Experience Points Whitepaper

Sunday, June 17, 2018
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The Experience Based Economy; A Broader Approach Ab stra c t: Sinc e the e a rlie st d a ys o f b o a rd a nd d ig ita l g a ming , e xp e rie nc e p o ints (XP) ha ve b e e n the de fa c to c urre nc y o f in-g a me life . As a c ha ra c te r g o e s thro ug h the ir na rro w wo rld , the y g a in XP whic h c a n b e use d to “ le ve l up ” a nd imp ro ve sta tistic s o r func tio n. XP, the d e c e ntra lize d c ryp to c urre nc y, a ims to intro d uc e this func tio n into life in a wa y tha t ma ke s it b o th simp le a nd intuitive to b uild XP re wa rd s into d a ily living . Whe the r it is thro ug h the me c ha nism o f XP b e ing g ive n a s a re wa rd fo r g a me p la y, a s it wo uld b e use d in a mo re c o nve ntio na l se nse , o r XP b e ing g ive n a s a c o mp o ne nt o f the g a mific a tio n o f re a lity, the p ra c tic e o f a wa rd ing XP fo r use in the re a l wo rld p re se nts a ta ng ib le so lutio n to so me o f the p ro b le ms e nd e mic to to d a y’ s so me wha t a b stra c t a nd d isc o nne c te d re a lity. Thro ug h b uild ing this b rid g e b e twe e n a use r’ s e ve ryd a y life a nd the b lo c kc ha in-b a se d wo rld o f XP, a ne w a nd b rig hte r future b le nd ing c ryp to c urre nc y a nd life c a n b e b uilt. White pa pe r Ve rsio n: The mo st c urre nt ve rsio n o f this d o c um e nt is a c c e ssib le o n the we b a t: http s:/ / xp c o in.io / white p a p e r.p d f The ve rsio n a va ila b le a t tha t URL re p re se nts the o nly va lid ve rsio n o f o ur white p a p e r. XP Ec o syste m White p a p e r v3.01

No te fo r Expe rie nc e d C rypto c urre nc y Enthusia sts As this p a p e r is de sig ne d to no t o nly intro duc e p e o p le to XP, b ut a lso to c ryp to c urre nc y in g e ne ra l, so me e xp e rie nc e d re a de rs ma y find c e rta in se g me nts to b e slo w-g o ing , b o ring , o r o ve rly simp lifie d. Be c a use o f the funda me nta lly wo rld-c ha ng ing p o te ntia l e xhib ite d b y the XP e c o syste m, it is imp o rta nt tha t no n-c ryp to p e o p le c a n re a d a nd unde rsta nd wha t is p ro p o se d b y the XP De ve lo p me nt Te a m. Ma ny o f the ide a s p re se nte d in this intro duc to ry white p a p e r will b e furthe r fle she d o ut in te c hnic a l ye llo w p a p e rs a t a la te r da te . As this p a p e r wa s de sig ne d fo r no n-c ryp to p e o p le a s we ll a s c ryp to c urre nc y e nthusia sts, if y o u wo uld like to skip so me o f the b asic info rmatio n and g e t straig ht to the g ro undb re aking pro po sals, ple ase skip dire c tly to Se c tio n V . Ma nda to ry Le g a l Disc la im e r The info rma tio n p ro vide d in this white p a p e r a nd a c c o mp a nying ma te ria l is fo r info rma tio na l p urp o se s o nly. It sho uld no t b e c o nside re d le g a l o r fina nc ia l a dvic e . Yo u sho uld c o nsult with a n a tto rne y o r o the r p ro fe ssio na l to de te rmine wha t ma y b e b e st fo r yo ur individua l ne e ds. XP a nd the XP Te a m do e s no t ma ke a ny g ua ra nte e o r o the r p ro mise a s to a ny re sults tha t ma y b e o b ta ine d fro m using o ur c urre nc y o r c o nte nt. No o ne sho uld ma ke a ny inve stme nt de c isio n witho ut first c o nsulting his o r he r o wn fina nc ia l a dviso r a nd c o nduc ting his o r he r o wn re se a rc h a nd due dilig e nc e . To the ma ximum e xte nt p e rmitte d b y