1 00:00:14,230 --> 00:00:19,113 [HOST] Welcome to X1 Report, your source for the latest in blockchain news. Today, we're diving 2 00:00:19,113 --> 00:00:24,107 into the world of X1, the largest fork of Solana, and exploring its unique economic model. 3 00:00:24,357 --> 00:00:29,980 [ANALYST] X1 inherited many of Solana's features but has introduced a significant change: a burn 4 00:00:29,980 --> 00:00:35,341 mechanism that could make its token supply deflationary. This is part of a broader 5 00:00:35,341 --> 00:00:40,507 strategy to address some of the core criticisms of Solana's inflationary model. 6 00:00:40,757 --> 00:00:45,610 [HOST] According to X1 Labs founder Jack Levin, 85 million XNT will be burned as a tribute to 7 00:00:45,610 --> 00:00:50,520 Alpenglow, the upgrade that cut Solana's finality time about eighty-five times. This is 8 00:00:50,520 --> 00:00:55,316 just the beginning; quarterly burns are planned to keep the supply around one billion 9 00:00:55,316 --> 00:00:55,711 tokens. 10 00:00:55,961 --> 00:01:01,827 [ANALYST] The burn mechanism is crucial because it allows X1 to act on its economic strategy. Unlike 11 00:01:01,827 --> 00:01:07,693 Solana, where the foundation does not own most of the tokens, X1's Foundation holds almost 12 00:01:07,693 --> 00:01:12,516 half of the XNT supply, giving them the power to make significant changes. 13 00:01:12,766 --> 00:01:17,438 [HOST] This deflationary approach is part of a larger plan to make X1 more attractive for 14 00:01:17,438 --> 00:01:22,452 developers and users. The cost of running programs on X1 is significantly lower compared 15 00:01:22,452 --> 00:01:27,123 to Solana, making it an ideal environment for building decentralized applications. 16 00:01:27,373 --> 00:01:33,184 [ANALYST] X1's economic model also includes a treasury that can fund various initiatives, including 17 00:01:33,184 --> 00:01:39,060 burns, liquidity provision, and partnerships. This gives X1 more flexibility in responding 18 00:01:39,060 --> 00:01:41,411 to market conditions and user needs. 19 00:01:41,661 --> 00:01:46,630 [HOST] Another key aspect of X1 is its focus on Solana's liquidity. The Terminal, an exchange 20 00:01:46,630 --> 00:01:51,773 counter, would sell XNT at one fixed rate and buy it back at a lower one. Levin wants the 21 00:01:51,773 --> 00:01:54,951 spread used to buy XNT on XDEX and potentially burn it. 22 00:01:55,201 --> 00:02:02,007 [ANALYST] XCORE, a Solana token designed for traders, pays its holders in wXNT, the bridged XNT. 23 00:02:02,007 --> 00:02:08,891 Every trade fee on Solana buys wXNT from a Solana pool, aiming to create deep liquidity 24 00:02:08,891 --> 00:02:11,265 for XNT on Solana's ecosystem. 25 00:02:11,515 --> 00:02:16,776 [HOST] Additionally, X1 has set aside 5% of its supply for Solana liquidity. The goal is to have 26 00:02:16,776 --> 00:02:22,096 50 million XNT on Solana, which would significantly impact the market dynamics and provide 27 00:02:22,096 --> 00:02:24,401 a direct link between the two networks. 28 00:02:24,651 --> 00:02:30,492 [ANALYST] The economic model of X1 is designed to be more user-friendly and developer-friendly than 29 00:02:30,492 --> 00:02:36,268 Solana. With Alpenglow planned for faster finality, and much lower transaction costs, X1 30 00:02:36,268 --> 00:02:40,075 aims to attract a broader range of applications and users. 31 00:02:40,325 --> 00:02:45,248 [HOST] However, several elements of this plan are still in development or decision-making stages. 32 00:02:45,248 --> 00:02:50,116 The 85 million XNT burn has not been executed yet, quarterly burns are not yet published, 33 00:02:50,116 --> 00:02:53,999 and the Terminal's rates and XCORE allocations are still being decided. 34 00:02:54,250 --> 00:02:59,655 [ANALYST] Alpenglow adoption is also pending, and while X1's liquidity on both chains is currently 35 00:02:59,655 --> 00:03:04,876 thin, the potential for growth is significant. If all these elements come together as 36 00:03:04,876 --> 00:03:08,500 planned, X1 could offer a compelling alternative to Solana. 37 00:03:08,750 --> 00:03:13,752 [HOST] Join us next time for more updates from the world of blockchain. Stay tuned to our X1 news 38 00:03:13,752 --> 00:03:18,699 page for the latest developments and follow every official X1 app and channel on Official 39 00:03:18,699 --> 00:03:19,033 Links.