Recap of AMA with Zac on Jan 19
Thank you for participating in the AMA session.
The live recording of the AMA session addressing questions and concerns by the community members at 10:00 am GMT+8 on January 19 can be viewed here: https://www.youtube.com/watch?v=FVAvbf6l1VE
Please find a summary of Zac’s answers below (some answers have been lightly edited for clarity and conciseness).
- Why should we trust XWallet? It’s new. Why can’t I hold NPXS/XEM in My Ether Wallet, or an exchange like Binance?
Staking is a mining-like process. Having the tokens on XWallet will allow you to mine new tokens, which will require it to be on the XWallet.
After the staking process has started on March 10, the conversion process will start in April or May, giving users the opportunity to choose and swap their NPXS or NPXSXEM tokens to f(x) tokens. This will be done on XWallet too.
- Why do we have to elect to choose to convert NPXS to receive 45% of the f(x) tokens generated?
We’re conducting a real conversion transparently. By actually doing a conversion process we make it transparent that we are not raising any funds because we’re reducing the overall supply of NPXS. This is the fairest way to ensure we’re not doing any fundraising, directly or indirectly. The total supply of NPXS will be reduced, perhaps drastically, through this process.
- Why is there no defined ratio for NPXS/NPXSXEM conversions to f(x)?
After the staking process begins on March 10, in April or May we will begin conversions, allowing you to exchange NPXS or NPXSXEM for new f(x) tokens.
The reason we gave no exact figure is that the conversion process refreshes everyday and is fluid. Every day there are millions of f(x) tokens available for conversion which are distributed dynamically depending on demand.
For e.g. let’s say Bob elects to convert 1 NPXS and is the only person converting on that day, he will get all of the f(x) available for conversion.
But if Bob and Alice each stake 1 NPXS then they will share 50% of the tokens.
If Bob, Alice and Charlie each stake 1 NPXS and 1 NPXSXEM they will share 33% of the tokens and so on.
What if so many people want to convert? We have a low bar figure, which is we want to guarantee that if there are a lot of people trying to convert, the daily ratio cap you will get (days 1–30) is 1:500, (days 30–60) 1:600 and (days 60–90) 1:700.
Once you decide to convert you will receive 12% on the spot and then 8% every month until the conversion process is finished in one year.
- Since miners are involved can the Function X chain be 51% attacked?
Function X uses Practical Byzantine Fault Tolerance for consensus. Any blockchain that uses a consensus algorithm and which is decentralized by its very nature can be attacked. The beauty of blockchain is to create and encourage a decentralized ecosystem with more nodes around the world meaning that the more nodes we create around the world — including every XPOS and XPhone — the more difficult it is. It’s many times harder to attack a blockchain with 10,000 nodes than 5000. Pundi X is uniquely well equipped to build a hack-resistant chain.
- Will NPXS and NPXSXEM staked in the XWallet be eligible for the monthly unlock until December 2020?
Yes, they will.
- When can we expect a fully functioning blockchain platform?
We are looking at Q2 to have the testnet out.
- Is it really necessary to have two tokens? Why not merge NPXS into f(x) coin?
NPXS is meant for payments; f(x) is a native token for a blockchain.
Just like Bitcoin, f(x) will need miners to come in, proof of service to come in. This is the blockchain model, which f(x) will also implement. NPXS instead has tokens deducted from supply.
If we were to merge the two they couldn’t work together as they operate in contradictory ways.
- How soon will the token removal happen after conversion?
We will execute the token removal within 90 days. If 20 percent of NPXS is converted to f(x) then 20 percent will be removed from the total NPXS supply in 2019.
- The announcement says the Token Generation Event will deliver 65% of all tokens to NPXS/NPXSXEM holders, but the website says the TGE represents only 20% of overall supply. How do we account for this?
Just like Bitcoin, f(x) supply will increase but over 15 years. This is very similar to other blockchains, such as Ethereum, ZCash, Cardano — all which require a consensus mechanism and the influx of miners into the ecosystem — require a model for increased supply to encourage the mining of new blocks. Whether it’s transaction verification, data storage etc., and all have their own models for achieving it.
This is how we designed the token mechanics, to reward and incentivise those who want to contribute to the ecosystem.
- When will the iOS version of XWallet be available?
The iOS version has been tentatively approved by Apple. Most countries have been approved but there are a few countries left pending which we are in discussion with Apple to get them through. We are targeting to get the iOS version to be available as many as possible by March 10.
We’re going to try to get a web version out by March 10 too.
- Why don’t we have a 1:1 swap?
The f(x) blockchain will require a completely different token allocation over a different timeline.
Over 15 years we will need to attract service providers, nodes, miners etc. etc. We believe that we want to strike a balance to allocate tokens to the benefit of current holders.
The team will not convert any of its NPXS to f(x). We’ll be holding our NPXS token and focusing on the deployment of XPOS. More than 5500 XPOS have been shipped with more due next week. Some 50,000 XPASS cards have been activated, making it the most activated crypto card in the market.
- There is no public sale or pre sale for f(x)
- All converted NPXS/NPXSXEM will be taken out of total supply
- It’s entirely optional about whether you want to stake or convert
Function X will be a game changer. It paves the way for Blockchain 2.0 whereby everything that can be decentralized will be decentralized. Everything, from making phone calls, to texts, to data, to applications will be decentralized. We believe that the current blockchain model allows people to send financial services from recipient A to recipient B. Why don’t we take this to make it possible for other uses, such as browsing online, sending data and making phone calls and much more.
Our vision is to see the XPOS, XPASS cards and XWallet power commerce on the Function X blockchain.