How XEN Torrent works
Phase 1
As illustrated in the diagram above the classic way to mint XEN is through claiming cRank through the ERC-20 protocol.
XEN Torrent gives the user the ability to bulk mint multiple cRanks at once. The protocol introduces VMU - virtual minting units. It's a virtual wallet created by the XEN-torrent smart contract.
Each VMU is like a container for a claimed cRank from XEN’s base ERC-20 protocol. The VMU's are controlled by the user through the same smart contract. No one has the keys to these virtual wallets. Access to them is controlled by the XENFT that you receive.
When you mint a XENFT you choose the number of VMUs you want to make. The number of VMUs you can make is anything from 1 to N, where n is limited by the networks gas block limit.
The user also chooses the mint term which will be the same for all VMUs holding cRanks.
The XENFT is the key to the bulk mint. XENFT will acts like a key that unlocks the ERC20 tokens (XEN) later.
XENTorrent(ERC721) is like a minting factory - which creates multiple XENFT records each with access to multiple VMUS continuing cRanks.
Since XEN Torrent tokens adhere to ERC-721 NFT standard, they are transferrable. This means that one user can transfer a XENFT owned by the user to another user .
User can go to Opensea or any NFT marketplace directly and sell it to someone. So the buyer can come straight from the NFT world and take part of the 1st principles of crypto with one transaction. You will then transfer the future mint rights to that person, since they are held though the XENFT.
XEN Torrent XENFT serves as an access token to claim rights to the bulk XEN minting. It’s a classic bearer token, which means that whoever owns (presents) XEN Torrent Token can claim the proceeds of XEN ERC-20 mint.
A user can (either through a wallet address or a smart contract) own an unlimited number of XENFTs.
Phase 1 - Burn
For the issuance of some XENFTs user is also required to burn XEN
The diagram above illustrates how the protocol actually interacts for that action. The burn happens in the XEN torrent contract. You give permission to the XEN torrent contract to burn your XEN and then it calls the proof of burn function native to the XEN protocol. Technically your XEN will then be sent to a null address where it cannot be sent out from.
The amount of XEN you want that the user burns needs to be in the users wallet for the transaction to successfully go through.
Phase 2
At maturity date user can claim the mint of XEN, with the XENFT, at xen.network.
User then perform a bulk ClaimMintReward with the XEN Torrent contract.
The VMU, virtual minting units self-destruct, and in turn performs a claimMintReward to XEN protocol, just like a users would have normally with the classic method.
XEN protocol then then mints the Xen tokens and transfers them to you address (which could be your original address or any other address in the network).
The output of the transaction is XEN in users wallet and a redeemed XENFT.
XEN minting operation initiated via XEN Torrent smart contract is run by XEN Crypto ERC-20 smart contract; whereby the same rules of claiming rank and claiming mint rewards apply. XEN minting initiated via XEN Torrent has no special treatment, it shares the same Global Rank counter as direct operations via XEN Crypto. Same is true for mint claim/withdrawal penalties; after 7 days you claimable reward is down to 1%. Users are encouraged to be mindful of the maturity date and the 7 day withdrawal time window.
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