la w, XP disc la ims a ny a nd a ll lia b ility in the e ve nt a ny info rma tio n, c o mme nta ry, a na lysis, o p inio ns, a dvic e a nd/o r re c o mme nda tio ns p ro ve to b e ina c c ura te , inc o mp le te o r unre lia b le , o r re sult in a ny inve stme nt o r o the r lo sse s. C o nte nt c o nta ine d o n o r ma de a va ila b le thro ug h the XPc o in.io we b site o r a ffilia te d we b site s o r so c ia l me dia c ha nne ls is no t inte nde d to a nd do e s no t c o nstitute le g a l a dvic e o r inve stme nt a dvic e a nd no a tto rne y-c lie nt re la tio nship is fo rme d. Yo ur use o f the info rma tio n o n the we b site o r ma te ria ls linke d fro m the We b is a t yo ur o wn risk. 2|Pa g e

I. Why XP? The true va lue o f a life isn’ t me a sure d in mo ne y o r in a g e o r in thing s – life is me a sure d in e xp e rie nc e . A life we ll live d is fille d with infinite g ra ins o f e xp e rie nc e tha t se t it a p a rt fro m e ve ry o the r. Living to the rip e o ld a g e o f 100 ye a rs in a b ub b le is no life a t a ll, b ut g o ing o ut in a b la ze o f g lo ry in yo ur mid - 20s while d o ing so me thing a ma zing c a n b e c o nsid e re d a “ life we ll live d .” While no t a d vo c a ting the mid -20s b la ze o f g lo ry p a th, the re is so me thing to b e sa id fo r e xp e rie nc e . Life is me a nt to b e live d – fully. Eve rything we d o in life g ive s us e xp e rie nc e . Ea c h trip we ta ke , e a c h c o nc e rt we a tte nd , a nd e a c h ne w frie nd we me e t, c o ntrib ute s to the e te rna l d istrib ute d le d g e r o f o ur live s. Why no t use this e xp e rie nc e ? Why no t find a wa y to a c c o unt fo r it a nd to ma ke it wo rk fo r us a s we g o thro ug h life ? Why no t me e t with o the rs, who a lso ha ve e xp e rie nc e , a nd sha re a no the r uniq ue e xp e rie nc e to g e the r. This sharing e c o no my o f e xpe rie nc e is what XP was c re ate d to fac ilitate . The c e ntra l re q uire me nt o f XP is tha t it is fo r e ve ryo ne . Unlike o the r c ryp to c urre nc ie s tha t ha ve a sp e c ific a nd ve ry na rro w usa g e , XP is d e sig ne d to b e use d b y a nyo ne , a nywhe re . With a me c ha nism tha t c a n p ro vid e a d e g re e o f d istrib utio n imp o ssib le with o the r c ryp to c urre nc ie s, XP c a n e nha nc e yo ur life a nd b ring yo u c lo se r to the e xp e rie nc e -d rive n c o mmunity. Unlike o the r c ryp to c urre nc ie s whic h must b e p urc ha se d o r mine d , XP c a n b e ma d e a va ila b le to yo u a s yo u b uild e xp e rie nc e . XP is o ne o f life ’ s tiny re wa rd s tha t yo u g e t fo r a jo b we ll d o ne o r a ne w e xp e rie nc e tuc ke d a wa y. XP o p e ns the p o te ntia l fo r a n e ntire e c o no my b a se d o n wha t yo u ha ve d o ne , whe re yo u ha ve g o ne , a nd the c o mmunitie s with whic h yo u e ng a g e . Be fo re we b e g in, it is imp o rta nt fo r p o te ntia l use rs to und e rsta nd the use c a se o f XP. With mo st c ryp to c urre nc ie s, the use c a se is hyp o the tic a l. O fte n, this use c a se itse lf is in d e ve lo p me nt a nd it MAY b e a va ila b le fo r use a t so me p o int in time in the future . With XP, the use c a se a lre a d y e xists, b e c a use p e o p le a re o ut the re in the wo rld b uild ing e xp e rie nc e e ve ry sing le d a y. The te rm XP wa s first use d b y G yg a x, Ka ye , a nd Blume , the o rig ina l c re a to rs o f Dung e o ns a nd Dra g o ns.1 Sinc e tha t time ha s b e c o me ub