In October of last year, Ethereum’s Gas prices suddenly surged, and the source of this situation can be traced back to the XEN Crypto project. The white paper of XEN Crypto introduced its goals and mission, including decentralization, transparency, resistance to censorship, peer-to-peer value exchange, and the concept of ownership. In addition, the project was highly regarded for its “equal participation” approach, attracting countless on-chain players overnight and becoming a highly anticipated “social experiment.”
XEN Crypto’s emergence inspired countless later generations to consider whether the mechanism design could be optimized based on this to ensure that later generations still have sufficient motivation to participate. It is based on this idea that FREN was born. FREN introduces the concept of “time banking,” which aims to ensure that newly issued tokens increase linearly over time and establish a mechanism to control the inflation rate to maintain a healthy balance of supply and demand.
Further optimizing XEN
Undoubtedly, XEN’s mechanism design is excellent, but there are also two issues that cannot be ignored: one is that its multi-chain model uses parallel deployment strategies, resulting in further dilution of various complex problems and value consensus, and the other is that throwing and inflation make the zero-sum game of the “pseudo-fund disk” model lose its experimental effect as it goes on.
FREN has its answers to both of these issues: in response to the former, FREN has developed a layered multi-chain architecture that aims to maintain the core value consensus on the FREN chain and achieve seamless interoperability with various blockchain networks.
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In this layered multi-chain architecture, FREN adopts a layered asset cross-chain method. It solves the problem of asset transfer by generating new tokens on the main chain and strictly controlling the inflation rate to maintain a strong value system. In this way, FREN can achieve efficient transfer and utilization of assets without sacrificing the integrity and security of the underlying value system.
In addition, FREN dynamically allocates quotas to different subchains and uses the Rollup model to achieve cross-chain liquidity. This model ensures that the total liquidity of the subchains is equal to the issuance on the main chain. In this way, FREN’s ecosystem can expand across multiple chains, achieve larger-scale transactions and cooperation, and provide greater flexibility and convenience for the interaction between different blockchain networks, bringing more opportunities and possibilities to users and developers.
As an “upgraded version” of XEN, FREN further optimizes on the basis of the former by adopting a hierarchical multi-chain architecture, optimizing formulas to minimize the impact of new token issuance, and innovatively introducing the concept of time banking to ensure control of token supply. Although FREN has taken its own step in this social experiment, the new model still needs time and the test of the masses. Only through practice and user participation can we better understand its effectiveness and potential. Let us look forward to the future performance of FREN, and see if it can achieve its goals and promote the development of decentralized finance.