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Design Q&A · Litepaper v1.0 review

30 questions, straight answers

What a reviewer asked after reading the litepaper, and where each item stands today.

Questions
30in order
Decided
11in the litepaper
Open decision
15with a recommendation
Needs counsel
4legal analysis

Each answer carries one status. Decided means it is established in the litepaper or on this site. Open decision means the team has not decided it yet; any "Recommended" note is a suggestion, not a commitment. Needs counsel lists what lawyers have to analyze; nothing here is a legal conclusion.

Status at a glance

  • Decided11

    XCORE's primary goal is a trading asset on Raydium (Q1). $1 = 1 wXNT + 45 XCORE, $10 minimum, no caps, 20M wXNT + 900M XCORE sale vaults that empty together, 100M XCORE + 2M wXNT locked Raydium liquidity (LP burned), Raydium only, 3% Token-2022 fee shared hourly in wXNT, 0.5% hourly buy bot.

  • Open decision15

    Source of the pool's 2M wXNT, LP fee-claim holder, exclusions beyond the pool, fee plumbing, operations, disclosures and pricing rules.

  • Needs counsel4

    Issuer, "fee share" wording, jurisdictions, US persons. Only the Cayman VASP Act review is referenced so far.

Decide before launch

  1. Q4Source of the pool's 2,000,000 wXNT
  2. Q5Who holds the LP fee-claim NFT
  3. Q9Exclusion list beyond the pool
  4. Q16Seller entity and where USDC goes
  5. Q17Source and cost basis of the 20M wXNT
  6. Q18/19Price-band / pause rule vs market wXNT
  7. Q24–27Issuer, "fee share" wording, jurisdictions, US persons
  8. Q29Volume model or de-emphasize $10M/day

Highlighted cards below. Everything else can follow, but should be written down.

01Purpose

  1. Q1. What is XCORE's objective: recurring wXNT demand, a holder reward, or a trading asset?

    Decided

    Decided: XCORE's primary objective is to be a trading asset on Raydium. The 3% fee share in wXNT and the hourly wXNT buy bot are supporting features, not the goal.

    EstablishedPrimary goal: a trading asset on Raydium (one XCORE / wXNT pool). Supporting features: the 3% fee share, paid hourly in wXNT, and the 0.5% hourly wXNT buy bot.

    See also Q25, Q28, Q30.

02Supply & distribution

  1. Q2. Who gets the XCORE that the sale does not distribute?

    Decided

    Resolved by the resize

    The fixed 1,000,000,000 XCORE supply is now fully allocated: 900,000,000 XCORE (90%) sits in the sale vault and goes to buyers at 45 per $1, and 100,000,000 XCORE (10%) is locked as Raydium liquidity (see Q4). There is no treasury, team or reserve allocation. At sell-out, $20,000,000 is raised and 20,000,000 wXNT + 900,000,000 XCORE are distributed; both sale vaults end at 0.

    Established900,000,000 XCORE sale vault + 100,000,000 XCORE locked liquidity = 1,000,000,000. Nothing else.

    See also Q3, Q4, Q21.

  2. Q3. Is 45 XCORE per $1 permanent?

    Decided

    For this sale, yes: every $1 gets 1 wXNT + 45 XCORE (the vault sends exactly 45; 43.65 lands after XCORE's 3% transfer fee), from the $10 minimum up, with no caps or tiers. The ratio is what makes the 20,000,000 wXNT and 900,000,000 XCORE vaults empty at the same moment. Because 100% of the non-liquidity supply is in this sale, there is no XCORE left for a future round at any rate.

    Established45 XCORE per $1 (gross) is fixed for this sale: $10 → 10 wXNT + 450 XCORE, 436.5 lands after the 3% fee.

03Liquidity

  1. Q4. Who seeds the initial XCORE/wXNT liquidity, how much, and at what starting price?

    Decided

    Decided: one Raydium XCORE/wXNT pool seeded with 100,000,000 XCORE (10% of supply) and 2,000,000 wXNT. That opens at 0.02 wXNT per XCORE, about $0.02 with wXNT at $1, in line with the sale (45 XCORE per $1, about $0.022 each). The LP is burned (Q5). The pool address is excluded from the fee share (Q9).

    Established100,000,000 XCORE + 2,000,000 wXNT on Raydium, about $0.02 per XCORE at launch.

    Still open Where the pool's 2,000,000 wXNT comes from is not decided. The 20,000,000 wXNT sale vault stays at 20,000,000 and is not reduced for it.

    Recommended (not decided)Name the source of the 2,000,000 wXNT (for example treasury or an open-market purchase) and its cost before the pool opens, and keep it separate from the 20,000,000 wXNT sale vault so the 45-per-$1 sizing still empties both vaults together.

  2. Q5. Who owns the LP tokens for the pool?

    Decided

    Decided: nobody. The LP is locked permanently through Raydium's LP-burn feature: the LP tokens are burned, so no one can withdraw the pool's liquidity. Raydium's LP-burn feature keeps the right to claim the pool's trading fees, held as a separate fee-claim position.

