When Bitcoin (BTC) first launched in 2009, critics were quick to raise questions about the impact of the lack of backing on the asset. This negative view was maintained even with the abandonment of the U.S. gold standard in 1971. Although fiat currencies offer no inherent value, this thought process has been enough to deter risk-averse investors from avoiding investing in cryptos altogether and others to abstain from using it in their day-to-day transactions.
While cryptocurrency is volatile, it still offers benefits from traditional fiat currencies. As a result, finding a more stable option for cryptocurrencies could prove advantageous for areas where local currencies are highly uncertain.
In part, this is what has led to the creation of the global token, Ixinium’s XXA. The token was created with a physical backup with force majeure protection. Users can liken this to all of Ixinium Foundation’s precious metal holdings being insured with total replacement value by the custodian service providers. Most recently, the team has initiated a precious metal purchasing program in 2020, which is still ongoing.
Leveraging the capabilities of Stellar (XLM), XXA cryptocurrency can theoretically offer better value than traditional spot gold and other electronic safe-haven assets. Further solidifying this, the Ixinium team has been testing the XXA tokens buyback function for the past few months, which has moved from the process testing to the live beta-testing phase. This process adds to the base value of the Ixinium XXA token and builds a precious metals collateral value backing that is more significant than the market value of the XXA token.
The XXA buyback function acts as a step forward, as the team has made a landmark by informing the XXA burn schedule earlier this month. News has since been released that half of the issued XXAs will be burned by the end of 2022, reducing the total supply from 540 million to less than 270 million, further increasing the scarcity of these tokens.
Turning staking upside down
The project started with the goal of offering low-cost and instantaneous mobile payment transfers anywhere in the world as part of a greater decentralized global marketplace. The team shares firsthand how expensive transactions could be and the kind of inconvenience this could cause customers. Ixinium’s team then looked to the Stellar network as one of the fastest and more inexpensive crypto payment networks that exist today. For perspective, it is estimated that Stellar allows for over 20 million transactions within less than $100 with a 2-5 second transaction speed.
However, XXA is not limited to mobile transfers; the team also introduces staking to their ecosystem. Staking has gained popularity as a widespread function in the decentralized world and is one of the most common ways to earn more tokens. Users can participate in XXA autostaking by using any non-custodial Stellar wallet as long as it allows you to add trust lines. Users then become eligible for rewards as long as XXAs are held in the wallet. If you transfer XXA to a different address, which will start receiving rewards instead of your account.
Taking on fellow networks
The team assures their community the most significant Stellar update is coming and may be what it takes “to lift Ixinium to the next level.” More specifically, Stellar is targeting to open decentralized finance (DeFi) and automated market maker (AMM) functionality, bringing along buyback, liquidity pool, coin burn, and lending functions for the XXA.
Ixinium’s team is also looking to expand its development and production towards the Binance (BNB) and Ethereum (ETH) networks. Plans are currently in place to release the Ixinium Finance DeFi app on the Binance network, which provides advantageous fee structure allocation that may be more generous for liquidity providers. Looking at the Ethereum network, Ethereum XXA is also under development as a token backed by gold, complete with a fixed supply and extra functionality.
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