iq uito us in ma ny d iffe re nt a re a s o f life . The tre nd to wa rd s g a mific a tio n ha s a llo we d the c o nc e p t o f “ e xp e rie nc e p o ints,” o nc e re se rve d fo r g a me s, to sp re a d into ta sks fro m d o ing yo ur la und ry to wa lking yo ur d o g . XP se e ks to c a p ita lize o n this b y p ro vid ing a n inc e ntiviza tio n struc ture to p e rmit the fre e flo w o f to ke ns fro m g e ne ra tio n p o ints to use rs a nd b a c k to sp e nd ing p a rtne rs. 1 First m e ntio ne d in the First Ed itio n o f the Dung e o ns a nd Dra g o ns Ba sic Se t in 1977. 3|Pa g e

II. Unde rsta nding Ma rke t Sizing The re is a la rg e c o nting e nt o f the c ryp to c urre nc y inve stme nt c o mmunity whic h a sso c ia te s the p ric e o f a c ryp to c urre nc y with its sup p ly. Ho we ve r, this lo g ic is so me wha t fa ulty, a s it isn’ t ne c e ssa rily the sup p ly o f a to ke n whic h d e te rmine s its p ric e , b ut ra the r d e ma nd a nd usa g e . We a re d e d ic a te d to b uild ing tha t d e ma nd a nd c re a ting tha t usa g e . And no w fo r so me b rie f no te s a b o ut ma rke t sizing : In G a m ing :  In 2016, g a ming re p re se nte d a to ta l ma rke t va lua tio n o f US$99.6 b illio n, with a n 8.5% g ro wth ra te o ve r 20152  58% o f a ll g ro wth in g a ming in 2016 o c c urre d in the Asia -Pa c ific Re g io n In To urism :  In Euro p e , to urs a nd a c tivitie s a c c o unt fo r a ro und US$40 b illio n a nnua lly3  Tra ve le rs a re like ly to sp e nd mo re o n sig htse e ing a nd b uild ing e xp e rie nc e tha n o n sho p p ing , so uve nirs a nd nig htlife c o mb ine d 4 In Ente rta inm e nt:  To ta l b o x o ffic e re c e ip ts fo r mo vie s g lo b a lly wa s $38.3 b illio n in 2015, up 5% o ve r 2014’ s to ta l5  In 2016, the re wa s o ve r 60.4% g ro wth in stre a ming re ve nue fo r the music ind ustry6 In So c ia l Me dia :  The re a re o ve r 800 millio n a c tive Insta g ra m use rs g lo b a lly, with o ve r 500 millio n d a ily use rs7  In the ye a r o f 2015, 6,917,000 visito rs sto p p e d in a t the Eiffe l To we r in Pa ris8 The re ha s b e e n no sing le m e a ns o f inc e ntivizing a c tio n a c ro ss a nd b e twe e n e a c h o f the se diffe re nt e c o syste m s – until XP In XP’s C urre nt Ec o syste m :  The re a re 232 kno wn p e e rs a s o f De c e mb e r 22nd , 20179 The dra m a tic use c a se fo r XP is c le a r 2 Ne wzo o G a m e s – 2016 G lo b a l G a me s Ma rke t Re p o rt, 2017 3 Ste p he n Jo yc e – We b InTra ve l.c o m, 2016 4 Trip a d viso r – Trip b a ro me te r, 2015 5 MPAA – 2015 The a tric a l Ma rke ts Sta tistic s, 2016 6 IFPI – G lo b a l Music Re p o rt, 2017 7 Insta g ra m – Stre ng the ning O ur C o mmitme nt to Sa fe ty a nd Kind ne ss fo r 800 Millio n, 2017 8 So c ié té d 'Exp lo ita tio n d e la to ur Eiffe l 2015, 2016 9 C ryp to ID Blo c k Exp lo re r, 2017 4|Pa g e

III. Wha t is XP? XP, o r e Xp e rie nc e Po ints, is a Pro o f-o f-Sta ke c ryp to c urre nc y. Sinc e XP is d e sig ne d to b e use d b y a muc h b ro a d e r a ud ie nc e , it wo uld d o we ll to sp e nd so me time e xp la ining e xa c tly wha t this me a ns. While muc h d e e p e r e xp la na tio ns c a n b e fo und in ma ny d iffe re nt lo c a tio ns o nline , a b rie f hyp e r- c o nd e nse d e xp la na tio n o f e xa c tly wha t a c ryp to c urre nc y is a nd ho w it is g e ne ra te d fo llo ws. The first c ryp to c urre nc y, Bitc o in, wa s d e ve lo p e d b y a p e rso n, o r