Frequently Asked Question: 2XDN
Question 1: Why is 2XDN being created?
DeFi is becoming extremely popular way to bring additional features to the market. The XDN community determined that these new features could best be delivered by setting up a bridge of our native XDN blockchain to Ethereum platform via an ERC-20 token. Thus we are introducing 2XDN on the popular ERC-20 Ethereum platform. This bridge will offer us a new universe of opportunities in the DeFi space. It will allow the XDN ecosystem to interact with mobile apps such as Komodo, Metamask, Exodus, Jaxx Liberty and integrate into Decentralized Exchanges (DEX), payment platforms, etc.
Question 2: Is 2XDN a fork of XDN?
Answer: No. XDN is the native blockchain of DigitalNote while 2XDN is a new ERC-20 token that will be launching on Ethereum blockchain to enhance overall offering of our DigitalNote suite of products. The token is going to be distributed as staking reward to XDN holders for the XDN they will be staking.
Question 3: Is the XDN coin going to be replaced by 2XDN after the staking reward?
Answer: NO. XDN is our core blockchain and will continue strongly after the 2XDN staking reward distribution. The 2XDN tokens will complement our XDN blockchain and make it more powerful by providing a bridge to a bigger DeFi / dApp ecosystem.
Question 4: How are 2XDN tokens being distributed?
Answer: 2XDN tokens are going to be distributed as staking reward to those who will be staking DigitalNote XDN coins at the block number 300,000 (we will refer to this as superblock) of DigitalNote XDN blockchain.
Question 5: Who is eligible for the 2XDN staking rewards?
Answer: Anyone staking more than 100K XDNs is eligible for the 2XDN staking rewards.
Question 6: Where can I track when exactly superblock (block 300,000) will happen for XDN?
Question 7: Where can I find the Lite Paper on 2XDN?
Question 8: Will we see a combined QT wallet for XDN & 2XDN?
Answer: While we clearly see the added convenience that will provide to XDN/2XDN holders, the value from this feature doesn't justify prioritizing the effort and resources over other items in our backlog. Integrating 2XDN within our XDN QT wallet will require supporting Ethereum addresses in our wallet - and thereby either running a full Ethereum node or constantly integrate with a provider of "Ethereum Node as a Service" - none of which is aligned to our long term roadmap as of now. We will like our 2XDN token to be supported by standard Ethereum wallets and Exchanges, just how most of the existing ERC-20 tokens work today.
Question 9: Is the XDN max supply going to increase as part of this 2XDN staking rewards?
Answer: NO. The current max supply of our native XDN coin will actually reduce exactly by the number of total 2XDN rewarded. This is to make sure that cumulative supply of XDN & 2XDN remains the same before and after the SuperBlock rewards. So if all the 70 Million 2XDN tokens are distributed, we will burn 70 M XDN.
Question 10: How many 2XDN will I get?
Answer: There are two scenarios:
1) XDN being used as a collateral for running Masternode(s): will get one 2XDN for every 50 XDN (ratio of 1:50). So if you are running one Masternode (which requires to have 2 M XDN as collateral), you will receive 2M divided by 50 – that is, 40,000 2XDN.
2) XDN not being used as a collateral for running a Masternode: will receive one 2XDN for staking every 100 XDN (ratio of 1:100). So if you are staking 2 M XDN, you will receive 20,000 2XDN
Question 11: Why are Masternode owners being rewarded more?
Answer: Masternodes are foundational to running our native DigitalNote blockchain. We want to incentivize XDN holders to run more Masternodes to make our blockchain even stronger.
Question 12: Will the price of 2XDN be the same as the price of XDN?
Answer: There is going to be no correlation between the prices of the two assets, they are two different classes of assets and are going to be listed differently. XDN will continue to list as native cryptocurrency of DigitalNote blockchain, while 2XDN will be listed as ERC-20 token (similar to other ERC-20 tokens like Chainlink, Maker, OMG, etc).
Question 13: Are exchanges going to support this 2XDN staking rewards?
Answer: After reviewing many exchanges and offers, we have decided that WhiteBIT is the best fit that can not only include 2XDN Staking rewards, but also fulfill all of our requirements. For users who have XDN on exchanges other than WhiteBIT– they will need to either leverage XDN Wallet (QT or web) or stake masternode(s) to participate.
Question 14: How will staking work at WhiteBIT?
Answer: Yes, that’s right. At XDN Block 300K, the exchange will take the snapshot of your current XDN staking and will calculate 2XDN per the 100:1 ratio and deposit it in your account.
Answer: Here are some important steps in the process you need to fully understand:
- You must stake XDN for 30 days. Your coins will be locked for this period to make it eligible for the 1% SMART Staking Bonus on XDN and the 2XDN
- You can start staking at any time before SuperBlock (Block 300K)
- You must be staking before SuperBlock (block 300 K)
- You will earn one 2XDN per 100 XDN only if you stake for 30 days (nonstop) or more.
