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Xai, a popular Ethereum layer-3 gaming network built with Arbitrum, announced the launch of its new staking pools on April 16, 2024.
These pools pave the way for greater collaborative efforts between core stakeholders and enable third-party rewards within the Xai ecosystem.
Sentry Key and esXAI: the Core of XAI’s Staking Pool
Staking pools often become hubs for innovation, driving the creation of games, non-fungible token (NFT) drops, and other exciting projects. Xai aims to leverage staking for sustained growth and a more robust gaming environment.
“The design of the staking mechanism within the Xai ecosystem is centered around fostering collaboration,” Xai Foundation, the team behind Xai, wrote in their official statement.
A Sentry Key is fundamental to the staking process in the Xai ecosystem. Pool creation requires a staked Sentry Key. The owners of Sentry Key can stake their keys in multiple pools to boost reward tiers and maximize their earnings.
Staked keys form the foundation of a pool, directly impacting its potential rewards.
Read more: 9 Cryptocurrencies Offering the Highest Staking Yields (APY) in 2024
Besides Sentry Key, pool capacity for esXAI also plays a major role in XAI staking pools. esXAI is a new token representing staked XAI in escrow.
KYC-verified Sentry Key owners have the exclusive ability to create pools and set network reward percentages for themselves. Effective pool owners must actively lead, recruit members, and market their pools. Failure to do so can lead to stakers migrating toward more successful pools.
Additionally, holders of esXAI also have the potential to earn network rewards, the percentage of which is set by the pool creator. Since most esXAI is likely owned by Sentry Key holders, they are expected to be the largest stakers of esXAI.
XAI’s immediate redemption for esXAI intends to encourage greater ecosystem support from existing members, attract new investors, and promote overall network health.
Despite this development, the initial market reaction has been modest. According to BeInCrypto’s data, XAI is trading at $0.68, representing a 0.71% increase for the last 24 hours.
Read more: What Is Crypto Staking? A Guide to Earning Passive Income
Xai’s move is one of several recent developments fueling the resurgence of Web3 gaming in 2024. Initiatives like Saga’s “Power-Level Over 9000” campaign and a16z’s new Games Fund signal widespread investor confidence in the sector.