Xai (XAI)

Overview

Xai is a blockchain built for video games. Its native token, XAI, pays for activity on the network and supports parts of its reward and governance system. The project’s main idea is that players should be able to own and trade game items while developers handle much of the blockchain work behind the scenes. Xai is a Layer 3 network: it runs on Arbitrum One, which in turn runs on Ethereum. This design gives games their own environment for frequent transactions instead of placing every action directly on Ethereum. (xai-foundation.gitbook.io)

A player might use Xai to receive a collectible card or trade an in-game item. That player may never need to see a token balance or approve a blockchain transaction. Developers can build those steps into the game experience. XAI remains important underneath: it is the network’s gas token, meaning it is used to pay the fees required to process transactions. (xai.games)

History & Team

From testnet to mainnet

Xai’s public mainnet launched on January 9, 2024. Before launch, its Odyssey testnet supported experiments with games including Tarochi and Web3 Warriors. The Xai Foundation reported that the testnet handled nearly five million transactions in a day during the fourth quarter of 2023. That was a testnet milestone, showing how the team tested gaming activity before opening the main network. (xai-foundation.gitbook.io)

The Xai Foundation oversees the network’s strategy and ecosystem growth. Offchain Labs, the company behind Arbitrum technology, provides technical support. Game developer Ex Populus was an early participant, and other studios have since appeared in Xai’s game directory. These roles help explain the project’s structure: the foundation stewards the ecosystem, a specialist team supports the blockchain technology, and game makers decide what to build on it. The Foundation’s published token allocation also identifies early-round investors as a group, without naming individual investors there. (xai-foundation.gitbook.io)

Technology & How It Works

A gaming chain built on Arbitrum

Xai uses Arbitrum Orbit and AnyTrust technology. Arbitrum One is its parent chain, while Ethereum sits beneath Arbitrum in the wider system. Xai’s AnyTrust design uses a data availability committee to make transaction data available. The network also has its own settings, including higher gas and contract limits intended to give game developers more room to build. Its mainnet chain ID is 660279, a number that wallets use to identify the network. (xai-foundation.gitbook.io)

Games often produce many small actions: collecting an item, updating a character, or trading with another player. Recording selected actions on Xai can give a game a shared record of who owns an asset. A developer still chooses how its game works and which actions belong on-chain. An item recorded on a blockchain does not automatically work in every game; another developer would need to build support for it. (xai.games)

Sentry nodes and simpler player accounts

Xai has Sentry nodes that watch the rollup and help identify incorrect assertions about its state. A Sentry Key enables an operator to take part in the network reward system. Operators can also join pools, where keys and staked tokens are brought together under the pool’s rules. Sentry nodes serve a monitoring role alongside the chain’s other infrastructure. (xai-foundation.gitbook.io)

For players, Xai Connect offers social login and an abstracted wallet experience. It is designed to let someone enter a game with a familiar sign-in method rather than set up a traditional wallet first. The service also describes a gas subsidy that can cover transaction costs for supported player experiences. In both cases, blockchain transactions still take place; the game or service handles more of the steps a player would otherwise see. (connect.xai.games)

Tokenomics & Utility

XAI and esXAI

The network’s stated maximum combined supply is 2.5 billion XAI and esXAI. XAI is transferable and pays gas fees on Xai. The foundation’s token documentation says gas paid in XAI is burned, removing those tokens from supply. It also describes a reward schedule in which new esXAI emissions change as the combined supply reaches set thresholds. (xai-foundation.gitbook.io)

esXAI is a separate, non-transferable token used for rewards and staking. Sentry node operators can receive it for participating in network challenges. Holders can convert XAI into esXAI at a one-to-one rate. Converting esXAI back to XAI takes time: the documented choices include a 15-day period with a partial conversion rate and a 180-day period with a one-to-one rate. The Foundation’s staking terms require identity verification to redeem esXAI for XAI. This makes esXAI different from a token that can simply be sent to an exchange. (xai-foundation.gitbook.io)

At launch, the published allocation assigned 20% of the maximum supply to the core team and early contributors, 22.41% to early-round investors, 5.5% to ecosystem purposes, and 2% to market makers. The team, investor, and ecosystem allocations followed different unlocking schedules rather than all becoming available at once. The network’s emissions and burns operate alongside those initial allocations. (xai-foundation.gitbook.io)

