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FAQ

How is Xank different from other stablecoins?

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 which 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.

What type of Blockchain do you operate on?

Xank’s own blockchain. To achieve Stable Pay functionality, Xank will fork the Dash project which itself is a fork of Bitcoin.

How do you solve masternode centralization?

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 so 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.

When do you plan to offer Smart Contract using Xank?

We feel 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.

What will happen if extreme volatility hits?

An Extreme Volatility Safeguard (EVS) price floor mechanism will be set to safeguard 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 achieved consistently by other cryptocurrencies, while also remaining a free-floating cryptocurrency during normal times. Conversely, an Extreme Volatility Safeguard (EVS) price ceiling mechanism will not be set to ensure that any upside will remain in the Xank Reserve assuring the stability and continuity of the reserve mechanism and provide confidence in the wider network sustainability at large.

Won’t Bitcoin eventually have zero volatility over time?

No, Bitcoin is a fixed supply currency rather than an elastic supply currency such as USD. Therefore it can be compared to something like Gold. Historically Gold has about 15% volatility against USD annually. While 15% annual volatility is low enough to do “small” transactions, it is far too high for the non-negligible amount 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 the volatility.

How does the system survive a Soros type of malicious attack?

A classic Soros attack would involve the following:

  1. Someone borrows a large number of coins for short selling.
  2. They then flood the market using the borrowed coins.
  3. 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 the 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.

Can a system that isn’t backed by any tangible assets be truly stable?

Yes, the USD is a good example of this. Before US President Nixon abolished what’s known as the Bretton Woods system, every country including the US-backed their currency by maintaining a percentage of Gold reserves. Since then, the US money supply, and consequently the global money supply, has not been backed by any tangible assets.

Can Xank only be pegged to the IMF SDR?

No, the coin can be pegged to anything you can source exchange rate for. In the long run, when people use coins to purchase goods and services, the system can peg to a consumer price index (CPI) by uploading the price of a pre-determined basket of goods instead of the coin to SDR exchange rate to the blockchain. We believe that IMF’s SDR which is a basket of world’s major currencies such as USD, EUR, RMB, JPY, and GBP peg is inherently more stable than any single fiat currency peg alone. Therefore, we decided to peg to the SDR as a bootstrapping mechanism initially. At a later stage, and subject to the network governance, and should such a change probably add stability to the protocol, network consensus can decide to shift the peg to a CPI like value, such as a basket of goods priced in Xank with a view to eliminating dependence on fiat while maintaining stability, usability, and sustainability.

Are Xank coins pegged to IMF SDR at all time?

No, we are not. Xank doesn’t peg to SDR in the literal sense. It only simulates a peg when needed basis. To peg our entire coin supply to SDR, we would need at least our entire coin supply’s worth of collateral similar to what Tether is doing with USD. Instead, Xank only simulates pegging to SDR to calibrate quantity of coins at receiver’s wallet at settlement point to guarantee the fiat denominated terms promised by the sender.

If not, what are other sources?

It is important to note that Xank Coin will be a free-floating cryptocurrency with built-in stablecoin functionality that is derived from using the Stable Pay feature. Xank coin will be exposed to supply and demand market forces and will vary in value and be priced accordingly and independently on all the exchanges where it will be listed. This does not in any way diminish the usefulness of the Stable Pay feature which, when chosen, provides the stablecoin functionality that is required for certain types of transactions.

Who decides which sources to peg to?

Masternode network determines when the time comes. Unlike Dash, a seat as such 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 who assign 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 ensure that a masternode operator is weighted according to their Proof-of-Merit to the Xank network,  ensuring that the network funding proposals and approvals are governed in a meritocratic way.

Out of the finite amount of 100M Xank token, how many are available for mining?

100m Xank tokens are one-time pre-mind tokens for ICO only. All Xank coins thereafter are issued will have no maximum coin supply limit. 100M on genesis block for setup of 6 initial masternodes, early backers, ICO investors, founders, and founding company. The money supply will increase by Xank Coin Supply Algorithm which is based on the binary logarithm to calculate the emission of the Xank coins. There will be approximately 626M Xank Coins issued after 100 years.

What is the rewarding mechanism for miners?

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, the 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 quickly obsoletes and is characterized by excessive electricity consumption.

What does the name Xank mean?

X can be infinity in mathematics. Thus Xank ® means you can put anything (aka. infinity) in the Bank. Our vision is to become the Bank of Values ®. We feel that in the future, banks will evolve beyond just holding national currencies into holding virtual, crypto and digital assets, that go further than simply recording monetary value to record other values such as time, royalty or identity.

How do you pronounce Xank?

Xank [zangk] is pronounced exactly like Zank [zangk]. Just ask Alexa or Siri!

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