XinFin Comes Around With Prominent Changes With Mainnet Launch
By: Xinfin Xdc Hybrid Blockchain Network
Tags: Mainnet Launch, Masternodes, Blockchain, Mainnet, Xinfin

XinFin Comes Around With Prominent Changes With Mainnet Launch

XinFin Mainnet goes live on June 1, 2019. And, with the mainnet launch, XinFin is all set to introduce some prominent changes in XDC token allocation and hedge pool mechanism.

XinFin community will also see considerable changes being made across the whole XDC ecosystem including token swap, wallet private key access, masternode setup, and staking, new supply release, side chain or private network setup, burning of XDC, etc.

Masternode Bounty Program:

XinFin offers the first and one click Masternode deployment. This is an easy and simple solution for setting up a Masternode and earning XDC, allowing you to operate on XDC protocol. By setting up a Masternode the decentralised blockchain network is able to be self-sustainable. This provides for a trusted and scalable decentralized network infrastructure which promotes stability and reliability throughout the network.

As a reward for participating, every Masternode will be offered incentives as well as a special bonus bounty upto $900 USD worth XDC for hosting Masternode up to the 31st August 2019.

If you would like to learn more about how you can setup XinFin Masternode, you can take a look at our guide and download the latest release on Windows, Linux, and MacOS. For further details, you can also check out our Apothem Network (Testnet) and XinFin MainNet.

Let’s take the new changes introduced by XinFin Network, one by one:

Change 1

XDC Token Allocation

XinFin had already notified the community through a disclaimer in their original white paper, that the token allocation is subject to change based on the institutional participation to facilitate a seamless trade and financing capability and liquidity support. As per their original white paper, a total of 100 billion XDC tokens were created on the XinFin platform. The total token supply was limited and locked which added certainty on the XDC supply. XDC ecosystem never had any concept of mining from the beginning as all the tokens were pre-mined. So, in the case of XDC tokens what matters at any point is the current ‘available’ supply of XDC on the market, also referred to as ‘circulation’.

As Per Original White paper

Total Supply: 100 billion

Founders & Core Team Allocation: 25 billion

Ecosystem Development: 15 billion

Pre-placement: 10 billion

Masternode (Ecosystem Participation) Incentive:32.5 billion

Hedge Pool: 10 billion

Social Cause: 5 billion

Contingency: 2.5 billion

XinFin Network reduced the total supply allocation to the following to run a robust ecosystem at the time of mainnet launch:

Total Supply: 37.5 billion (reduced by 62.5 billion from the original allocation of 100 billion)

Founders & Core Team Allocation: 15 billion (reduced by 10 billion from the original allocation of 25 billion)

Ecosystem Development: 10 billion (reduced by 5 billion from the original allocation of 15 billion)

Masternode Incentive: (reduced from the original allocation of 3.2 billion/ year to 87.6 million/year)

Pre-placement: 10 billion

Hedge Pool: 0 (reduced from the original allocation of 10 billion)

Social Cause: 0 (reduced from the original allocation of 5 billion)

Contingency: 2.5 billion

Change 2

Masternode Incentive

XDCs are given as a reward to masternode hosting institutions and as incentives for the community participants on the platform and governance.

After Mainnet Launch

Currently, masternode incentive is approximately 87.6 million which is much lower than the previous estimate 10% cap of 3.2 billion/year.

We will be happy to support you and onboard you as a masternode holder with rights to participate in governance. Please join slack or telegram channel to get quick support on setup.

Telegram Community: https://t.me/XinFinDevelopers

Slack Community: https://xinfin-public.slack.com/messages/CELR2M831/

Change 3

Ecosystem Development Pool

As per the original whitepaper, the tokens from this pool were to be utilized to fund incorporations that support the ecosystem development for XinFin. This supply was locked and a maximum of 2.5% of this supply was to be released every year.

Before Mainnet Launch

Ecosystem development pool has been reduced to 5 billion from the original allocation of 15 billion.

After Mainnet Launch

Ecosystem development pool which is reduced from 15 billion to 10 billion will be spent as per the following plan:

Future Development: 5 billion

Admin/Foundation (XinFin Fintech): 2 billion

TradeFinex Tech: 2 billion

Alphaex Labs Ltd: 1 billion

Change 4

Vesting Release and new supply within XinFin Network

Before Mainnet Launch

As per the original white paper, 2.5% and 1% of the XDC tokens allocated for ecosystem development and founders were to be released every year.

