing gas costs.
Why is automatic reward claiming implemented?
After 6 months, any unclaimed rewards will expire and be destroyed. This is to prevent emissions inflation on potentially abandoned Sentry nodes. Therefore, the system was originally designed to automatically claim rewards for nodes that are running normally. However, since each claim incurs gas fees, it is planned to optimize this process in March. (more below)
Why was staking introduced and what are its benefits?
Staking is a key element in many crypto ecosystems, facilitating community engagement, organization, and governance. Xai believes that staking is critical to its long-term success, providing additional network reward opportunities and helping the ecosystem mature. Staking has been planned from the beginning, and we believe that once the full plan unfolds, the community will be better equipped to help Xai grow into a premier gaming ecosystem.
Why is staking divided into v1 and v2?
Taking an iterative approach, Xai launched two versions of staking (v1 and v2) to gather user feedback and improve the pool mechanism. The community made it clear that its active participation influenced the product vision, emphasizing Xai's commitment to adapting to the community's perspective.
Why do rewards seem lower at the start of v1?
v1’s staking model increases the probability of winning based on your staking level, thus driving the motivation for staking. The result is more frequent but smaller rewards as you level up. This trade-off emphasizes frequency of rewards over size, creating a solid rewards program that in many cases, especially at higher staking tiers, results in greater overall rewards.
Why is v1 not widely accepted?
v1 was criticized for its top-heavy leveling system and insufficient consideration of user feedback before release. Xai responded by implementing a flatter reward system designed to address concerns until v2 was released in March, taking feedback into account on an ongoing basis.
What has been done to improve v1 and how long will this last?
Acknowledging the community's concerns, XAI has improved v1 with a more balanced reward structure. This adjustment is intended to last until v2 is released, with continued consideration of feedback and possible further updates to the leveling system and reward multipliers.
What are the staking limits for v1 and how will they be changed for v2?
In v1, staking capacity is determined by the number of keys in the wallet, increasing by 25,000 esXAI per key. This limitation is expected to persist in v2, making it clear that staking capacity is calculated per key rather than per wallet.
How does pooling in v2 change things?
Pooling in v2 introduces on-chain community building, aligning the incentives of key holders and esXAI holders with the incentives of joining the pool. The system allows pool owners to distribute rewards between themselves, key stakers, and esXAI stakers based on a percentage set by the pool owner.
Are there any gas optimizations in v2?
Yes, v2 introduces gas optimization through batching of participating assertions and pool claims. Larger pools will experience more significant optimizations, and users can accumulate pool rewards for flexible gas optimization.
When will v2 be ready?
XAI plans to release v2 in March, marking an important step in improving the staking experience.
Why does redemption take so long?
Inspired by the Camelot Grail, the redemption process encourages long-term thinking within the community, promoting ongoing engagement and commitment.
Will I receive additional rewards for staking?
XAI is actively engaging with projects interested in building on XAI to explore opportunities to earn project-related rewards such as airdrops and NFTs through pool participation. Many projects have shared their plans to reward stakers and key holders via social media. We believe these opportunities will become more abundant as Xai grows.
What is the governance plan for the rest of the year?
XAI plans to launch its first governance proposal for on-chain voting before the end of the year, aiming to decentralize the project and allow the community to participate in shaping its future direction.