Earlier this year, one of the world’s largest VoD platforms revealed its subscriber growth was falling for the first time in its history. Elsewhere, music streaming data showed that a majority of artists were upset with how little they made after platforms and record labels took their share.
It seems in a world of infinite content, its consumers and creators are not happy with how it’s distributed and monetized.
That’s because, in our Web 2.0 platform dominated world, content creators and consumers build all the value but have no say in what content goes on the platform or how it’s distributed. It is time the Web 2.0 content economy model underwent a Web 3.0 native upgrade.
Web 3.0 models are already reshaping the gaming industry. Play to Earn games are changing the way user ownership and incentives work. And internet historians and observers will tell you that where games and gamers go, digital consumer products and internet culture follows.
It’s only time before the content and entertainment ecosystem take the crypto pill and step into a more decentralized blockchain-driven world.
To introduce millions of mainstream users to the world of crypto powered entertainment, it is vital to get the content right.
So we began by implementing a novel “Play to Earn ‘’ model for streaming in the form of Mzaalo, a streaming app. We launched it in 2019 to democratize access to premium content. Users were incentivised with in-app Mzaalo coins to view ads and perform other actions while consuming content across 12,000+ movies, web shows, and live TV. They could redeem earned coins against 600+ reward partners in our ecosystem.
By launching the in-app XET (Xfinite Entertainment Token) conversion feature, we built the bridge for users to seamlessly cross over to Web 3.0. With a single click, Mzaalo users can now turn Mzaalo coins into XET and complete the “Play (watch/engage) to Earn” economic loop and become a part of a blockchain-powered ecosystem.
They will be able to use XET to buy various NFTs on soon to be launched MzaaloNFT and own content of their favourite stories and access experiences with celebrities they love. Eventually millions of users from every walk of life will have a suite of products and experiences to bring them closer to the content and creators they have admired through the screen.
While we ramp up utility for XET in our product lines let’s zoom into the XET token, its distribution model, release schedule, and future potential. XET is the native currency and the backbone of the Xfinite ecosystem. As we scale Xfinite to a community-owned network it will become the atomic unit of ownership of the network that drives the decentralised entertainment network we are building.
XET will carry various use cases within the Xfinite ecosystem with rewards, staking, and medium of exchange as its core purposes. XET will
XET token distribution model has been carefully planned to support the long term growth and sustainability of the network.
4 billion XET tokens were minted at the genesis and a fixed supply model is implemented i.e no more XET will be minted anymore. The total supply of tokens is distributed into five pools: Community rewards, Staking rewards, Strategic partners, Token sale and Team. The distribution is as follows:
After Unlock 2.0 (on 16th March 2022), the updated circulating supply is 960,000,000 XETs. This is in accordance with the updated release schedule below.
3.75% of the total community supply is unlocked on March 16th (6 months from Token Generation Event aka TGE) to fuel XET into our product and NFT marketplaces and enable our users to participate in the XET economy.
Future unlocks from this pool will be at the rate of 1.25% of the total supply every quarter for the next 5 years.
XET from this Community rewards pool will be utilized to incentivize creators, users of the Xfinite product suite and contributors, community members of the Xfinite network. The participants will utilize the pool for taking part in bounties, NFT airdrops, and building DAO guilds for creating community-driven content and launching movies in the metaverse.
1.25% of the total supply is unlocked on March 16th, i.e, 6 months from TGE to scale the XSPO initiative that we announced a few months ago.
0.5% of the total supply will be unlocked every quarter.
XET from the staking rewards pool will be used to bootstrap liquidity across various decentralized exchanges and provide the foundation for the decentralized entertainment network we are building.
5% of the total supply is unlocked on March 16th (6 months from TGE). The strategic partner pool will undergo a staggered release.
5% in 12 months from TGE, 7.5% in 18% from TGE and 7.5% in 24 months from TGE.
Strategic partner pool tokens are allocated to all the initial content partners, equity contributors and future content collaborators of the Xfinite ecosystem. This pool is reserved to enable quality content production, beneficial partnerships and distribution at scale.
6.25% of the total supply was unlocked on Dec 16, 2021 (3 months from TGE). 6.25% of the total supply was unlocked on Mar 16, 2022.
12.5% of the total supply will be unlocked on September 16, 2022.
Token sales will take place in a structured manner on an invite-only basis.
5% of the total supply is unlocked 6 months post-TGE i.e March 16, 2022.
6 months from date of TGE: 1.25% of total supply
12 months from TGE: 2.5% of total supply
24 months from TGE: 2.5% of total supply
36 months from TGE: 3.75% of total supply
The team pool is designed with a view that there will be a dedicated core group of builders locked in for the long term until the network becomes truly decentralised and sustainable.
As we move forward, we will continuously monitor the token performance to ensure adequate liquidity and stability in line with its utility.
Some of the challenges we are looking forward to is understanding how rapidly XET will be consumed by Mzaalo users vs token participants and how we can build sustainable economies between the two.
It’s not every day a token barely a year old has the potential to have millions of users tied to real-world utility. And that’s why we are excited to see how XET and the economics evolve over the next few years.
The guarantee of a locked-in value in the form of content and experiences, along with a future-ready blockchain protocol like Algorand promises an exciting future.
Stay tuned for more updates in the coming weeks and months and let us know about your take on the XET roadmap below. What works, what could be better, and anything else you have on your mind!
Until next time, onward and upward!