XAI & esXAI Emissions & Burning

The Maximum Total Supply of XAI and esXAI combined amounts to 2.5 Billion tokens.

Total Supply is the total amount of XAI and esXAI that exists at any given time, whether locked or unlocked.

Circulating Supply is the total amount of XAI and esXAI that exists and is unlocked (excluding any locked portion).

All of the gas fees paid in the Xai ecosystem are paid in XAI and burnt.

The daily Sentry node emissions of esXAI hinge on the current Total Supply of both XAI and esXAI combined. XAI Total Supply undergoes reduction through the burning of XAI as gas within the Xai ecosystem. esXAI’s Total Supply also undergoes reduction through the burning of esXAI during the redemption process (depending on user inputs).

The daily emission rate of esXAI remains dynamic, contingent upon the Total Supply of XAI and esXAI combined. Upon reaching key thresholds in Total Supply, esXAI emissions will automatically halve. Conversely, if the Total Supply contracts below the threshold of a halving event through burning, the emission rate of esXAI can increase to accommodate demand. These dual factors interact to establish a flexible and adaptive supply mechanism. This mechanism ensures enduring ecosystem rewards for the Sentry Keys, which solve key problems for the chain. Simultaneously, dynamic halving imposes constraints on the overall supply through negative pressure exerted on the quantity of tokens in circulation.

Once the Total Supply reaches approximately half of the Maximum Total Supply, daily emissions begin to decrease. The reduction continues each time the Total Supply increases by half of the previous threshold value. The basic Emission Tranches are as follows:

≤ 1,250,000,000	1,712,328.7671232900
≤ 1,875,000,000	856,164.3835616440
≤ 2,187,500,000	428,082.1917808220
≤ 2,343,750,000	214,041.0958904110
≤ 2,421,875,000	107,020.5479452050
≤ 2,460,937,500	53,510.2739726027
≤ 2,480,468,750	26,755.1369863014

…etc. This continues on forever.

85% of esXAI emissions support the essential work of Sentry Keys, ensuring the network's integrity. A remaining 15% is allocated to a gas subsidy node which is used to help create a gasless experience for players, thereby decreasing friction on chain and likely increasing transaction volume.

• Review the roadmap to see when this functionality is available.

• The first halving event took place on: 05/22/24.