The month of November has begun and that means that the year 2020 is about to come to an end, at Satoshi Club we will continue to bring exciting projects. Today we would like to tell you about the AMA session with our friends from Xplosive Ethereum and the guest was xETH Trent, the Marketing Manager for xETH.
The total reward pool was 500$ and was divided into three parts. In this AMA Recap we will try to summarize some of the most interesting points for you.
PART 1, INTRODUCTION AND COMMUNITY QUESTIONS
Luis Merino | Satoshi Club: Hello SatoshiClubbers! Welcome to another AMA session with us. Today we have Xplosive Ethereum with us.
Gold Rocket | Satoshi Club: @xETHTrent, welcome to Satoshi club!
xETH Trent: Hey guys, pleasure to be here with you all.
Luis Merino | Satoshi Club: Could you please introduce yourself and tell us how you started with xETH?
xETH Trent: I am the Marketing Manager for xETH; I have been a holder of xETH before I joined the team.
My pleasure, xETH (Xplosive Ethereum) is the first of its’ kind in the rebase space of cryptocurrency. Xplosive Ethereum is a price reactive deflationary token that has eradicated negative rebases. xETH has a target price of 0.01 ethereum daily, meaning if the price of xETH is above 0.01 ETH we get a positive rebase. If it’s below that amount nothing happens! The sales tax also burns an amount of each transaction reducing overall supply, half of this tax is sent to the staking rewards pool and half is sent to a burn address.
Q1 from Telegram user @sajay999
If you xETH is pegged to 0.01 ETH, does it mean that its price can’t go lower or higher than the price of 0.01 eth? Like usdt to usd?
xETH Trent: No not at all, the price being pegged is the reference of the standard value of the token. The price is still able to become higher or lower based on buy and sell pressure. When the price goes above the peg price that is when a rebase occurs, what happens is your holdings increase relative to the increase of value above the peg price. So if the value of the token is 10% above the peg price then you are awarded additional tokens to the value of the 10%, effectively increasing inflation to bring your holdings back in line with the peg price, while it doesn’t devalue your current tokens it increases the circulating supply to align the number of tokens with the value of the market cap.
Gold Rocket | Satoshi Club: Does this mean that you are always in position win-win?
xETH Trent: It is a win-win for xETH but not in the traditional sense that the tokens value never drops. The mechanisms behind xETH that make it a win-win is that our taxes are increased the further below peg we go. This incentivizes hodling and alleviates sell pressure. With all other rebase tokens they have a mechanism called a debase, where your token holdings are reduced. So as an example, you could go to bed with 100 tokens and wake up to 80 tokens after a negative rebase. Our token is designed with no negative rebases, so you will never have less tokens. You can only ever gain more tokens.
Further to this one huge point is Xeth discludes the uniswap pool so when a rebase occurs your tokens are worth the same as they were beforehand. So if Xeth is $5 and you have 100 Xeth and then get a 20% rebase you then have 120 Xeth at $5. Price doesn’t change.
Q2 from Telegram user @ozmnhkn
Although ETH 2.0 is delayed to next year, it will solve all current ETH issues and dApps will be trending in the future, do you think this is a threat to your project?
xETH Trent: No not at all, as our token directly correlates to ETH, as the value of ETH increases so does our tokens peg price. Again the further below peg that we are the higher the tax rate is. This deters sell offs and increases the buy presser exponentially. Once we have hit peg, you get a rebase and the tax is reduced to stop the hyperinflation of the value of the token. It is designed to always be worth 0.01 ETH and our mechanisms were designed by mathematics and economics engineers to ensure that it not only works as it is designed to but also that it is sustainable for years to come.
The better ETH performs and the greater adoption of dAPPs will only strengthen xETH into the future.
Gold Rocket | Satoshi Club: By the way, do you have a big team? How many people are working on a project?
xETH Trent: Our team has over 10 members as well as a partnership with the Community Token (com) which gives us a greater talent pool to be able to utilize.
Luis Merino | Satoshi Club: Got it! So the improvements done to ETH will directly affect xETH. Sounds good. Looking forward to ETH 2.0 launch to see how your project reacts. 🙂
xETH Trent: They are a mixture of many different backgrounds and experts in their chosen fields and professions. We have developers, engineers, business professionals to name a few.
Gold Rocket | Satoshi Club: For the success of the project, in addition to technology, you really need proper marketing. And that’s a good way to go.
xETH Trent: Correct, I own a digital media agency and was the reason I joined the team as the Marketing Manager. I have also run several multi-million dollar sites for various national and international companies. I started my career working for a Fortune 500 company called CSC (Computer Sciences Corporation).
