Unlike other stablecoins, Xank is a free-floating cryptocurrency that offers stablecoin functionality through its user optional Stable Pay feature on a per transaction basis. This means that the Xank price responds to the traditional market forces of supply and demand. A Xank user can make a normal blockchain transaction or a Stable Pay transaction so as to retain a certain fiat value during the duration of the transaction lifecycle, which covers the purchase, transferring, and eventual selling and conversion back into fiat. The Stable Pay feature is supported by the self-funding Xank Reserve mechanism that can calibrate Stable Pay transactions by adding or subtracting the required amount of Xank coins that are transacted so as to maintain a stable fiat value.
Xank operates on Xank’s own blockchain. To achieve Stable Pay functionality, Xank will fork the Dash project, which itself is a fork of Bitcoin.
Even though the Dash protocol has solved many of the scalability and privacy issues that Bitcoin faced by adding a masternode network layer, it has also created a potential centralization point for the Dash network. In theory, it is possible for an adversary to covertly buy up many of the Dash masternodes so as to establish control over how the network is governed. Xank has solved this issue by integrating a Self-sovereign Identity system where a masternode operator can only establish one vote, regardless of how many masternodes they control.
Instead of Dash’s democratic governance model, Xank has implemented an Idea and Social Meritocratic model where a masternode operator’s voting power is weighted against his or her Reputation Index scores for better decision making.
We believe that although Ethereum is leading the way in this domain, it has yet to prove itself as a scalable technology, and this goes for other Ethereum-like platforms. Instead, Xank seeks to adopt technologies that are feasible and scalable in the long term. Xank is closely following the development of second layer smart contract functionality that does not burden and bloat the underlying blockchain and is open to adopting these technologies as they become viable.
An Extreme Volatility Safeguard (EVS) price floor mechanism will be set to safeguard Xank from the complete collapse of the economy. This mechanism will assure that the Xank cryptocurrency will serve as a stablecoin most of the time, as opposed to the 0% of the time of other cryptocurrencies, while also remaining a free-floating cryptocurrency. Conversely, an Extreme Volatility Safeguard (EVS) price ceiling mechanism will not be set to ensure that any upside will remain in the Xank Reserve to assure the stability and continuity of the reserve mechanism and provide confidence in the wider network sustainability at large.
No, Bitcoin is a fixed supply currency rather than an elastic supply currency like the U.S. dollar. Therefore it can be compared to something like gold. Historically, gold has had an about 15% volatility against the U.S. dollar, annually. While 15% annual volatility is low enough to do “small” transactions, it is far too high for non-negligible amounts of time-to-settlement payments, such as salaries and loans. Xank’s optional Stable Pay feature “pre-hedges” the currency against a basket of currencies (initially set as the IMF’s SDR) for the entire duration of the transaction lifecycle, from coin purchase to settlement, so that you never have to worry about volatility.
A classic Soros attack would involve the following:
– Someone borrows a large number of coins for short selling.
– They then flood the market using the borrowed coins.
– Achieving a significant enough price drop, the attacker buys back the coins at a huge discount, returns the borrowed capital to the lender, and sees the remaining amount as a profit.
Xank’s approach of having a floor and pegging only during the lifetime of a Stable Pay transaction can mitigate most malicious attacks of this type. All Stable Pay transactions have initiation and expiration times. The Xank protocol manages peg rates between times and both peg profits and losses are calibrated with the self-funding and self-governing Xank Reserve, making it a very robust mechanism.
Yes, the U.S. dollar is a good example of this. Before President Nixon abolished what’s known as the Bretton Woods system, every country including the U.S., backed their currency by maintaining a percentage of gold reserves. Since then, the U.S. money supply, and consequently the global money supply, has not been backed by any tangible assets.
No, the coin can be pegged to anything for which you can source an exchange rate. In the long run, when people use coins to purchase goods and services, the system can be pegged to a consumer price index (CPI), the price of a pre-determined basket of goods fed to the blockchain, instead of the SDR exchange rate. We believe that a peg to the IMF’s SDR, a basket of the U.S. dollar, euro, Chinese renminbi, Japanese yen, and the British pound sterling, is inherently more stable than any single fiat currency peg. Therefore, we decided to establish a peg to the SDR as a bootstrapping mechanism. Should a different simulated peg add stability to the protocol at a later stage, the network’s governance may decide to shift the peg to a CPI like value, such as a basket of goods priced in Xank. Such efforts are made to eliminate the dependence on fiat while maintaining stability, usability, and sustainability.
No, Xank coins are not pegged to the IMF SDR all the time. In the literal sense, Xank isn’t pegged to the SDR at all – it only simulates a peg when necessary. To peg the entire coin supply to the SDR, Xank would need at least the entire coin supply’s worth of collateral, similar to what Tether is doing with the U.S. dollar. Instead, Xank only simulates pegging to the SDR to calibrate the quantity of coins at the receiver’s wallet at the point of settlement to guarantee the fiat denominated terms promised by the sender.
It is important to note that the Xank coin will be a free-floating cryptocurrency with built-in stablecoin functionality that is derived from using the Stable Pay feature. The Xank coin will be exposed to supply and demand market forces and will vary in value and be priced accordingly and independently on all exchanges where it will be listed. This does not in any way diminish the usefulness of the Stable Pay feature, which, when chosen, provides stablecoin functionality that is required for certain types of transactions.
The masternode network determines the source when the time comes. Unlike Dash, a masternode operator has no voting power until it has secured a Self Sovereign Identity with a Reputation Score. A Reputation Score is attained by providing credentials to the network that are assessed by the network of masternodes. This network of masternodes assigns weights to each masternode’s Reputation Index, which will be based on criteria that indicate the level of merit the masternode operator can provide to the network. Merit scoring will take into consideration expertise, talents, and intellect that lends itself to being of benefit to the network. The Self-sovereign Identity system, along with the 1-10 point Reputation Index, make sure that a masternode operator is weighted according to their Proof-of-Merit to the Xank network. Thus, Xank ensures that network funding proposals and approvals are governed in a meritocratic way.
1 billion Xank tokens are one-time pre-mined tokens for the ICO. All Xank coins issued thereafter will have no maximum coin supply limit. The 1 billion is allocated at the genesis block for setup of 6 initial masternodes, early backers, ICO investors, founders, and the founding company. The money supply will increase according to the Xank Coin Supply Algorithm, which is based on a binary logarithm to calculate the emission of the Xank coins. There will be approximately 6.26B Xank coins issued after 100 years.
Unlike Bitcoin and Dash that use the Proof-of-Work (PoW) mining consensus mechanism to achieve network-wide consensus and security, Xank will implement a Proof-of-Stake (PoS) consensus algorithm. By choosing to implement a PoS, Xank network participants will avoid having to deal with problems that arise out of PoW implementations, such as 51% mining attacks and investment in hardware that is quickly made obsolete and is characterized by excessive electricity consumption.
X can mean “infinity” in mathematics. Thus, Xank means you can put anything (aka infinity) into a bank. Our vision is to become the Bank of Values. We believe that in the future, banks will evolve beyond holding national currencies to holding virtual, crypto, and digital assets that go further than merely recording monetary value to carry other forms of value, such as time, royalty, or identity.
Xank [zangk] is pronounced exactly like Zank [zangk]. Just ask Alexa or Siri!