- The XDN & 2XDN rewards will be deposited into your account after SuperBlock (block 300K) and on completion of your 30-day staking.
- If you unlock your deposit before your 30 period is up, your funds will be returned to your main account but you will not qualify for the 1% SMART staking rewards on XDN nor the 1 x 2XDN per 100XDN that you stake.
- You will only be paid your rewards after the 30 day SMART staking period expires
Question 15: How will I get the 2XDN staking reward if I am running XDN Masternode(s)?
Answer: In that case, you will fill the form below to provide all the details of your Masternodes. The 2XDN will be deposited into the Ethereum address you mention. Note: Please ensure that the address is Ethereum address and is from a wallet that supports ERC20 tokens. We have tested with these wallets and recommend one of these: MetaMask Wallet, Trust Wallet, Alpha Wallet.
Question 16: How will I get 2XDN staking reward if my XDN is in my XDN QT or Web Wallet?
Answer: There are three things you can do:
1) If you have more than 2M XDN, you may want to run a Masternode. This will be a great option as you will get 2 times more 2XDN than usual. For XDN used in running Masternode(s), use the process in question 15 to register for the 2XDN staking reward.
2) You can continue to have your XDN in the QT or Web wallet – you will have to register for the 2XDN staking reward in that case. We are currently testing a new release of our DigitalNote QT and web wallets which will have an option to register for the 2XDN staking reward. It will ask for the Ethereum address where you would want your 2XDN token to be deposited. Note: Please ensure that the address is Ethereum address and is from a wallet that supports ERC20 tokens. We have tested with these wallets and recommend one of these: MetaMask Wallet, Trust Wallet, Alpha Wallet.
3) You can move your XDN from the DigitalNote wallet to WhiteBIT exchange (before superblock). This way you will get 2XDN staking reward without having to do anything else.
Note: We recommend use of web wallet if and only if you can't use our QT wallet. The reason for that is - you will get staking XDN rewards for your coins in QT wallet. For web wallet, DigitalNote stakes the XDN so that users will be eligible for 2XDN, but there currently isn't a way to distribute the XDN rewards back to each wallet so any rewards earned from Web Wallet will go directly to dev fund. We are working on a future enhancement that will send the XDN staking rewards back to the wallets, but it wouldn't be available before SuperBlock event.
Question 17: What if my exchange doesn't support the 2XDN staking reward?
Answer: You may want to transfer your XDN to DigitalNote QT wallet or web wallet before the SuperBlock and once you have received the 2XDN staking reward, you may transfer your XDN back to the Exchange of your choice.
Question 18: What will be the total supply of 2XDN?
Answer: 70 million.
Question 19: What will happen if some people do not take advantage of the 2XDN staking reward.
Answer: It is difficult to predict how many people will take advantage of the 2XDN staking reward. If everyone takes advantage of the staking reward, there will be approximately 54,569,000 2XDN in circulatory supply. The unclaimed 2XDN will be burnt. After the burn, there will still be approximately 15,341,100 2XDN left to cover Staking efforts and Corporate use over the next 15 years. The final circulatory supply will be made known once the 2XDN staking reward distribution is complete and finalized.
In addition, we will burn an amount of XDN equal to the new 2XDN tokens in circulation - that way the total supply of the two coins will be the same as XDN supply before the SuperBlock reward.
Question 20: Where will the new 2XDN token be listed?
Answer: To begin with, the token will be listed on WhiteBIT exchange and will be immediately available for trade. We are also going to have a Uniswap pool created for trading 2XDN. We are also working with many other exchanges and DeFi platforms. We hope that some of these additional exchanges will also list 2XDN for trading or swap. We will continue to update the community on this as more exchanges support 2XDN.
Question 21: What if I miss participating in the 2XDN staking reward? Will my XDN be useless?
Answer: If your XDN is on WhiteBIT, you will need to stake your XDN per the rules in 14) above to get 2XDN rewards. But if your XDN is on other exchanges, or it is on DigitalNote Wallet, or on Masternode, you will miss the opportunity to get 2XDN unless you follow the steps described in questions 15, 16, and 17 above. Even if you miss 2XDN staking reward, your XDN will remain intact.
Question 22: Do I have to encrypt my XDN wallet in order to stake for XDN?
No. You do not need to encrypt the wallet to stake. BUT if you have the wallet encrypted, you need to unlock it to stake.
Question 23: What is DigitalNote Deployer on 2XDN's etherscan.io page? What are those transactions with other addresses when 2XDN isn't distributed yet?
DigitalNote Deployer is the distribution address for the 2XDN staking reward - it will have 70M total supply at the beginning and will be used to distribute the 2XDN for SuperBlock staking reward.
We have set up some ETH addresses as test addresses to be able to test the code that we have developed to support the new 2XDN token. The transactions listed are related to testing.