Understanding XAI: A Deep Dive into Xai Games and Its Crypto Token

XAI is a blockchain project that aims to bring real ownership and decentralized economies to AAA gaming through a dedicated layer-3 solution. At its core, XAI is both a network and a token designed to power the next generation of Web3 games.

What is XAI?

XAI refers to the native token of the Xai Network, a gaming-focused blockchain built on Arbitrum Orbit and developed in collaboration with Offchain Labs (the creators of Arbitrum). It’s specifically optimized for high-performance games that require scalability, low gas fees, and easy onboarding for traditional gamers.

Xai Network: A Layer-3 Solution for Gaming

The Xai Network is a Layer-3 blockchain built on top of Arbitrum One (Layer 2), which itself runs on Ethereum. Layer-3s are designed to be ultra-specialized, often for specific sectors—in this case, AAA gaming.

Key Features:

  • EVM compatibility: Developers can deploy existing smart contracts.

  • Gasless transactions for players: Making it easier for non-crypto natives.

  • Customizable infrastructure: Studios can deploy their own rollups or chains.

  • High throughput: Capable of supporting high-concurrency games.

The Role of the XAI Token

The XAI token (ERC-20) serves multiple purposes across the network and its ecosystem of games:

Utility of the Token:

  • Transaction Fees: Used to pay gas in the Xai Network (when applicable).

  • Staking & Governance: Users can stake XAI for validator roles and vote on governance decisions.

  • In-Game Economy: Certain games and NFTs on Xai are traded using XAI tokens.

  • Validator Incentives: Validators securing the network are rewarded in XAI.

Sentry Nodes and Staking

XAI features a staking mechanism where users can stake their XAI tokens on Sentry Nodes, which help secure and validate the network. These nodes are rewarded based on the amount of XAI staked and network activity.

  • Sentry Nodes: Non-technical nodes that do not require running hardware, just staking.

  • Rewards: Distributed based on time and stake size, currently supported by a fixed emission schedule.

Ecosystem and Partners

XAI is incubated by Arbitrum Foundation and developed by Offchain Labs in collaboration with Ex Populus, a game studio building flagship titles like Final Form.

Games on Xai:

  • Final Form: A digital collectible battle game.

  • LAMOverse: A martial arts metaverse game.

  • Others: More AAA-style games are expected to onboard in 2024–2025.

Notable Partnerships:

  • TreasureDAO: For NFT infrastructure.

  • OpenSea: For NFT marketplace support.

  • Chainlink: For oracle services.

Tokenomics

  • Ticker: XAI

  • Total Supply: 2.5 billion XAI

  • Initial Distribution:

    • 25% – Ecosystem growth

    • 20% – Sentry Node rewards

    • 15% – Team and advisors

    • 15% – Treasury

    • 10% – Public sale

    • 15% – Strategic partners and investors

Note: These numbers may vary slightly as the project evolves.

Where to Buy XAI

As of mid-2025, XAI is listed on several major exchanges:

  • Coinbase

  • Binance

  • Uniswap

  • MEXC

  • Gate.io

Always confirm the contract address before trading to avoid scams.

Pros and Cons

Pros:

  • Backed by Arbitrum ecosystem

  • Gasless gaming transactions

  • Clear use case in AAA games

  • Staking rewards through Sentry Nodes

Cons:

  • Still early in adoption

  • Competition from other gaming chains like Immutable X, Ronin

  • High volatility as a gaming-focused token

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