    EstablishedLP burned through Raydium's LP-burn feature; liquidity can't be withdrawn; the LP fee claim is retained.

    Still open Who holds the fee-claim NFT, and where the claimed LP fees go, is not decided.

    Recommended (not decided)Hold the fee-claim NFT in a disclosed multisig, publish the burn transaction and the NFT holder address, and state what the claimed LP fees are used for.

04Fee mechanics

  1. Q6. How are fees harvested, swapped to wXNT and distributed?

    Open decision

    Partly decided. XCORE is a Token-2022 token with a 3% transfer fee; fees are converted to wXNT and distributed to holders pro-rata every hour. The concrete harvest-and-swap path is open.

    How Token-2022 transfer fees work in general: on each transfer the fee is withheld in XCORE inside the recipient's token account. Anyone can "harvest" those withheld amounts into the mint, and only the mint's withdraw-withheld authority can then move them to a chosen account. A separate fee-config authority can change the rate. Converting the collected XCORE into wXNT is a swap on the pool.

    Decided partToken-2022 transfer fee of 3%; fees converted to wXNT; distributed pro-rata, hourly.

    Recommended (not decided)Decide and publish who holds the withdraw-withheld and fee-config authorities (ideally a disclosed multisig), the harvest cadence, the swap route and the slippage limits.

    See also Q7, Q13.

  2. Q7. Doesn't converting fees into wXNT create circular sell pressure on XCORE?

    Open decision

    Yes, in part. Fees are collected in XCORE and swapped to wXNT, so every conversion sells XCORE into the XCORE/wXNT pool. The size of that effect relative to volume and pool depth has not been modeled. The starting depth is now fixed (100,000,000 XCORE / 2,000,000 wXNT, locked), which gives the model a baseline.

    Recommended (not decided)Run a stress model before launch: conversion size vs pool depth, price impact per hour, and low-volume and high-volume scenarios.

  3. Q8. Do holders claim, or is distribution automatic?

    Open decision

    The litepaper says distribution is hourly and pro-rata, but whether that means pushing wXNT to every wallet or letting holders pull it is not decided. Pushing to every holder gets more expensive as the holder count grows.

    Recommended (not decided)Accrue each holder's share on-chain and let anyone trigger a claim (permissionless). It scales with holder count and keeps the hourly accounting.

  4. Q9. Are the pool, treasury and contract addresses excluded from the pro-rata share?

    Open decision

    Partly decided. The Raydium pool address is excluded, so the 100,000,000 XCORE locked in the pool never takes a share of the fee distribution. Whether the sale vault, the fee-claim NFT holder, program accounts or any other contract address are excluded is still open.

    Decided partThe Raydium XCORE/wXNT pool address is excluded from the 3% fee-share distribution.

    Recommended (not decided)Exclude every non-holder address (sale vault, program accounts, fee-claim holder) and publish the exclusion list with addresses and reasons so the pro-rata math can be checked.

  5. Q10. Why does moving XCORE between my own wallets pay 3%?

    Decided

    In the current design every XCORE transfer pays the 3% fee, including moves between your own wallets; the litepaper says so. Whether this stays permanent is open.

    Decided (current design)3% applies to all transfers, self-transfers included.

    Recommended (not decided)If an exemption is wanted, consider fee-exempt wallet linking. Note the complexity: Token-2022's transfer-fee extension has no built-in per-wallet exemption, so it would need extra program logic and an abuse-resistant way to prove wallet ownership.

  6. Q11. Why 3%? Were other rates tested?

    Open decision

    3% is the current setting, but it has not been tested against other rates. It applies on each leg, so a buy and a later sell each pay it before pool fees.

    Recommended (not decided)Model 1%, 2%, 3% and 5% for their effect on spreads, arbitrage and market-maker viability, then choose and publish the reasoning.

  7. Q12. Why hourly distribution?

    Decided

    Hourly is the decided cadence for now: it keeps the fee share visible and close to real time.

    EstablishedFees are distributed hourly.

    Recommended (not decided)If gas or operating cost per run starts to matter, move to accrual plus claim (see Q8).

05Operations

  1. Q13. Who runs the buy bot and the fee distribution, and who holds the keys?

    Open decision

    Not decided or disclosed. The current description implies an operator-run, off-chain bot.

    Recommended (not decided)Disclose the operator, the bot wallet addresses and how keys are held, then move distribution on-chain over time.

  2. Q14. What happens if the bot fails for 12 hours?

    Open decision

    There is no defined failure procedure yet.

    Recommended (not decided)Let fees and buy-bot USDC accumulate, then catch up gradually (a TWAP over several hours) rather than in one large trade. Publish a public status log of every run and every outage.

  3. Q15. Why a market buy instead of adding the 0.5% to liquidity?

    Decided

    Decided: the 0.5% funds an hourly wXNT market buy on Raydium, optimizing for steady buy pressure. Adding it to liquidity instead would deepen the pool and reduce slippage but create no direct buy pressure. That is the trade-off.

