What is XEN Cryptocurrency?
XEN represents a social mining initiative rooted in a Proof of Participation (PoP) consensus mechanism. Any cryptocurrency enthusiast can link up compatible web3 wallets and begin minting XEN tokens on the Ethereum network. The tokenomics of XEN is contingent on user volume and the minting timeline, with rising user counts causing increased minting difficulty and a reduction in supply.
Crucial Points of XEN Cryptocurrency:
Ever since its introduction on October 8th, 2022, XEN crypto has been a constant fixture in the top five gas consumers on Etherscan, thereby causing Ethereum emissions to decrease and rendering the currency deflationary temporarily.
Users can mint XEN on Ethereum by simply covering the gas fees and deciding on a specific waiting period.
At its height, nearly half of Ethereum’s block size was taken up by the new crypto project XEN, which dominated the burn leaderboard, increasing ETH gas prices. Since XEN’s launch, Ethereum’s supply has been on a steady decline, surpassing its current growth rate of +0.04%, as seen on ultrasound.money.
Who made/invented XEN?
XEN is the brainchild of the Fair Crypto Foundation, with backing from Jack Levin, supposedly one of the pioneering employees at Google. Levin’s vision for XEN, or the “people’s token”, is rooted in key principles such as “self-custody, trustless consensus, and decentralization”.
The Ripple Effect of XEN on Ethereum
Following the London Fork, the base fee for Ethereum is decided by network activities and subsequently burned. Also, the rewards for validators post-Merge are made up of the tip fee (the amount paid to validators for prioritizing your transaction validation) and the block subsidy (fixed at 2 ETH per block and divided equally amongst validators).
With a portion of the gas fees being burned and thus removed from circulation, the increased interest in XEN has left a noticeable dent in Ethereum’s emissions, rendering the cryptocurrency deflationary for now. This comes in the wake of the Merge, marking Ethereum’s transition to a Proof-of-Stake (PoS) mechanism, resulting in a significant decrease in the rate of Ethereum’s supply.
Special Features of XEN Cryptocurrency
Unlimited supply: Contrary to Bitcoin’s cap at 21 million, XEN boasts an unlimited supply, meaning XEN minting can continue indefinitely.
Minimal computational power for XEN mining: Unlike Bitcoin mining, which requires high-end equipment and substantial power consumption, you can mine XEN crypto by merely linking your wallets to the XEN dApp (decentralized application).
No limit on wallets: XEN permits you to create as many wallets as desired, provided you’re willing to cover the gas fees.
How to Mint XEN Crypto
In likeness to Bitcoin, the XEN cryptocurrency isn’t tied to your identity, allowing for minting as many tokens as desired. However, bots can also mine XEN. To counter this, XEN mandates users to link their web3 wallet to the XEN dApp and claim their cRank.
What is the Purpose of XEN Crypto?
As stated in XEN’s lite paper, the aim of XEN is to evolve into a community-driven crypto asset that encapsulates the core fundamentals of blockchain technology. The XEN team perceives most cryptocurrencies as polarized, with high-market cap coins being overbought and low-market cap assets being largely ignored. XEN attempts to address this by implementing fair minting of XEN tokens, devoid of any pre-mining activities.
Does XEN Hold Value?
Although the value of XEN has been experiencing a steady decline, it has witnessed a surge in April 2023, escalating by over 380% since April 1st. Factors contributing to this could be the growth of the Xen ecosystem, with protocols like DBXen (DXN) and Fenix facilitating the minting of new tokens through burning XEN, subsequently limiting the supply of XEN.
Is XEN Crypto Safe?
While XEN might bear some resemblances to a pyramid scheme, it does possess key differences. For instance, the founder of XEN isn’t anonymous, and XEN doesn’t necessitate any investment beyond covering Ethereum’s gas fee. XEN might not represent a viable investment opportunity, but it serves as an intriguing social experiment. Users can opt to participate if they find the minting fees and waiting period reasonable.
Concluding Thoughts
The XEN cryptocurrency, with its unlimited supply and Proof of Participation (PoP) consensus mechanism, offers users an easy way to mint new tokens by simply paying the Ethereum gas fees. Even in April 2023, XEN Crypto continues to lead Etherscan’s gas guzzler leaderboard, along with recording a 181% price increase since January 2023, making it apparent that XEN isn’t going anywhere for now.
This article solely serves educational purposes and shouldn’t be construed as investment advice or an endorsement of the covered protocols. Always conduct thorough research prior to investing in any protocol.