After Mainnet Launch

Now, whatever tokens are locked for founders, 3% of the tokens will be released every year. Apart from the 3% as vesting period release from the founder holding, masternode holders will be incentivized with XDC tokens based on the number of transactions on XinFin Network. We are estimating new token generation at the rate of 87.6 million/year from the network.

Change 5

Hedge Pool

Hedge pool ensured that participants received agreed fiat currency value based on agreed conditions, irrespective of the XDC token fluctuation.

Before Mainnet Launch

As per the original white paper, the 10 billion token supply was to be used for hedging the commerce between financiers, buyers, and suppliers against changes in the XDC token value and for any settlement losses arising due to fall in the value of underlying XDC token. This supply was locked and up to a maximum of 5% was to be released every year.

After Mainnet Launch

The hedge pool token allocation which was 10 billion initially, has been reduced to 0. The reason behind is: XinFin will now work with smart contracts similar to Maker DAI-grade smart contract which will provide hedging and price stability through underlying stable smart contracts token (XRC20) which is pegged against the value of XDC. XinFin Network will use XDC from the existing supply in the open market and will not be working with any new supply of tokens.

Change 6

Social Cause

Before Mainnet Launch

As part of its corporate social responsibility, a portion of the XDC amount i.e. 5 billion was to be utilized for philanthropic activities and support several social causes to empower individuals and communities. The supply was locked and was to be released on a need basis.

After Mainnet Launch

With the mainnet release, the 5 billion token supply allocated for the social cause has been reduced to 0 as this might affect the XDC ecosystem. The social cause funding will be coming from the open market supply of XDC which will be used for building a sustainable future for all.

Change 7

Decentralized wallet with Private key access

Since now XinFin network is moving towards its mainnet launch, its new mainnet XDC token will be swappable against old XDC and XDCe tokens. XDCe will continue to get ERC20 liquidity and will act as a bridge which will connect various utility DApps from ERC20 network.

Before Mainnet Launch

Earlier, XinFin used to manage a centralized key store where it used to store the private keys for all the wallet users. Wallet users used an email id and password to login into the wallet. This wallet had provision for restoring password from the custodian.

After Mainnet Launch

With the new mainnet launch, wallet users will have full access and control over their private keys. XinFin will not maintain any centralized database of private keys. Users will need a private key and password to access their wallets. However, at the same time, it will be token holders’ responsibility to store the private key at a safe and secure place. Token holders may lose their tokens if they don’t store their private key at a safe place.

Note: New XDC Wallet is going to be fully decentralized and will provide full control over the private key to the user. Users will have to be careful about storing the private key to protect XDC coin. There is no option of restoring/recovering the private key, in case of users lose it.

Web and mobile wallet links are available at http://xinfin.network (getting live from June 1, 2019).

Meanwhile, you can access test Wallet at http://apothem.network

Other Important Community Updates:

Token Swapping on Alphaex

XDC token being a fork of the quorum, was a part of quorum network and XDCe token was an ERC20 token. Both the token were 1:1 swappable on Alphaex exchange. Current XDC wallet and tokens are going to be disabled and burnt as soon as the user swaps token to the new livenet.

Masternode and XDC Staking

Recently, XinFin has introduced staking function in ecosystem participation incentives in which a masternode holder will have to stake 10 million XDC for setting up every masternode. Anyone including reputed high stakeholders, technology partners and authorized and regulated institutions can host a masternode by staking and become a part of governance called as validators. The validators will get incentivized for running and contributing towards the network consensus.

XDC Burning Plan

25% net profit (from the admin company) will be burnt by way of buying from the open market

To set up a side chain or private network setup, enterprise or user will have to burn 10 million XDC (after buying from the open market) with each private subnetwork set up

The Need For Side Chain / Private Network Setup

XinFin sees a huge potential of the side chain and interoperability setup with various blockchain networks like R3 Corda, Oracle, Hyperledger, ETH, BTC, XRP, Stellar, EOS, Tezos, Cosmos, and Tron, etc. Every side chain or private network setup needs to burn 10 million XDC to get access to the private chain facility.

