An incencentivization token
XUP is the native token of Unoparty. It is a technical necessity for adding advanced features to Unoparty, which by nature require a protocol aware currency. Unobtanium can only be aware of UNO, while Unoparty can be aware of both UNO and XUP itself. This makes it possible to escrow funds, trade in a decentralized manner, and harness the full potential of programmable money.
Note: It is a common misconception that XUP is a competitor to Unobtanium, when in fact it cannot exist without it. And even though XUP is not a traditional currency, it serves a steady and critical purpose within the Unoparty ecosystem.
How was XUP launched?​
The supply of XUP will be created in a process called 'proof-of-burn' that start sometime during 2022. During this period, anyone will be able to exchange Unobtaniums for XUP automatically on a protocol level under the following conditions:
Users sent their UNO to a verifiably unspendable Unobtanium address with no known private key. (uNopartyXburnXXXXXXXXXXXXXXXWJmsqn)
Each UNO was automatically exchanged for a number of XUP between 2000 and 2500, with more being rewarded the earlier the burn took place.
Unoparty also gives an additional 25% XUP created from each burn to a developer fund address (uVVuwXm2mDK9pr9XkWT5k7ihQyoSC8y2MW) this was chosen to be done to help incentivize upgrades and maintenance by the developer/s and because the work for this project was done for free.
The reward bonus decreased linearily with the block index.
Each address was limited to 5 UNO.
Since the UNO on the burn address will never be spendable again, they are considered destroyed or 'burned'. The main advantage of using this process is to create an equal opportunity for all users, including the founders of the project. The result is that nobody started out with a pre-existing supply of XUP. This method is relatively rare in the crypto space, because it does not provide the founders with starting capital. This, however, means that it is a truly decentralized platform similar to Unobtanium's proof-of-work system.
Is XUP an alt-coin or competitor to Unobtanium?​
No. XUP cannot exist without Unobtanium, as Unoparty extends the basic features of Unobtanium with proof-of-publication, oracle betting, decentralized exchange, automatic escrow, order matching, and smart contracts.
Can more XUP be created?​
No. The supply of XUP is fixed, and decreasing because of fees being burned.
What is XUP used for?​
XUP is the fuel for smart contracts. When smart contracts are running, fuel is used for each execution step. Appropriately enough, this fuel is burned (destroyed). This means that the supply of XUP is continously decreasing. However, the cost of fuel adjusts proportionally as the supply of XUP goes down, so that it cannot reach 0.
XUP is always the easiest token to trade against, as it is represented across all exchanges that support Unoparty. It is also used for anti-spam fees when registering named tokens, and when making distribution payments to token holders. The betting system also uses XUP.