XAI also has a governance role. Xai’s governance portal combines eligible XAI, esXAI, and staked esXAI into voting power called vXAI. Token holders can delegate votes and take part in decisions on proposals. Under the Foundation’s adopted first-phase governance plan, the Foundation retains substantial authority, including a veto over certain proposals. (gov.xai.games)

Ecosystem & Use Cases

Xai’s clearest use case is the game item: a card, character, collectible, or other asset represented on-chain. A game can use the network to record ownership and enable transfers. For developers, Xai offers tools for adding these features, including Xai Builder software for Unity and Unreal and Xai Connect for player accounts. The Foundation also describes incentives intended to help developers bring games to the network. (xai.games)

The project’s game directory shows several kinds of experiences. Tarochi is an on-chain role-playing game built around quests and monsters. Lost Glitches combines role-playing with deck building, while Final Form is a card-based auto-battler. The directory also lists Planet X, a mobile extraction game. Together, they show that Xai’s gaming focus is broader than one title or genre. Each game decides how deeply to use the network. (xai.games)

Advantages & Challenges

Xai gives developers a chain designed around gaming needs, access to Arbitrum-based technology, and tools for making player sign-in simpler. Its native gas token and subsidy options give developers different ways to handle transaction fees. The Sentry system and token governance offer community members defined ways to participate beyond playing games. (xai-foundation.gitbook.io)

Its central challenge is adoption. Developers must make games people want to play, then decide whether on-chain ownership improves those games. They also need to design the connection between an item’s blockchain record and what that item does during play. Another ongoing task is governance: Xai’s approved plan calls for authority to move toward the DAO in phases, while the Foundation keeps a strong role during the first phase. These questions shape how useful the network becomes to players and studios. (gov.xai.games)

Where to Buy & Wallets

XAI is available on Binance, which listed the token when the mainnet launched. Exchange access and supported services depend on the user’s location. XAI held on Arbitrum One can be moved to Xai mainnet through the Arbitrum bridge. Users making that transfer need to select the intended network and asset, since Arbitrum One and Xai mainnet are separate chains. (binance.com)

MetaMask can hold XAI and connect to Xai after the network is added using its mainnet settings. The Foundation’s documentation says XAI works with Ethereum wallets compatible with Arbitrum. Players using supported games may instead encounter Xai Connect’s social-login account experience, while people operating nodes or using staking features need a compatible wallet for those activities. (xai-foundation.gitbook.io)

Regulatory & Compliance

The Xai Foundation is incorporated in the Cayman Islands. Its terms set separate conditions for different users and activities. In particular, the Foundation says its website and services do not offer U.S. persons activities involving the purchase, earning, claiming, staking, or transfer of digital assets through those services. Its staking terms also require identity verification for esXAI redemption. In the European Union, the broader Markets in Crypto-Assets framework sets rules for covered crypto-asset issuers and service providers, including trading venues and wallet services. These rules concern how services operate and are offered; they are separate from the technical rules of the Xai chain. (xai.games)

XAI’s published token features do not establish a halal classification. A Shariah assessment would consider how the token is used, including gaming activity, staking arrangements, and whether a particular use involves interest, gambling, or excessive uncertainty. The Foundation’s token documentation explains XAI fees and esXAI rewards, but those technical descriptions alone do not amount to a religious ruling. Halal status therefore cannot be stated as a general fact for every use of XAI. (xai-foundation.gitbook.io)

Future Outlook

Xai’s development depends on how well games turn its infrastructure into enjoyable player experiences. Its existing tools address three practical needs: giving developers a place to record assets, helping players sign in, and handling transaction fees in the background. The governance plan adds another long-term task: expanding the community’s role in decisions as its phases progress. The network’s lasting value to gaming will be shown by what developers build and how players use those games. (xai.games)

Summary

Xai is a Layer 3 gaming network with XAI as its gas token. It combines Arbitrum-based infrastructure, Sentry node rewards, governance, and player-facing tools meant to make blockchain features easier to use in games. Its place in the crypto ecosystem centers on a straightforward goal: helping developers create games in which on-chain assets serve the experience of play. (xai-foundation.gitbook.io)