The Xai Foundation, which supports the Xai layer-3 gaming network built with Arbitrum scaling tech on Ethereum, has announced the launch of a new staking pool system designed to reward user involvement in the ecosystem.

The Xai staking pools allow XAI token holders in eligible regions to stake their tokens in a pool, thus earning rewards for their participation. The update introduces a new token, esXAI, which serves as an escrowed staking representation of the XAI token. Users can convert their XAI to esXAI and then stake the tokens to participate and earn staking rewards.

Staking pools can be created by Sentry Key owners—who had to complete know-your-customer (KYC) protocols—that operate nodes that support the network. Pool operators can then determine the distribution of pooled network rewards, specifying the percentages allocated to themselves, Sentry Key stakers, and esXAI stakers.

The higher the tier of a staking pool, based on the amount of esXAI staked, the greater the reward multiplier for the staked Sentry Keys. This, the Xai Foundation hopes, will encourage "collaboration and competition among pools to attract stakers and climb the reward tiers,” according to a release.

The Xai Foundation first launched staking rewards in February, with the pools and expanded functionality being added to the offering today.

"We are thrilled to introduce staking pools to the Xai community," added the pseudonymous Soby, a core contributor to Xai. "This upgrade represents our commitment to delivering the best value and rewards to our users while ensuring the long-term health and success of the Xai network.”

The Xai network launched its mainnet earlier this year alongside a XAI token airdrop for node operators and owners of certain Xai-associated NFT collections. Games are starting to launch on the network, such as the on-chain role-playing game Tarochi.

Additional projects are forthcoming, such as card-battler Final Form and multiplayer action game LAMOverse from Ex Populus, the Crypto Unicorns franchise migrating over from Ethereum scaling network Polygon, and potentially dozens of indie games that are being adapted for crypto gaming in partnership with The Media Indie Exchange (The MIX).

Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Andrew Hayward.