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— Reboot (@rebootgg_) April 3, 2024
How staking works on Xai
As an incentive to keep users on the network and reward them for supporting its consensus model, Xai began rolling out staking across two waves.
Version one allowed owners of Sentry Nodes—which are responsible for monitoring and flagging blocks on the Xai network—to stake up to 25,000 esXAI they hold. Then, in April, version two was rolled out, which opened the gates to any holder of esXAI.
Now, staking pools can be created by Sentry Key holders—the NFT is used to operate a Sentry Node to support the network—and then anyone can stake esXAI in the pools that have been created. Pool operators can determine the distribution of pooled network rewards, specifying the percentages allocated to themselves, Sentry Key-holding stakers, and standard esXAI stakers.
Xai also introduced a tier system where the higher the tier of a staking pool, based on the amount of esXAI staked, the greater the reward multiplier for the staked Sentry Keys.
For example, if 500,000 esXAI is staked, then the Sentry Key will see a 3x reward multiplier. This starts at \"bronze\" with no bonus reward, but climbs all the way up to \"diamond,\" which has a 6x reward multiplier.
The future
Xai is like an onion: It has layers. As a layer-3 blockchain, it attempts to improve on the layers that came before it to optimize the gaming experience. Peel back more layers and you find a robust token and staking system with governance in layers to come.
Of course, the one layer that’s still a bit thin as of this writing concerns the actual games themselves build on top of the network. But based on the announcements thus far, it appears those games are coming.
Edited by Andrew Hayward