    Established0.5% of each purchase (out of the amount paid) funds an hourly wXNT market buy on Raydium.

06Sale economics

  1. Q16. Where does the 99.5% of USDC go, and who is the seller?

    Open decision

    Established: 99.5% of sale USDC buys existing wXNT inventory and never pays XCORE rewards. Who the selling party is, and where the USDC settles, is not disclosed.

    Recommended (not decided)Name the seller entity, its relationship to the team, and the receiving address.

  2. Q17. Where do the 20M wXNT come from, and what is their cost basis?

    Open decision

    Not disclosed. The litepaper says the vault holds 20,000,000 existing wXNT but not their source or what they cost. Separately, the source of the 2,000,000 wXNT paired in the Raydium pool is not decided either (see Q4).

    Recommended (not decided)Disclose the source of the inventory and its cost basis, so buyers can see the margin between that and the $1 sale price.

  3. Q18. If wXNT trades below $1 on the market, is that premium intended?

    Open decision

    Not explicitly decided. If market wXNT is below $1, a buyer pays more than market for the wXNT, so in effect they are paying a premium for the XCORE.

    Recommended (not decided)Adopt a pause rule or price band: pause, or disclose prominently, when market wXNT falls a set percentage below $1.

  4. Q19. What happens if wXNT trades at $2?

    Open decision

    Not decided. Buyers could take wXNT from the vault at $1 and sell it on the market at $2. With no caps, arbitrage could drain the vault quickly.

    Recommended (not decided)Add a reference-price pause, or switch to a dynamic price tied to the market, when market wXNT is meaningfully above $1.

  5. Q20. Is "$1" a valuation of wXNT or a fixed inventory price?

    Decided

    Decided intent: $1 is a fixed sale price for existing inventory, not a valuation of wXNT. The current tagline ("X1's utility token at $1") can read like a valuation.

    Decided (intent)$1 USDC per wXNT is a fixed inventory sale price.

    Recommended (not decided)Reword the tagline, e.g. "wXNT at a fixed $1 sale price". The litepaper text is unchanged on this page; this is a note for its next revision.

  6. Q21. What happens after the vault sells out?

    Decided

    It follows from the mechanics: the 20,000,000 wXNT and 900,000,000 XCORE vaults empty at the same moment ($20,000,000 raised), so sale distribution of XCORE stops, and so does new buy-bot funding (it comes from purchases). After that, wXNT and XCORE are driven by the secondary market, and the fee share continues only as long as XCORE trades. The 100,000,000 XCORE in the pool stays locked. With the full supply allocated, there is no XCORE for a future sale round (see Q3).

    EstablishedNo more sale XCORE once the vaults empty.

07Market structure

  1. Q22. "Raydium only": is that enforced?

    Decided

    Decided: Raydium is the only venue the project seeds. It is not technically enforced. Anyone can create another XCORE pool on any DEX that supports Token-2022. The 3% transfer fee applies to XCORE transfers wherever they happen.

    EstablishedRaydium is the only seeded venue.

  2. Q23. Should XCORE be a freely transferable token or a non-transferable entitlement?

    Open decision

    Not decided. The current design is a freely transferable Token-2022 token. The alternatives:

    • Freely transferable (current): tradable, and transfers create the fees, but it looks more like an investment asset.
    • Non-transferable entitlement (Token-2022 supports non-transferable tokens): no secondary market, but also no transfer volume, so no fees to share.
    • Transferable with restrictions (lockups, allow-lists): a middle ground with more operating complexity.

    Any choice here also feeds the legal analysis (Q25).

09Incentives

  1. Q28. What holder behavior is the design meant to encourage?

    Open decision

    Not decided. There is a tension: holding XCORE is rewarded, but the fees that fund the reward come from other people trading and transferring. If everyone holds, there is no volume.

    Note after Q1 Q1 now sets XCORE's primary goal as a trading asset, which points toward active trading and price discovery rather than passive holding. Which holder behavior to encourage is still open.

    See also Q1, Q30.

  2. Q29. Who generates the $10M/day, and what volumes are plausible at different market caps?

    Open decision

    No volume model exists. The $10M/day × 3% = $300k/day figure is arithmetic for illustration, not a forecast, and we will not publish volume estimates per market cap without a basis.

    Recommended (not decided)Build a comparables set (turnover of similar Token-2022 fee tokens and similar-size pools) before quoting any volume. A round $10M/day can anchor expectations, so consider de-emphasizing it until that model exists.

  3. Q30. Is the value proposition XCORE price appreciation or the wXNT fee stream?

    Open decision

    Not decided. The materials now lead with XCORE as a tradable token on Raydium, present the wXNT fee stream as a supporting feature, and make no claims about XCORE's price. There is no formal position.

    Note after Q1 Q1 now points toward active trading and price discovery on Raydium. That is a statement of purpose, not a price prediction; this question stays open.

    See also Q1, Q25.