p e rso ns, kno wn a s Sa to shi Na ka mo to . This c ryp to c urre nc y, in a stro ke , re vo lutio nize d the fina nc ia l wo rld . O ne c ha ra c te ristic tha t ma ke s c ryp to c urre nc y so re vo lutio na ry is b e c a use it re mo ve s the re q uire me nt fo r fa ith in a fina nc ia l syste m . If yo u ha ve a d o lla r in yo ur wa lle t, yo u kno w tha t d o lla r will b uy yo u a se t a mo unt o f b re a d o r wa te r. Yo u kno w this b e c a use tha t d o lla r is b a c ke d b y the Fe d e ra l Re se rve Ba nk o f the Unite d Sta te s, whic h is, in turn, b a c ke d b y the Unite d Sta te s G o ve rnme nt a nd e ve rything tha t e nta ils. Ho we ve r, histo ry ha s ta ug ht us a g a in a nd a g a in tha t b a nks fa il, g o ve rnme nts c o lla p se , lo c a lize d c o mp ute r syste ms fa il, a nd o p e ra to r e rro r c a n wip e o ut the fina nc ia l re c o rd s o f millio ns. With d e c e ntra lize d c urre nc ie s, this isn’ t p o ssib le . With c ryp to c urre nc y, yo u d o n’ t ne e d to trust a ny sing le p e rso n o r o rg a niza tio n, inste a d yo u c a n kno w, with ma the ma tic a l c e rta inty, tha t yo ur d e p o sits a re se c ure d a nd p ro te c te d b y the e ntire d istrib ute d ne two rk. Pro o f-o f-Wo rk (Po W) c urre nc ie s re ly o n c o m p ute rs to p e rfo rm c o mp le x c a lc ula tio n to se c ure the ne two rk. While this se e me d like a g o o d id e a a t the a d ve nt o f c ryp to c urre nc ie s, a s d iffic ulty inc re a se s it is b e c o ming c le a r tha t it is e nviro nme nta lly irre sp o nsib le a nd who lly unne c e ssa ry to re ly o n the se so rts o f a rb itra ry c a lc ula tio ns to g e ne ra te ne w to ke ns o r to se c ure the ne two rk. As a re p la c e me nt fo r Po W, XP use s a syste m kno wn a s Pro o f-o f-Sta ke (Po S) to d e fe nd the ne two rk. This a lso ma ke s the g e ne ra tio n o f to ke ns p o ssib le b y a nyo ne who ma inta ins a c o in b a la nc e a nd ke e p s the ir c o mp ute r o n; it d o e s no t re q uire a p o we rful c o mp ute r o r e xp e nsive G PUs to “ mine ” c o ins. Fro m a ne two rk se c urity p e rsp e c tive , this ma ke s a d iffe re nc e a s we ll. As c o mp uting p o we r a d va nc e s a nd q ua ntum c o mp ute rs b e g in to e d g e the ir wa y o ut o f the o ry a nd into a c tua l usa g e , Po W c urre nc ie s a re g o ing to b e c o me m uc h le ss re lia b le a s the se c urity o f the ne two rk d e p e nd s o n no sing le a c to r b e ing a b le to c o ntro l a ma jo rity o f the p ro c e ssing p o we r b e ing use d . In the e ve nt tha t o ne sta te a c to r ma ke s a n a d va nc e in q ua ntum p ro c e ssing , it wo uld b e p o ssib le fo r this sta te a c to r to a tta c k the ve ry c o re o f Po W c urre nc ie s. O n the o the r ha nd , in o rd e r to d e sta b ilize the ne two rk with a Po S c urre nc y, it is ne c e ssa ry fo r the ho stile a c to r to c o ntro l o ve r 50% o f the a va ila b le c o in sup p ly. This is muc h le ss like ly tha n so me o ne a tte mp ting to suc c e ssfully d e sta b ilize a Po W ne two rk. 5|Pa g e