The Roadmap Ahead

After the successful launch of mainnet, XinFin Network plans to:

work towards making XDC token more aligned with real-world utilities. This will be done by connecting the XDC utility protocol with various other production systems make XDC ecosystem more liquid and transparent. XinFin Network will be adding XDC to more and more regulated exchanges make XDC tokens securer. The network that has always ensured the security of XDC tokens for its wallet users will be adding regulated custodians and hardware wallet to store XDC

Benefit from XinFin Fintech Admin / Foundation

XinFin Fintech admin/foundation will be taking care of maintenance, masternode network and coordination with the community for the further enhancement of the network protocol.

Benefit from TradeFinex

TradeFinex enables liquidity of various financial instruments. All bridges and applications are powered by XDC Protocol. Further, the consortium will help to make protocol more compliance and government-friendly.

Benefit from Alphaex

Alphaex will provide token swapping and enable liquidity against various token pairs like USDC to add value to various use cases run on XinFin network.

Benefit from Circle Partnership

The partnership allows TradeFinex to trade various financial instruments against regulated stable coin USDC.

Few other FAQs received from the community members

1) Who is the biggest token holder of XDCe holding over 60% of supply?

The 60% of supply currently is in custody of XinFin Admin account and it has been locked ever since it has been created.

2) What is this 60% supply for and what will happen to it after mainnet launch?

When ERC20, the swappable version of XDC was deployed, it was envisioned that both XDC and XDCe may need to co-exist for some time atomically linked to each other.

This was mainly because:

Hybrid chain: XDCe on ERC20, XDC on quorum, and XinFin mainnet token provides direct interoperability for XDC with ethereum ecosystem Liquidity: XDCe (ERC20 token) gets much easier access to liquidity as exchanges charge almost 2–3 times more for the integration of a new chain

After mainnet launch, the 60% supply will still stay locked.

3) Is XDC to XDCe swap mechanism instant, delayed, manual or automated/atomic swap. Also, can we view code? Where and how is swap made on a technical perspective?

The XDC to XDCe swap mechanism is automated. No, you cannot view code. Currently, the swap is made through Alphaex exchange only. We are in discussion with other exchanges for supporting the XDC on mainnet.

4) Will the mainnet release change the XDC tokens already held by users? Are the founder tokens swapped to XDCe or not?

No, the mainnet release change will not change the XDC tokens into XDCe (or vice versa). They will still remain XDC. None of the founder tokens have been swapped to XDCe.

5) Where can the community check the supply of XDC in real time? How can investors know the total number of XDC aside from being written in the whitepaper?

The community can easily check the supply of XDC in real-time on the block explorer after the mainnet launch. Even the total number of XDC can be checked by investors on the XDC explorer itself. Visit XDC explorer here.

6) If the circulating supply of XDCe is swapped to XDC, can XDCe holders keep their tokens they already have? Or, is it mandatory to transfer XDCe tokens to Alphaex and swap it to XDC?

While XDC has utility for masternodes staking and as a utility coin for using various utilities on XinFin Network, the XDCe will continue to function for the foreseeable future. However, in a few months, all XDCe and XDC tokens will be eventually swapped to mainnet XDC token.

The report on XDC and XDCe in circulation will be publicly available on both etherscan and XinFin mainnet.

Currently, the swap can be done only over AlphaEx exchange.

7) What impact will the mainnet change have on trading volume since XDC is very low in volume?

Since all the transactions have been taking place through XDCe, we understand XDC was low in volume. But, with the mainnet launch, XDCe will be converted to mainnet XDC token. So, we expect the trading volume to go high with the conversion. Moreover, the native XDC token will also become swappable to mainnet XDC. Another reason for the low trading volume of XDC is: As per whitepaper, it is mandatory that XDC gets traded on regulated, custodian-backed, and insured exchanges, and not just any random exchange.

8) What is the purpose of getting rid of XDCe?

We are not getting rid of XDCe. XDCe will be present for the next few months until all the XDCe tokens are converted to mainnet XDC. Please note that this conversion will take a few months.

We have tried to cover most of the questions we got recently from various community channels and members.

We welcome your feedback and any queries you might have.