Learn about $XPNET, the native XP.network token
$XPNET is your key to the full functionality of XP.network, the first Polkadot-based platform where you can build NFT dApps without writing a single line of code. Here’s what you should know about our native token, its use cases, and allocation.
$XPNET use cases
We are currently preparing for the $XPNET pre-sale (you can sign up here), so we thought it’s time to give you an overview of the tokenomics of XP.network. Let’s start with the main functions of our native token:
- NFT dApp deployment fees;
- Transaction fees generated by the dApps built using XP.network tools (such as listing NFTs on a marketplace);
- Fees when migrating to another chain or adding more chains;
- Security deposits for bridge nodes (meaning the bridges that will link XP.network to other blockchains, such as Elrond and Cardano);
- Staking (for node operators and delegates);
- Rewards for stakers, delegates, and bridge node operators;
- Governance (voting).
As you can see, we didn’t try to invent the wheel here: $XPNET applications are very similar to those of other tokens in the Substrate ecosystem. And that’s totally fine, because these are well-tested use cases that help add value to the ecosystem and actually work.
$XPNET allocation
A total of 1,000,000,000 $XPNET will be issued, to be allocated as follows:
As you can see, we plan to use 33.5% of all tokens for the seed, private, and public sale stages, plus 5% as initial trading liquidity. The 18.5% reserved for the seed stage may seem excessive at first glance, but a lot of institutional investors have expressed interest in XP.network, so we hope to cover most of our financial needs very early.
At the same time, the 5% reserved for the public sale is higher than what many other projects in the DeFi/NFT space are going for these days, but we believe in giving more users out there an opportunity to buy $XPNET.
The vesting schedule
When designing the vesting and distribution schedule, we tried to carefully balance two things: the long-term stability of $XPNET, on the one hand, and the natural desire of any investor to realize their gains. If you unlock buyers’ tokens too quickly, you end up with a sell-off and a price dump. On the other hand, keeping the tokens frozen for too long might scare off many potential investors.
In our model, the team and the advisors will see their $XPNET allocations frozen for 9 months and then released gradually over the course of 36 and 12 months, respectively. Thus we can give the token buyers assurance that there will be no dump on our side.
The seed investors will gain access to the first batch of $XPNET two months after the token generation event, and the gradual release will last for 12 months. Those who buy in during the private sale will have to wait for just two weeks, though it will take 9 months for all their tokens to be unlocked.
If you manage to join the public sale, you won’t have to wait at all. However, considering how oversubscribed most major IDOs are these days, you should probably join the pre-sale if you want to be sure to get some $XPNET.
Have more questions about the $XPNET tokenomics? Ask them in the official Telegram chat — we’ve just unmuted it! And of course, follow XP.network on Twitter, where we post not only our fresh updates but also the most interesting news from the NFT world.
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