IV. The Ec o no m ic s o f Dig ita l To ke n- Ba se d Syste m Due to the fa c t tha t it is o ur lo ng -te rm g o a l to p ush XP o ut into the wo rld a nd b e yo nd the c ryp to c urre nc y c o mmunity, it is imp o rta nt tha t we a d d re ss so me o f the fund a me nta l c o nc e rns p re se nte d b y the uninitia te d . This se g me nt wa s b o rne o ut o f a d isc ussio n with se ve ra l b a nke rs who ra ise d se ve ra l p o ints a b o ut whic h the y we re c o nc e rne d . The Liq uidity Pro b le m : This issue , a s it ha s b e e n thus te rme d fo r Bitc o in, is e sse ntia lly the c ha lle ng e s fa c ing c o nve rsio n fro m Bitc o in to mo re e a sily usa b le fia t c urre nc y. This p ro b le m o f the e sse ntia l fung ib ility ha s b e e n d e a lt with, in la rg e p a rt, b y the g ro wth o f the ma rke t. If vie we d a s a n inve stme nt instrume nt, suc h a s a b o nd , the n the c o nve rsio n o f Bitc o in to c a sh p re se nts b a rrie rs no g re a te r tha n a c e rtific a te o f d e p o sit o r a ny o the r p a p e r-b a se d a sse t. Ho we ve r, if vie we d a s a sto re o f va lue a nd c urre nc y in its o wn rig ht, c ryp to c urre nc y d o e sn’ t ne e d to b e “ c o nve rte d ,” it simp ly ne e d s to b e use d . Aro und the wo rld , it is b e c o ming mo re a nd mo re p o ssib le to USE c ryp to c urre nc y witho ut b e ing c o nc e rne d a b o ut the fund a me nta l a b ility to insta ntly c o nve rt to fia t. In ma ny wa ys, c ryp to c urre nc ie s p re se nt a g re a t o p p o rtunity o f g lo b a l func tio na lity whic h na tio na l c urre nc ie s d o no t p o sse ss. Tha t sa id , if yo u must c o nve rt a c ryp to c urre nc y to c a sh, the re a re :  C ryp to c urre nc y e xc ha ng e s whic h c a n d ire c t d e p o sit fund s into yo ur b a nk a c c o unt b a se d o n c ryp to c urre nc y d e p o sits  C ryp to -b a se d b a nking institutio ns  Bitc o in ATMs o r o the r a uto ma te d b a nking se rvic e s a va ila b le to c ryp to c urre nc y use rs De c e ntra liza tio n a nd the La c k o f O ve rsig ht: This is a n issue o f sp e c ia l c o nc e rn to ma ny fina nc ia l e xp e rts. The re is a g re a t ne e d a mo ng st a d he re nts to the fina nc ia l institutio ns o f to d a y fo r so me so rt o f c e ntra liza tio n a nd c o ntro l. The fe a r is tha t witho ut c e ntra lize d c o ntro l a nd o ve rsig ht, the re c a n b e no so rt o f Ke yne sia n e c o no mic c o ntro ls e xe rte d o n the syste m. While this is te c hnic a lly true with mo st c ryp to c urre nc y syste ms, mo st c ryp to c urre nc y use rs wo uld c o nsid e r this ve ry muc h a fe a ture , a nd no t a b ug . Ha ving sta te -sp o nso re d o ve rsig ht g ua ra nte e s o nly tha t me d d ling will o c c ur. The syste m c a nno t b e se lf-c o rre c ting b e c a use ma rke t c o nd itio ns o fte n a c t in o p p o sitio n to a tte mp ts to c o ntro l the ma rke t c re a ting a ne g a tive o sc illa to ry c yc le . C ryp to c urre nc ie s DO la c k a c e ntra l c o ntro l syste m , b ut tha t a lso me a ns tha t the y c a nno t b e ma nip ula te d o utsid e o f the a p p lic a tio n o f ma rke t fo rc e s. This is a d o ub le -e d g e d swo rd b e c a use o n o ne ha nd it me a ns tha t the use rs the mse lve s re ta in c o ntro l o ve r the ir o wn re so urc e s. O n the o the r ha nd , it me a ns tha t ma rke t fo rc e s C AN b e use d to le a d to ma rke t mo ve me nts. This is no d iffe re nt tha n the mo re sta nd a rd fina nc ia l mo d e ls, b ut the sc a le o f ma ny c ryp to c urre nc ie s me a n tha t it is e a sie r to mo ve the va lue o f c ryp to c urre nc ie s tha n it is to mo ve the va lue o f, fo r e xa mp le , the d o lla r. It is e xp e c te d tha t a s usa g e inc re a se s a nd a to ke n suc h a s XP m o ve s fro m the ha nd s o f tho se who 6|Pa g e

