Community questions about Blue-Chip, Updates, and more
Question 1: "Per the recent announcement, if someone doesn’t pay the monthly membership fee, the XON still emits rewards. Does it mean that people can use this to balance out the membership periods and be able to pay all at once?" (For ex: resetting certain XON’s 28-day counter back to 0, then start again for all XONs they have)
A: So what he’s talking about is some people creating XONs, then some later, and some are due before others, but some may prefer XONs are due the same day. The answer is no. Look at it as a negative number. Let’s say your membership is due in 5 days on a set of XONs, and two days on another set of XONs. Some will be one negative number, and others will be another negative number.
The reason for that is that certain things happen once you’re a certain number of days late. I know that some want their XONs due on the same date, but due to the nature of how building XONs work, that’s unlikely. Now, if you’re late, as long as it’s before 28 days late, you don’t lose any rewards or pending rewards.
Question 2: "When we deposit XETA into a financial services pool, do we pay the claim fees or not?"
A: I've mentioned from the beginning: Fees (claim and membership) fund everything. When you claim, 50% goes to the treasury, 25% to liquidity, and 25% to operations. If you bypassed those fees, that funding would go away.
So, that would mean no buybacks, airdrops, further investments, and further price stabilization. So you’ll need to claim the tokens to your wallet followed by depositing them into the financial services. Everything that’s in the tokenomics is there for a reason.
Question 3: "What is the current amount of buybacks, please?"
A: If you go to XetaCapital.com and click news, you can see the August Profit report summary (here). If you scroll down, you can skip to the meat and potatoes and see two withdrawals of 75k and 50k towards the later part of the month. Since then, there hasn’t been nearly that much. I believe it’s about 30 or 35k, but that could be a little bit off.
That will be outlined in the next report, which should be out fairly soon after the month ends. There have been projects that I know in the first 30 days that had to do half a million in buybacks, due to not having any buy volume. That to me is a testament to the utility, what we’re doing, and how amazing our community is. We said we’d do buybacks, and that’s exactly what we’re doing.
Question 4: "Is there anything preventing us once we access Financial Services from investing money on behalf of a family member or a friend? They may give us cash to buy XETA or buy XETA themselves and send it to our MM wallet. I appreciate that contracts and tax implications would need to be worked out on our end with the investor."
A: I can’t tell you to invest or do anything on behalf of anyone else, I don’t offer any kind of advice. As long as you have the number of XONs required to access a service, and as long as a pool is open, you can deposit the XETA in your wallet.
You’d have to do that on your own accord, but as long as you have the number of XONs and pools open, you can deposit your tokens. Just keep in mind, it’s your wallet, so accounting might be a little fun/difficult.
Question 5: "With the process of pulling funds and receiving USDC in that process, what happens to the initial XETA investment? Where does the XETA go and who does the conversion into USDC?"
A: You take your XETA token, and you deposit them into the service. Your value is locked in as soon as you do that. It doesn’t matter if the price goes up or down after. When you go and check your profits and your principle and you withdraw, you get USDC back. So, the process is essentially an OTC. Your tokens are being exchanged for USDC on the back end.
That process is done with the profits that we’ve been earning inside the XETA Capital Fund. We have some ideas, but we can’t say for sure. We can send them to the rewards pool and send it to liquidity, I don’t want to lock us into one option. We’ll make the decision based on where the token price and business are. You’ve got to be able to turn a profit to do this, you have to have wise and sound investment professionals.
Question 6: "When we put XETA into a XON and we put that XETA into the Financial Service and pull it out as USDC, that causes a taxation cost basis calculation nightmare. If all I had to do was put XETA in and take XETA out, it wouldn’t be a problem. Any suggestions on how to properly account for this lack of a paper trail? Will we ever be able to download CSV files or something? Will Gaxsys give us some kind of “earnings report” as individuals?"
A: When you claim your XETA, your claimed XETA has a value. When you deposit your
XETA into services, you’ll be able to see your principal. I think the best thing is to keep records of all your actions, instead of having to look back in the future and try to figure it out.
The idea is to have reports, previous data, and all that stuff, but it won’t be a day one thing. If you claim your rewards and immediately deposit them into the pool, it’s a lot easier.
A: Next, a message from the Prime chat. I’m not going to cite the person because that’s a private chat. However, the gist of it is the person is stating that they think the claims limit is signaling that there’s some problem, or something was overlooked.
That’s not the case, at all. The reason this was implemented is that utility is literally right around the corner, and because of that, it’s time to make things a fair and level playing field. It’s level because everyone has to do the same thing. This will fund the project operations that are already going very well. It should’ve been there on day one, but because the utility wasn’t there on day one, we didn’t push the issue.