Q3 from Telegram user @Jobel4
How can you assure that Xplosive Ethereum has no negative Rebases? Can you discuss how rebasing run in your platform? What are the drawbacks and benefits of Rebasing?
xETH Trent: We are a fork of the project AMPL (Amplforth) and looked at what made that project good and what were some of the challenges associated with it and others competing for market share in the space. We noticed they all had the same design principles of negative rebases, which while in theory is a sound principle the psychological effects of that is detrimental for the sustainability of not only the token but also your own portfolio. We knew that if we could come up with a solution to that problem it would not only be a groundbreaking game changer but also have positive financial impacts for our communities’ portfolio.
The rebase lag factor ensures that the rebases are sustainable for the long term. We had mathematicians come up with the perfect formula for a sustainable rebase. Let’s say the peg price determined is 0.01 ETH which is 3.75 usd in example. Imagine that we are at 7.5 usd per xETH, then we are 100% above the peg. With the rebase lag of 1/2 (divided by 2) we would get a rebase of 50%. Our rebase is able to be dynamic based on how long the price has remained below peg. If the price stays below peg for too long then the rebase lag rate is reduced, adding more incentive to buy the token and drive the price back above peg. If the price is above peg for too long, then the lag rate is increased. This prevents hyper-inflation. If the price goes too high the lag is further increased to keep the rebases sustainable and allowing the project to continue on indefinitely.
Gold Rocket | Satoshi Club: It’s good that you thought about it. What about smart contact audit? Did you have or plan it?
xETH Trent: The greatest benefit to rebasing with no negative rebases is you are able to have a passive income for as long as you own the token and we are above the peg price.
Our smart token is actually a fork of AMPL but with all the enhancements to create something better. AMPL was previously audited so we knew the contract was safe. As we are partnered with the Community Token (com) some of their developers went over the contract as well. However we do not consider that to be an audit as they are closely partnered with us. In regards to a third party reputable auditor we will be having one done with the release of xETH 2.0.
Once that audit is completed we will be posting it on our website / medium / github etc for full transparency and disclosure.
Q4 from Telegram Username @konditer_rolex
Did I happen to hear about the xeth Millionaire cruise? What is it guys?
xETH Trent: Haha, Yes that is true, we have quite a few large investors backing the project. It was an idea floated by one of our largest investors who wants to take everyone who owns a substantial amount of xETH on a Caribbean cruise. Full disclosure, I can’t wait lol.
Q5 from Telegram Username @yzmoney
There are several rebase token in the market, with ampl with largest market cap with a onetime marketcap from 1 billion market cap that drops until 100 million now. What’s your unique selling point compare to them? the target of your coin is to reach baseline of 0.01Eth, why did you choose this value? Is there a maximum % of rebase daily?
xETH Trent: Our unique selling point is no negative rebases. You will never lose any of your tokens. With the uniswap pools not taken into consideration the value of your tokens doesn’t decrease as your token holdings increase. This allows you to earn a sustainable passive income. In the current climate with COVID and economic uncertainty this adds a level of stability in an already uncertain time. That value was chosen as it is a sustainable price point that anyone can buy into, we could have gone 1 BTC as the peg, but it will price regular investors out of the market from owning more than one token. We aren’t trying to be the most expensive token, but we do want to become one of the most widely adopted. There is not a maximum, however the further away from peg we go the more the lag rate increases, this is to ensure there is not a 100% rebase where people just get twice as many tokens and we end up with a hyperinflation scenario.
There are smarter people than me with economics, financial and mathematics degrees who have worked out the perfect formula for keeping everything synced in perfect harmony. I will say an analysis of xETH v AMPL was conducted, Over the last 30 days, average rebase for xETH 6.1% / 0.006% for AMPL.
Q6 from Telegram Username @Xusuo
I read that roadmap for 2021 you have planned the issuance of XplosiveETH Stablecoin. My question is What role will it play on the platform? How will it differ from XplosiveETH?
xETH Trent: That is not on our roadmap. We do not have plans for a stablecoin. Our roadmap ends at the end of 2020 with xETH 2.0. That is once the audits are finalized and everything is 100%. At which point the dev keys will be burned, and the project will be completely decentralized. It will then be handed over to the community as it was always intended to be.
PART 2, TELEGRAM COMMUNITY LIVE QUESTIONS
The chat was open for 80 seconds; a lot of questions were posted by Satoshi Club community. Our guest chose some of them.
Q1 from Unknown Telegram User
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xETH Trent: Yes! Our staking pools are currently in beta testing, once everything has been proven to work accordingly this will be opened for people to provide LP tokens as liquidity. This will further stabilize the price allowing for a slower and more even price change. You will get tokens from providing LP tokens relative to your contribution.
