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- 1 The introduction of XENON is likely to lead users to mint more XEN.
- 2 Low gas prices and high XEN prices result in minimal service costs and transaction total.
XENON (XEN) is a protocol that enables users to claim their XEN mints without requiring any ETH in their wallet. Thanks to Starfish Technologies serving as a relay server and the Ethereum Gas Station (GSN) providing gas for the transactions, these gasless transactions are possible.
The claimed XEN’s sale covers the cost of the transaction and service fee. By acting as the relay server, the XENON team manages to reduce GSN’s 30% fee on every transaction to 20%, effectively charging 10% lower fees on XEN minters.
What Makes XENON Different?
With XENON, unlike other protocols, the user verifies first if the total mint is enough to cover the transaction cost. The user is presented with a recipe, and if the mint covers the cost, they sign a message with the transaction information and send it to the relayer server. There is no gas required for signing a message.
The relay server signs a native Ethereum transaction, submits it to the mempool, and returns a signed transaction to the client for validation. Once the transaction is confirmed, the user receives their token minus the cost.
On the other hand, the paymaster contract reimburses the relayer, which is the contract that maintains an ETH balance and guides the logic behind the refunds. Gasless transactions have their advantages and disadvantages for XEN users and the larger ecosystem.
Every XENFT claim that goes through the XENON contract requires a sale of XEN, which exerts downward pressure on its price. The impact on the price depends on the price of gas.
When the price of gas is high and the price of XEN is low, its scale will have a more significant impact as a more significant portion of XEN from the mint will need to be sold to cover the transaction cost.
When the price of gas is low and the price of XEN is high, the cost of the service and the total transaction will be minimal. The introduction of XENON may lead users to mint more tokens as they will have more ETH available in their wallet.
This will increase the total supply of XEN. More users’ hands may fuel burning in protocols such as DBXen, Fenix, DBXENFTs, Xendoge, Apex, and Limited XENFTS. XEN’s primary objective is adoption by reducing barriers to entry, and transactions that abstract away gas fulfill this goal by reducing the friction of requiring ETH or another native coin.
Summary
XENON (XEN) protocol allows gasless transactions for users to claim their XEN mints. Starfish Technologies and Ethereum Gas Station make this possible. However, every XENFT claim requires a sale of the token, which affects the price. The cost and impact on the price depend on gas and XEN prices.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
