The Xai gaming network, built on Arbitrum-based Ethereum layer-3 technology, has introduced staking pools. Now, XAI holders of all sizes can earn rewards through this new feature.
Xai Boosts Staking Rewards
The Xai Foundation, which oversees the development and operations of the Xai layer-3 gaming network leveraging Arbitrum scaling technology within the Ethereum ecosystem, has introduced a new staking pool system. This system is designed to incentivize and reward users who actively engage with the network and contribute to its growth and stability through staking their XAI tokens.
The Xai Foundation manages the Xai gaming network, which operates as a layer-3 solution on Ethereum using Arbitrum scaling technology. To encourage user participation and support network operations, the foundation has launched staking pools. Staking involves users locking up their XAI tokens in these pools to earn rewards, promoting network security and growth while offering token holders a way to generate additional income based on their participation. This initiative is part of the foundation’s strategy to foster community involvement and enhance the overall ecosystem of the Xai network.
Xai Staking Pools and esXAI Token
The Xai staking pools offer a mechanism for XAI token holders residing in eligible regions to stake their tokens collectively in a pool, enabling them to earn rewards based on their participation. With the latest update, a new token called esXAI has been introduced, which represents the XAI tokens staked in escrow. Users have the option to convert their XAI tokens into esXAI tokens and then stake them to actively participate in the staking process and receive rewards.
Staking pools are initiated by Sentry Key owners who have undergone know-your-customer (KYC) procedures and operate nodes supporting the network infrastructure. These pool operators have the discretion to determine the distribution of rewards from the staking pool, specifying the percentages allocated to themselves, other Sentry Key stakers, and esXAI stakers. This framework allows for a structured and transparent management of staking rewards within the Xai network, promoting network security and incentivizing user engagement.
Staking Pool Tiers Based on esXAI Stake Amount
The reward multiplier for staked Sentry Keys in a staking pool increases with the higher tier of the pool, which is determined by the amount of esXAI tokens staked. The Xai Foundation aims to promote “collaboration and competition among pools to attract stakers and climb the reward tiers,” as stated in a release. This strategy is designed to incentivize participation and enhance engagement within the Xai ecosystem.
In simpler terms, the more esXAI tokens that are staked in a staking pool, the higher the tier of that pool becomes. As the pool’s tier increases, the reward multiplier for staked Sentry Keys also increases. The Xai Foundation hopes that this setup will encourage different staking pools to compete and collaborate with each other to attract more participants and move up to higher reward tiers. This way, more people get involved in staking and supporting the Xai network, which benefits everyone involved.
The Xai Foundation introduced staking rewards in February, and today they have enhanced this feature by launching staking pools along with additional functionalities.
“We are pleased to introduce staking pools to the Xai community,” stated Soby, a core contributor to Xai. “This upgrade reflects our commitment to delivering excellent value and rewards to our users, while also ensuring the continued health and success of the Xai network.”
What could be the impact of Introducing Staking Pools in the Xai Ecosystem?
The introduction of staking pools in the Xai ecosystem is poised to have a transformative impact on the community and network dynamics. Staking pools provide Xai token holders with a collective mechanism to stake their tokens, contributing to network security and decentralization.
This incentivizes user participation by offering rewards, which can lead to increased engagement and activity within the Xai community. Users staking their tokens in these pools not only earn passive income but also play a crucial role in the governance and operation of the Xai network.
The implementation of staking pools also signifies the Xai Foundation’s commitment to enhancing user experience and fostering network sustainability. By offering expanded functionalities and rewards through staking pools, the foundation aims to attract new users and investors to the Xai ecosystem.
This could lead to a broader adoption of Xai tokens and increased liquidity in the network. Moreover, the introduction of staking pools promotes collaboration and competition among participants, which could drive innovation and efficiency within the ecosystem. Overall, the impact of staking pools extends beyond financial incentives, contributing to the overall growth, stability, and decentralization of the Xai network.