Q2 from Telegram User @KeymerS
In the last 24 hours xETH has fallen by 39.87%, how did this happen if XPLOSIVE ETHEREUM has deflationary mechanisms that make the price rise again? or have not finished developing them?
xETH Trent: After every rebase there is a natural sell wall, every rebase token encounters it, as that is by nature the design of a rebase token. If there were no sells after a rebase then the price would never go down and the reduction of lag will continue until the buy pressure is released. If you look through the data we had that happen with the token at the start of its life cycle. As with all tokens there are ebbs and flows. We have now been live for a little over 6 weeks, and the mechanisms we have in place are working as they should be. Once you have a rebase, you sell your rebase (if you choose, you could hold it and compound the additional tokens next rebase if that is what you choose to do and gain more tokens from subsequent rebases) and the price goes below peg. The tax increases to alleviate the sell pressure and prevent the token going into a deal spiral. Now that we have gone past the initial phase, you will see a steady flow of buys after each rebase sell wall. This is the only way a passive income is sustainable.
Q3 from Telegram User @AmirJosh
Can you please explain the 33% tax when someone adds liquidity? What is the reason why you set this high percentage?
xETH Trent: The tax is variable and will always change depending on the market demands. However with staking as you are guaranteed to earn tokens even when the price is below peg, this was done to prevent daily dumping of tokens suppressing those whom do not stake from reaching peg and earning rebase rewards. You will always end up in a profitable position, it will just take a little while initially.
Q4 from Telegram User @Johana0012
Do the delegates with more Xplosive tokens have more voting power? have a greater capacity to direct the project?
xETH Trent: No, it does not matter if you own 1 xETH of 1 million. Every vote that is put forward has an equal voice. This is truly designed with the community in mind and not a few people who are able to purchase more.
Q5 from Telegram User @Don289
If anybody think that your project really likes a scam project, and they can’t trust your project. How do you make them believe in your project?
xETH Trent: With so many dubious projects in the crypto space it is easy for people to be skeptical about projects. Currently the development funds are locked until after xETH 2.0 is available. We have also burnt 70% of the developer tokens to the tune of $3.2 million USD. xETH 2.0 will be completely audited by reputable external auditors and those results will be published on all of our socials and on the website, medium, github. Finally we will burn the developers keys.
Q6 from Telegram User @Triwidodo99
What is the main use case of xplosive ETH?
xETH Trent: Our economics and financial specialists took the federal reserve and the banking sector in mind and wanted to offer better interest rates that you can receive from them. Think of xETH as a long term savings account. You can withdraw your interest or some of your capital if you need or leave it there to earn more money over time. This is one of the major factors that will help to garner mass adoption.
Q7 from Telegram User @ruhel00786
I am strong hodler so Can you please tell me why i go for $xeth instead of $AMPL?
xETH Trent: No negative rebases, higher ROI and mechanics in place to stop the price staying below peg.
Q8 from Telegram User @Rosane1a8
What backs up the initial value of xETH? How was the crowdfunding for this, did the community take part of it?
xETH Trent: The inital value of xETH was the com token. When the founders initially wanted to build the project they took all the information along with the mechanics and formulas for the sustainability of the token and presented it for the initial liquidity. It was vetted before the project was nothing more than a concept. The COM team helped to establish the foundation of the project and is the reason why we are so closely partnered with them.
Q9 from Unknown Telegram User
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xETH Trent: Most rugs occur within the first few days of a project. xETH is nearing 2 months old. The team behind the formulas have spent countless hours going over the numbers and running future models with various scenarios to ensure the sustainability of the project. Until xETH 2.0 is completely handed over to the community these models can continually be fine-tuned and tested. Though they haven’t needed to be for a while.
Q10 from Telegram User @Alika061
There are so many people who want to drop or FUD on a project and I see now in the group there are so many vilification and FUD, what about the responses that are problematic like that in the #Explosive Ethereum community?
xETH Trent: Fud is an inevitability of all projects these days, a lot of people dive into the latest hyped project without even knowing what the project is or what it is designed for. You cannot stop fud if people want to be malicious. You can educate people who do not know and start to panic. Knowledge is the best weapon in fighting fud. Don’t retaliate, educate. Our community has great members whom will help you and teach you if you really want to know about the project. Of course you will always have people who want to play psyops or enjoy seeing others get shaken, that is an unfortunate side effect of people being able to hide behind a screen.
PART 3, QUIZ AND INFO
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about Xplosive Ethereum. A link to a Quiz form were sent into the chat. Participants had 10 minutes to answer. 300$ were distributed between the winners.
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