As the crypto landscape continues to evolve, Layer 3 networks are now emerging as the new frontier, building upon the foundations laid by Layer 2 ecosystems. A notable entrant in this space is the XAI Network, a Layer 3 blockchain developed by Arbitrum, which recently launched its mainnet. The project positions itself as a dedicated blockchain for gaming, with an aim to rival already established gaming blockchains.
The development of the XAI Network is rooted in the use of Arbitrum Orbit technology. This technology introduces flexibility that allows developers to customize their blockchains to meet specific needs. In this multi-layered structure, transactions on the Orbit chains first settle on Arbitrum and then ultimately onto the Ethereum blockchain.
XAI Network is the brainchild of Offchain Labs, the creators of Arbitrum, currently the leading Layer 2 network with a TVL exceeding $11 billion. The pedigree of the development team adds a layer of credibility and anticipation to this blockchain.
A key focus of the XAI Network is to enhance the gaming experience. It achieves this by offering an abstracted wallet and account experience, along with increased gas and contract limits. Importantly, it maintains full decentralization, a core value for both gamers and game developers in the blockchain space.
One of the standout features of the XAI Network is its ‘gas subsidy’. This innovative feature enables game developers to subsidize gas fees for their users (gamers), addressing one of the major barriers to blockchain gaming - high gas fees. This subsidy is expected to attract more games and gamers to the platform, as it mitigates the cost barrier that has hindered the proliferation of games on Ethereum Layer 1 and other popular blockchains.
The network is already witnessing adoption in the gaming world. It has forged a partnership with Team Secret, a prominent e-sports organization, and currently has two major games in development. These games, Final Form and LAMO, are being developed by Ex Populus, a team comprised of veterans from major gaming companies like Electronic Arts (EA), Wargaming, and Ubisoft.
In tandem with its mainnet launch, XAI Network conducted an airdrop of XAI tokens to its early supporters, distributing approximately 5% of its total supply, equivalent to 125 million tokens valued at over $80 million. The distribution varied based on the type of NFTs held and the role of the participant, with Vanguard NFT Holders, Legendary NFT Holders, and Sentry Node Operators receiving different amounts of XAI. In terms of dollar value, the airdrop amounts ranged from $200 to approximately $1100.
Since its launch, the XAI token has been listed on several major crypto exchanges, including Binance and Bybit. Its market capitalization currently stands at around $189 million, indicating a strong market reception and confidence in the future of this innovative blockchain project.
