MainNet Transition

The team has announced a proposal for xx Token Economics designed to ensure a smooth transition to MainNet and support the continued development of the xx network. Specific to Node Operators, the economics are designed to encourage honest and performant participation, with the goal of retaining the robust BetaNet community while attracting continued growth. Node operators and their nominators will be compensated for both producing blocks and running the cMix protocol.

All nodes who participated in the xx network BetaNet can join the MainNet by self-nominating, as can any potential node operator.

Due to the fact that getting enough stake to be a validator can be quite expensive, the team would like to extend the opportunity for the BetaNet nodes who have made the xx network possible to join the MainNet with the help of the team.

Team Multiplier

The team’s coins will be used to multiply the stake earned over the course of the BetaNet by selected BetaNet nodes. The team will be nominating a total of up to 350 nodes out of a total of 550 node slots in the network.

Node operators who participate in the MainNet Transition program will be able to get their earned stake multiplied by up to 8×. Based upon the amount of xx coins a node stakes, the team multiplier will be different. At the start of MainNet, the multiplier will be as follows[1]:

Stake multiplication will be capped at the number of xx coins a node earned over the lifetime of the BetaNet. This means that any xx coins the node operator has acquired as part of any prior sale will not be eligible for the Stake multiplication.

As the network matures, the team’s tokens will vest and return to the ownership of the team member; removing them from the BetaNet Staking pool. As the pool shrinks, the multipliers will shrink with it and disappear after 3 years. The multipliers are expected to stay constant for the first year. As the pool shrinks below the necessary size to stake all nodes, every node’s additional team stake will maintain its fraction of all multiplied stake.

Commission Rate

Within the xx network, all nodes must set a “commission rate,” which determines the percent of rewards generated by their node which they keep and what percent go to their nominators. To ensure all nodes offer participation opportunities for the nominated staking, for the lifetime of participation within the MainNet Transition Program, a node must set their commission at or below 8% and 12%, depending on their total stake[3].

In general, as the network matures commission rates are expected to trend below these maximum values.

Participation

Due to the fact that the team is staking its own coins on nodes and therefore risking its own coins, the team will be selecting participation in the MainNet Transition program independently.

Selection for participation within the MainNet Transition Program will occur in four tranches.

The team will include any BetaNet nodes which would like to participate in the ProtoNet without participating in the MainNet Transition Program in any of the trenches which overlap with the ProtoNet (tranche 1, 2 or 3).  Such nodes will need to stake themselves to join the MainNet.

A node operator must never block nomination on their node or they will be removed from the MainNet Transition Program.

First Tranche

The first tranche will be the first set of nodes to test the ProtoNet and will contain 50 nodes. Nodes will be expected to carry out extra work in order to help debug the first deployment, so please only apply for the first tranche if you will be available during the first half of August. Selection of this tranche will be announced August 2nd 2021 and nodes will be expected to onboard between August 9th and August 16th. Nodes who fail to onboard in this time period will lose their slot and must reapply to a future tranche. Applications for the first tranche are due by Friday, July 30th 11:59 PM PDT.

Second Tranche

The second tranche will contain 100 nodes. Participants will be announced August 18th and will onboard the ProtoNet August 23rd. Participants will be expected to Onboard by September 5th or they will need to re-apply for a future tranche. Applications for the second tranche are due by Friday, August 13th 11:59 PM PDT.

Third Tranche

The third tranche will contain 125 nodes. Participants will be announced September 3rd and will onboard the ProtoNet September 10th. Participants will be expected to Onboard by September 24th or they will need to re-apply for a future tranche. Applications for the third tranche are due by Friday, August 30th 11:59 PM PDT.

Fourth Tranche

The fourth tranche will contain 75 nodes and be selected and onboard during November/December 2021, after MainNet Launch. With their selection, the total network size will increase from 450 to 550 nodes. Further details of this tranche will be announced at a later date.

Eligibility

To be eligible for selection, a BetaNet Node must have been compensated for at least two months from April 2021 through November 2021 (June 2021 for the first Tranche).

On MainNet launch, the team will support only nodes who stake a minimum of 2 months of coins (14,000 xx coins).

Selection Criteria

The team will use the same selection criteria as it has focused on throughout the BetaNet process with a few new additions. In general, we will focus on bringing over a geographically and jurisdictionally diverse set of nodes to xx MainNet. We will also consider node performance: uptime, failure rates, latencies, time in BetaNet, and more. Selected nodes will receive the usual BetaNet compensation until the September timeframe when MainNet launches, at which point MainNet Token Economics will take over.

Staking Adjustment Over the Life of the MainNet Transition Program

Node operators will be able to make adjustments to reduce their multiplied stake over the course of the MainNet Transition Program. At the launch of the program, a node operator will be able to stake any amount for multiplication up to their total BetaNet Reward. From that point they will be able to reduce their stake, but not increase it. Any time the stake is reduced, that will become the node operator's new cap. Increasing the stake beyond that point will not result in a re-add of multiplied stake.

MainNet Hardware Requirements

The hardware requirements for the MainNet have changed slightly.

The requirements for the Node itself are the same, but requirements for the Gateway have increased. Please see the Hardware Requirements section of the xx wiki to learn more.

For more general onboarding details and documentation, please visit the Node Handbook section of the xx wiki.

MainNet Performance

The team will have performance requirements for participants within the MainNet Transition Program. All requirements will be announced beforehand and are expected to be in line with current BetaNet Requirements. They will be announced following performance data from ProtoNet Testing.

Participants will be given reasonable grace periods and mechanisms to recover from missing requirements through the life of the program.

Not Selected/Non-Participating Nodes

For nodes that do not apply or do not get selected for team-backed staking on MainNet, they will be able to continue on the xx BetaNet that will continue to run with its current economics through the MainNet launch, at which point it will convert to an interim tokenomics model until a new test Network, the Canary Network, with new economics launches. All remaining BetaNet nodes will transfer over, and will help the team continue to develop the xx network while continuing to earn xx coins.

Node operators will always maintain the option to stake themself on the MainNet.

ProtoNet Compensation

Nodes participating in the ProtoNet will be compensated under the BetaNet Agreement (7,000 xx coins per month) for the duration of the ProtoNet maintaining the same general requirements as the BetaNet. 

Application

Applications for the first three tranches can be found here and are open now.

Node operators who would like to participate in ProtoNet but not the MainNet Transition Program can request to do so here.

[1] Regarding equitable allocation of Staking Rewards, though team coins will be used to nominate MainNet nodes, the team will not earn any rewards by staking unvested xx coins
[2] multiplied stake = 1.1987348546×10^−10 × nodeBetaNetStake^3 − 5.1693111455×10^−5 × nodeBetaNetStake^2 + 8.6850567834 × nodeBetaNetStake − 1223.0356324078
[3] Maximum Commission = 2.48447203×10^−7 × nodeStake + 0.07652173913