Xian Network

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Economics of the Coin ​

The Xian blockchain introduces a unique economic model centered around its native coin, with a total supply of 111,111,111 coins that are initially minted. This finite supply, along with a detailed distribution strategy and a transaction fee mechanism designed for fairness and sustainability, forms the backbone of Xian's economic ecosystem. Here, we break down the economics of the coin, including its distribution, the role of transaction fees (stamps), and the mechanisms in place to ensure long-term viability and deflationary pressure.

Initial Coin Distribution ​

The distribution of the initial coin supply was carefully structured to align with the long-term goals of the Xian project and ensure a balanced allocation among stakeholders:

  • Founding Private Sale (5%): A portion of the coins was sold in a founding private sale, allowing early supporters and strategic partners to participate in the project's growth from its inception.
  • Public Sale (40%): The largest share of the coins were allocated for the public sale, democratizing access to the coins and ensuring a wide distribution among the community.
  • Team Allocation (20%): A total of 20% of the coins were allocated to the team, with 15% released over 5 years to incentivize long-term commitment and 5% provided upfront as a reward for their early contributions to the project.
  • DAO (35%): A quarter of the total supply was reserved for the DAO, funding community-driven development, governance initiatives, and other projects beneficial to the Xian ecosystem.

This distribution strategy ensures that the Xian project is supported by a diverse group of stakeholders, including the project team, its community, and investors, all of whom play a critical role in the platform's development and governance.

Transaction Fees (Stamps) ​

In Xian, transaction fees, known as stamps, serve multiple purposes: incentivizing validators, rewarding smart contract developers, and ensuring the sustainability of the DAO. The distribution of transaction fees is as follows:

  • Split Between Developers and Validators: Transaction fees collected are split between the deployers/developers of the smart contracts where the transaction fees were incurred and the DAO. This model not only incentivizes the development of high-quality smart contracts on the Xian platform but also ensures continuous funding for the DAO's initiatives.
  • Burning Mechanism (1%): To introduce a deflationary mechanism into the economy, 1% of the transaction fees (stamps) are permanently burned. This burning reduces the total supply of coins over time, potentially increasing the value of the remaining coins as the usage of the Xian blockchain grows.

Deflationary Pressure and Economic Sustainability ​

The decision to burn a fraction of the transaction fees introduces a deflationary pressure into the Xian economy. This approach is designed to balance the inflationary impact of the initial coin distribution and rewards distribution, ensuring the long-term economic sustainability of the platform. By carefully managing the coin supply and incentivizing the development and use of smart contracts, Xian aims to create a thriving economic ecosystem that supports developers, users, and validators alike.