Fractionalized Node Distribution
A critical part of XR One's node distribution strategy is to get nodes in the hands of a very diverse group of participants and into the hands of gamers. Traditionally, the node investor persona has been a small niche and XR One strives to democratize access to nodes. To this end, XR One will offer fractionalized nodes at a much lower price point than whole nodes. With these lower price point nodes we hope to on-board thousands of people in geographically diverse regions with different price points and on-board gamers as node operators.
Mechanism of action
Creation of fractions: Fractional node licenses are created by locking up whole node licenses in a fractionalization smart contract
Node operation: The XR One foundation will bear the responsibility of operating these nodes by delegating them to a distributed set of node operators.
Reward distribution: The rewards generated by the full nodes locked in the fractionalization contract are distributed to all fraction holders. So the fractionalized license acts as a claim against rewards generated by the whole node licenses.
Fraction distribution
Fractions will be distributed by a broad range of mechanisms; the below are some of them:
Gaming Guilds: Gamers traditionally have had lower price points than node investors. XR One is partnered with the largest gaming guilds to offer them a whitelabeled sale experience, converting guilds with communities in millions into fractional node launchpads.
XR One website: XR One will run its own instance of the fractional node sale where people part of partner communities can come in to buy these fractional node licenses. Questers on the XR One platform will also have exclusive access to this sale.
Launchpads: Launchpads with communities in SEA, SA, Latam and Africa will also offer fractional nodes to their communities. We are committed to have our node operating community to be geographically distributed.
Reforging
By collecting enough node fractions over time one can reforge a fractional node license into a whole node. Fractional nodes by themselves receive slightly lower rewards on account of node operation being handled by the XR One foundation. So users who collect enough fractions might want to reforge them into a full node. Collecting fractions and reforging them also offers multipliers on the XR One questing platform.
Comparing fractional and whole nodes
A lower price point entry into nodes, but a similar reward rate to whole nodes
Higher price point
A product tailor made for gaming guild members as well as investors in countries with lower dollar spending propensity
A product for high conviction, high spend infrastructure investors
Fractional nodes will have a 10% fee taken from the rewards before distribution
No fee levied, full rewards allocated available to the node license
Node operation as well as reward distribution is completely handled behind the scenes offering a very seamless UX
Full node licenses have to be delegated to node operators and be run locally by the user. The XR One node sale has several delegation options from the best node operators in the space.
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