Basic Functions of the Xenea

This chapter describes the basic functions and the overall structure of Xenea with Figure 1.

1. Consensus Algorithm: Proof of Democracy (PoD)

Xenea adopts a proprietary consensus algorithm called Proof of Democracy (PoD). PoD combines two primary node types: Escrow Nodes and Rep Nodes.

• Escrow Nodes handle blockchain initialization, generate new blocks every 60 seconds, monitor network connectivity, and randomly select Rep Nodes as voting participants. They also hold escrow accounts, temporarily retaining tokens until transactions are validated.

• Rep Nodes serve as voting candidates and can aggregate up to 10,000 mobile users. Acting on behalf of these users, Rep Nodes participate in the voting process and distribute rewards back to them.

When a transaction is submitted, the Escrow Node randomly selects five Rep Nodes (excluding the sender and receiver) to validate it. If 75% or more approve, the Escrow Node finalizes the block and releases tokens from escrow. This design enables both security and inclusiveness at scale.

2. Token Economy (XENE)

The native token of the Xenea blockchain is XENE, which underpins the network’s incentive model.

• Zero-cost transfers: XENE transfers are free of gas costs, while fungible token (FT) and non-fungible token (NFT) transactions incur near-zero fees.

• Block rewards: New blocks yield 300 XENE at genesis, with rewards halved every two years to ensure sustainable issuance.

• Distribution: Rewards are shared among Escrow Nodes, Rep Nodes (and their mobile participants), and DACS Nodes. This balanced allocation encourages wide participation across consensus, validation, and storage functions.

• Collateral & utility: DACS operators must stake XENE to operate, and XENE also serves as a basis for governance and ecosystem incentives.

3. Decentralized Autonomous Content Storage (DACS)

To ensure persistence of on-chain content, Xenea integrates DACS (Decentralized Autonomous Content Storage). Initially built on IPFS, DACS expands to support both static and dynamic data, enabling reliable NFT storage as well as future real-time applications.

Features include:

• Sustainable Generation Manager (SGM): Periodically replicates data to new nodes, guaranteeing long-term durability even as hardware ages.

• Dynamic data support: Unlike conventional NFT storage limited to immutable files, DACS incorporates write-buffer mechanisms (e.g., W-Nodes) to manage dynamic content securely.

• FASTD caching: Provides low-latency access for time-sensitive applications.

Together, PoD, XENE, and DACS establish Xenea as a Layer 1 blockchain that is both sustainable and extensible. The following chapters will examine each of these components in depth.