The xx Coin

The xx coin is your way of participating in the xx network. It’s used to  incentivize running a cMixx/blockchain node, to back those who do through an incentivized system called Nominated Proof Of Stake (NPOS), to vote and govern the network and to exchange value. The xx coin gives uncensorable access to the most private decentralized communications network in the world. 

The xx blockchain uses a Nominated Proof of Stake (NPoS) protocol to secure the network economically. The network’s decentralized governance mechanisms allow every xx coin holder to propose, second, and vote in the referendums that shape the network. These referendums may modify the code of the network, add new features, chanage economic structures, and control just about every aspect of the platform.

More specifically, the xx network will use nominated staking to incentivize all coin holders to participate in node selection, operation, bonding, and governance. There are four main ways to contribute to the xx network and start earning xx coins: 

1. Run an active node: xx coin holders can become an xx network node operator and earn xx coins in exchange for helping secure the network. Prospective validators must stake a minimum of 1,000 xx coins and attract nominations and stakes from the community to be elected. Once elected, every validator is equal, meaning their xx coin staking rewards are not proportional to the validator’s stake, but rather determined by a point-based system that measures each validator’s relative blockchain performance (uptime, block production, etc.). Today, it takes over 100k xx in nominations to become a node on the xx network blockchain.
   
   
2. Nominate an active node: xx network users who do not want to become validators can stake their coins and nominate validators in order to vote on governance proposals and nominate nodes in the network. These Nominators earn interest on the tokens they have staked on active nodes every “era” according to an interest rate curve and the specific commission and performance of the node. Nominations of active nodes can be manually chosen via the
   
   
3. Build an xx app: The xx Foundation has launched a special grant initiative to jumpstart the development and deployment of privacy preserving  dApps using the xxDK. The program will award individual grants of up to 1,000,000 xx coins for each successful submission, from an initial pool of 10,000,000 xx coins, and the xx Foundation will also be involved as advisors for every grant project accepted at this stage.
   
   
4. Grow the xx ecosystem: the xx network’s treasury was created to fund bounties and rewards for ongoing development of the xx ecosystem through activities proposed by the council, the tech committee, or the community at large. Join the xx Discord and Telegram to learn more about new community initiatives and contribute new ideas for how to grow the xx ecosystem.

xx nodes are essential to the security and core operations of the xx network, and node rewards are composed of a share of the fees paid into the network plus an inflationary reward of newly minted xx coins. That said, we understand that running a full node requires some expertise, time, and money to acquire and maintain the requisite computing hardware and minimum bond amount. That’s why we’ve incorporated node nominations and other reward mechanisms – so every active xx user has the ability to participate in xx network’s governance and development and earn xx coins for their contributions.

The xx network was founded on the belief that no matter where you are in the world, you should be able to communicate and transact privately without worrying about whether your digital footprint can be viewed or compromised by any external party. That’s why our open-source technology is designed to enable two primary functions: private communications and secure payments, both of which are planned to rely on a mix of free and paid “postage,” the unit that quantifies the amount of computing power and bandwidth required to transmit data privately across the xx network.

• • Private communications: Usage of the xx network’s private communication layer is designed to be accessible to anyone with a suitable mobile phone. The system is currently designed to be free to use for xx user accounts up to a predetermined volume per day.

This allotted free postage is sufficient for most users’ day-to-day messaging needs. However, in the future, organizations and independent developers who want to deploy and operate dApps and smart contracts on the xx network will need to pay for additional bandwidth using xx coins. In the future, we will roll out additional mechanisms for acquiring and using free postage in order to benefit regular xx users, but the demand for xx coin will continue to grow as more privacy-minded businesses and builders use the xx network to communicate en masse.

• • Secure payments: Every xx coin on the network is held in an account or wallet that is seeded with the strongest type of quantum-secure cryptography known. This ensures that, unlike traditional banking or other cryptocurrencies, not only are your individual coins protected from the rapid development of quantum computers, but just as importantly the infrastructure securing your coins is protected from systemic risk.

While xx network messaging is currently free to use, the xx community may adopt a postage system in which all xx coin holders would have rate-limited access to the network depending on their needs. As envisioned, all xx accounts would automatically accrue free postage gradually over time to ensure that xx network remains universally accessible. Advanced messaging functionality, enterprise adoption, and integration with other blockchains or dApps will require additional postage gained by purchasing xx coins. The xx network’s unique network architecture is structured in a way that enables every new node to provide additional transaction processing power and relay capacity. This means that as the number of xx nodes increases, both security and performance improve. These scaling characteristics thereby enable a virtuous cycle of growth, in which validator revenue increases as network utilization increases, which then allows the network to onboard and support additional nodes and further increase capacity.