In this article, we outline a concept defined as Xyxyx Issuer Subnodes (XISs).

Please note that this is a research article, not a protocol announcement. Xyxyx Issuer Subnodes (XISs) still require further discussion within the community and development. Eventually, it could be proposed as an XIP for public discussion if it is considered for implementation in the Xyxyx Protocol.

Introduction

Xyxyx Issuer Subnodes (XISs) is a novel concept that structures a credit-based cryptoeconomic system around XYXYX, Xyxyx Issuer Nodes (XINs), and Xyxyx Launchpad through the integration of an Xyxyx-native decentralized marketplace (‘‘Xyxyx Marketplace’’).

XISs operates by enabling each XIN to be temporarily rented as a subnode in the Xyxyx Launchpad, powered by Issuance Credits. Each Issuance Credit represents one deployment on the Xyxyx Launchpad.

Framework

• Xyxyx Marketplace: A Xyxyx-native decentralized marketplace where XINs are listed to be rented as XISs.

• Xyxyx Issuer Nodes (XINs): The nodes from which subnodes are derived.

• Issuance Credits: XISs are powered by Issuance Credits. Each Issuance Credit provides access to one deployment on the Xyxyx Launchpad.

• Xyxyx DAO: Dictates the price of Issuance Credits and Xyxyx Marketplace parameters.

Functionality

• Credit-based: An XIN can be rented as an XIS with as many Issuance Credits as the renter needs. For example, to perform 10 deployments, a user would purchase 10 Issuance Credits from an XIN, temporarily incorporating an XIS with ‘‘energy’’ to execute 10 deployments on the Xyxyx Launchpad.

• Subnode validity: Each node (XIN) can be rented as a subnode (XIS) for a fixed period of one hour, regardless of the number of Issuance Credits acquired. After this 1-hour period, the XIN rental as an XIS loses its validity.

  • Note: The validity of an XIS expires based on two scenarios: (1) when all credits are used, or (2) when the one-hour period ends.

• Pricing: The price of Issuance Credits is dictated by the Xyxyx DAO or a governance council (or ‘‘subDAO’’) specifically incorporated to manage it. The DAO can adjust the price of Issuance Credits at anytime. For example, the cost of one Issuance Credit might be 0.1 ETH today, but it can increase to 0.15 ETH tomorrow if so decided by the DAO.

• Restrictions: When an XIN is rented as an XIS, it cannot be rented out to others during the rental period, ensuring exclusive use for the renter.

  1. Maturation period: New operators of an XIN must wait 24 hours after incorporation before they are allowed to commercialize their XIN as an XIS.

  2. Neutral period: After a lending period, the XIN must remain out of the market for one hour before becoming available for rent again.

• Automatized Lending: XIN operators do not need to take any action in the marketplace:

  • Nodes are automatically incorporated and listed for rent based on on-chain activity related to XYXYX and XINs. When an address has owned an XIN for more than 24 hours, the node automatically becomes available for rent in the marketplace. Essentially, if an XIN is held for over a day, it will be automatically listed as available for rental.

  • The lending process is trustless and frictionless between the marketplace, the lender, and the renter. Payouts generated by Issuance Credits are automatically deposited into the XIN operator's address at the time of lending. This means that the system is designed to automatically handle financial transactions, ensuring that XIN operators receive their earnings from Issuance Credits without needing to take any additional steps. Once the rental of an XIS occurs and Issuance Credits are paid, the corresponding payouts are directly and immediately transferred to the XIN operator's address. This eliminates the need for manual withdrawal or claiming processes. XIN operators simply receive their earnings as soon as the lending transaction happens.

Interface

See below a prototype interface for the Xyxyx Markeplace, which embodies the concept of Xyxyx Issuer Subnodes:

• Node Status

  • Available: An XIN is available for rent as an XIS.

  • Rented: An XIN is currently being rented as an XIS.

  • Neutral: An XIN is in a one-hour neutral period following an XIS rental (i.e., currently unavailable for renting).

  • Maturation: An XIN is in a 24-hour maturation period following its incorporation into a new address (i.e., currently unavailable for renting).

Annotations

1. If an XIN is transferred between wallets while rented, the rental remains valid. However, the new wallet must wait 24 hours before it can begin renting out its subnode (Maturation Period).

2. Once the credits of a subnode are used, its validity ends, and the XIN automatically enters a "Neutral" status.

3. While an address is renting an XIN, it cannot rent subnodes from other XINs.

4. Subnode renters can’t compound with more credits into a lending that is in progress. This means that once a subnode (XIS) rental period has begun, the renter cannot add additional Issuance Credits to that ongoing rental session. If a renter initially starts with a certain number of credits, they must use all of them within the current one-hour rental period. They cannot extend the session or increase the number of credits during that period. If they need more credits, they would have to wait until the current rental period ends and then start a new rental session with additional credits.

5. Scalability can be achieved and effectively managed by the Xyxyx DAO via the Node Policy (NP) of XINs and the price of Issuance Credits.

6. An XIP that proposes the implementation of Xyxyx Issuer Subnodes (XISs) must also include in the proposal the creation of the Xyxyx Marketplace.

7. To fully understand the concept of XISs, it’s recommended to first fully understand the concept of XINs.

Conclusion

This article provides an overview of the concept of Xyxyx Issuer Subnodes (XISs). Further development and extensive community discussion are still required for its incorporation and implementation into the Xyxyx Protocol.