Xahau Network published a whitepaper when it was published. It is currently available at: https://github.com/Xahau/Whitepaper/blob/main/Xahau-Whitepaper.pdf. It contains 18 pages and even some parts are outdated, the whitepaper was never updated. Even the whitepaper may seem a little complex, let’s break it down into small pieces for easy reading.
First Part: The Summary
The whitepaper defines Xahau as a smart contract sidechain of the XRPL ecosystem. It is a fork of the open source rippled (XRP Ledger) that includes useful and innovative new features. An XRPL core with differences. Hooks that will act as smart contracts. The native token XAH (formerly it was going to be called XRP+) and improved tokenomics. The possibility of burning XRP in the XRP Ledger to generate XAH in Xahau following specific rules, the process is known as “Burn2Mint”. A “Genesis” type account and hook to manage the issuance of XAH among other things and which is governed by the two levels of governance of the network.
The development of Xahau has been led by the Xahau Launch Alliance, five entities that have borne the risk and cost of creating the network without the need for an ICO.
Second Part: Built from the XRPL’s DNA
Xahaud is a fork of rippled, the open source codebase of the XRPL. To reach consensus, the XRP Ledger Consensus Protocol is used. It uses a UNL or Unique Node List, a list of other validators it tursts. It also has it own DEX. It has URIToken NFTs instead of XRLS-20 NFTs. URITokens provide a lightweight, flexible and cost-efficient solution for NFTs.
Third Part: Hooks
Hooks is the smart contract solution for Xahau. Small pieces of code defined on a Xahau account that execute logic. You don’t need a 2nd layer to run them. They are simple, efficient, cheap and scalable. Some example use cases include: Whitelists, Blacklists, sophisticated Escrow, Automated Registry and Self-Sovereign treasury.
Fourth Part: Native token & Tokenomics
Xahau native token is Xahau, Ticker: XAH. Its smallest unit is 1 drop or 0.000001 XAH. An initial liquidity of 600 million distributed to launch participants. 12 millions to each of the 8 Governance Game validato Seats. 16 million additional to Gatehub for DEX stablecoin liquidity bootstrapping. 160 additional million to XRPL Labs. 328 million to the XRPL Foundation to help ensure the health of the XRPL Protocol ecosystem.
Fifth Part: Burn2Mint Liquidity Solution
Xahau’s Burn2Mint (or B2M) allows a user with an account on the XRPL mainnet to clone that Account on Xahau and then burn XRP on the XRPL mainnet and get XAH in return in Xahau blockchain. The amount of XAH created depends on the Ratio Schedule available below:
Sixth Part: Xahau Governance Game
Xahau operates similarly to the XRP Ledger Consensus Protocol. Xahau validators rely on a robust overlap in validator UNLs to define the canonical order for transactions. Xahau needs a governance mechanism for its Genesis Hook in case the Hook needs to be adjusted or replaced: The Governance Game. The Governance Game also ensures that UNL validators remain active. There are two tables (L1 and L2) in the The Governance Game. L1 seats are suitable for significant entities, while L2 seats allow broader participation.
Seventh Part: The Xahau Launch Alliance
The Xahau Launch Alliance conssits of five independent entities: XRPL Labs (Xaman), GateHub Limited, Titanium OU, Evernode Labs Ltd, Digital Governing OU.
Eighth Part: Launch Fully Functional & Decentralised
Xahau launched with 8 of its 20 Governance Seats filled. 5 L1, 3 L2 and 1 to FYEO. There is no ICO and no funds were raised.