To drive home the point, let’s do a little bit of math. Let’s say you have 75 XONs, you’re paying your $15 membership fee for those 75. That costs $1,125 dollars for that 28-day period. Assuming the token price is under $150, every time you claim it’ll cost you $375. So if you have to claim every 10 days (which isn’t mandatory) that comes out to the same number, $1,125. Meaning a grand total of $2,250 to maintain 75 XONs. Now assuming these 75 weren’t bought in the presale, they’re earning 225 tokens per month. Assuming we have a $100 token price, if you sold all tokens at once, you would have $22,500. Your cost to maintain would be exactly 10%.
You are taking a total of your profit going towards your membership and claims, giving you access to an array of financial instruments that you’d typically need millions to get access to. Of course, if you were claiming once a month, it may look unreasonable. However, claiming 3 times in a 30-day period doesn’t appear to be unreasonable. The bottom line is that these services have to be funded, and while the profits are there, this is going to flat-line claims in the sense that everyone has to do the same thing.
I do agree we should’ve announced this on day one, and moving forward if anything like that is going to be done later, we will let you know far in advance.
Question 8: "Just wondering based on the current tokenomics and liquidity, what is the time frame that we as a community can xone out for roughly?"
A: I think he’s asking about the lifespan based on the current scenario. Where we’re at, we have many years. In a lot of projects, there comes a point where they run out of tokens. It’s sort of like a real economy where the central bank decided to print more.
In this space, this is a problem still. The way we decided to do it, is just creating another token and doing it all over again. Months before this happens, we’re going to announce our minting of a new token, the fact that we’ll migrate everyone’s XONs over, and migrate the liquidity 1:1.
It depends on if all of a sudden growth explodes at a certain point, but even if it does, we have accounted for being several years out from needing a migration.
Question 9: "The team asked us about what other services we would like to see in the future, and I think some popular ones were offshore banking, loans, and I believe real estate. Are those still strong possibilities for future services?"
A: Those are some options. We’ve had a lot of conversations on the back end, about other services that we haven’t mentioned because they’re still in the idea phase. I mentioned this in my latest video with Critical Complex, but, there’s no reason why we can’t provide services with other partners. We’ve invested in MetaVersus, Aloha, etc.
There are a lot of different directions we can take. The idea is to get the first 3 out, and then reconvene and have these conversations again. It’s almost like we have too much utility, too many options, and we don’t know which to do.
Question 10: "Should we count on word of mouth and the team’s marketing plans, or will the team want more activities from us to attract more people in? I’m thinking of coordinated efforts, such as having the active members here joining large yield farming project discords and pushing their DAO to invest in XETA, etc. Is that a good or bad thing?"
A: I think our crowd is calmer. I want to keep professionalism in Discord as much as possible. I’ve seen Discord go downhill. What tends to happen is the team gets lenient on things, and it spirals out of control. I’d like for you to go spread the word if you’re excited about what we’re doing. I haven’t quite coordinated anything like that, I’d have to give some thought to how that may be perceived. I will say, there have been several projects who have already approached us for wanting to get involved in financial services.
It’s interesting because they have a certain amount of funds, are looking to get into XETA, and we’re trying to figure out how to establish a mutually beneficial relationship with these projects. There is an idea that will benefit the community and other projects as well, but we aren’t ready to talk about that just yet. Now, here are some updates we’re working on. You’ll notice that when you go to the Dashboard now and connect your wallet, you’ll see a disclaimer. I do want to show you something else. If you come in and use the Purchase XETA button, the UI is changed and USDC/XETA is the default pair.
Also, there are no longer 100 confirmations when you perform transactions, there are only 20. That allows all transactions to go quicker, and it’ll speed up more over time. Another addition coming, is that the calculator will have a compound feature. That’s being built. The charity wallet is now being filled automatically, and we’ll be making ongoing donations to James Project.
The short answer is: Yes! If you're excited about XETA Capital and everything we're building, please share the word, and be sure to provide your FriendXON link.
That's a wrap! Thank you to our wonderful community for asking such excellent questions. We appreciate each one of you, and I sincerely hope this sheds some more light and provides some further insight into everything we are building here at XETA Capital.
Our utility is right around the corner! Our first of three financial services, the Blue-Chip service, is set to be released ANY day now! Once that is enabled, the Private Equity and HFT will come shortly after.
Things are about to get even more exciting here at XETA Capital. Thank you for taking being on this journey with us!