sp e c ula te to the ha nd s o f tho se who a c tua lly use the to ke n, the se fluc tua tio ns will d e c re a se , a nd a ma rke t e q uilib rium will b e a c hie ve d b a se d o n g ro wth a nd usa g e . Bla c k Ma rke t Usa g e : It ha s o fte n b e e n sa id b y c ritic s tha t the o nly re a so n c ryp to c urre nc ie s e xist is to c o nd uc t b la c k ma rke t tra nsa c tio ns. While this is c e rta inly p o ssib le , c a sh a nd me ta ls will a lwa ys b e king fo r la rg e -sc a le illic it tra nsa c tio ns. The ve ry fa c t tha t tra nsa c tio ns e xists o n a b lo c kc ha in whic h is immuta b le a nd a p e rma ne nt re c o rd tha t mo ve me nt ha s ta ke n p la c e ma ke s b lo c kc ha in tra nsa c tio ns una ttra c tive fo r a nything ille g a l o n a la rg e sc a le . Blo c kc ha in fo re nsic s is a g ro wing a re a o f la w e nfo rc e m e nt inte re st, a nd the d a ys o f using c ryp to c urre nc ie s to mo ve la rg e a mo unts o f mo ne y c o mp le te ly und e te c te d a re c o ming to a n e nd . V. The Sta te o f XP To da y The XP c o mmunity ha s ra ise d se ve ra l c o nc e rns re g a rd ing XP’ s fund a me nta l te c hno lo g y a nd ma rke t d istrib utio n. The re is o fte n c o mme nts a b o ut re d uc ing to ta l sup p ly, re d uc ing sta ke ra te (the first sta g e o f whic h ha s b e e n d o ne with the De c e mb e r 25 th, 2017 Wa lle t Re le a se ), a nd la rg e wa lle ts he ld b y p re vio us te a m me mb e rs. While a g re a t d e a l c o uld b e sa id a b o ut the se issue s, it is b e st to simp ly p re se nt the so lutio n. All o f the se issue s c a n b e e ffe c tive ly ma na g e d thro ug h the intro d uc tio n o f the XP Pe nta no de Syste m . Ra the r tha n re lying o n simp le sta king fo r the se c urity o f the ne two rk, XP will re ly o n five d iffe re nt typ e s o f sp e c ia lize d no d e s to p ro vid e ne two rk se c urity a nd the ve rific a tio n o f tra nsa c tio ns. In a d d itio n to re c e iving va rio us a nnua l re turns, the no d e s will a lso se nd a p e rc e nta g e o f the ir sta ke re wa rd s b a c k to the XP Fo und a tio n to b e use d to g ro w the ne two rk o r to b e b urnt in a tra nsp a re nt a nd a ud ita b le fa shio n. NOTE: The XP Pe nta no de Syste m c urre ntly p ro p o se d ha s b e e n inp ut into the O ffic ia l 2018 XP Ro a dma p . Ho we ve r, a s de ve lo p me nt c o ntinue s, the se de ta ils ma y c ha ng e . XP Ma ste rno de s (C o st: 50m XP) The se a re sta nd a rd inve stme nt-g ra d e Ma ste rno d e s, p a ying o ut a t ro ug hly 50% a nnua lly. In o rd e r to g ua ra nte e up time , sta ke s will o c c ur e ve ry 60 minute s a fte r the no d e ha s b e e n a c tive . Annua l e a rning s a ssume a 24/ 7 up time , with b o nuse s b e ing d istrib ute d to no d e s fo r b e ing up a nd sta king fo r the lo ng e st p e rio d o f time . Fo r e a c h ho ur sta king , the se no d e s will re c e ive a p p ro xima te ly 2,800 XP. The no d e s will b e c o nfig ure d so tha t It d o e sn’ t ma tte r whe the r the no d e ho ld s 50m o r 500m , the p a yme nt will b e the sa me . This inc e ntivize s the c re a tio n o f ne w no d e s a nd d isinc e ntivize s ho a rd ing . 7|Pa g e

XP Supe rno de s (C o st: 1b XP) XP und e rsta nd s tha t p e o p le wo uld like to g a in hig he r re turns fo r the se rvic e o f se c uring the ne two rk a nd ke e p ing to ke ns o ut o f c irc ula tio n. In lig ht o f this, we will b e c re a ting the XP Sup e rno d e . This no d e will re q uire a muc h hig he r initia l d e p o sit, b ut will sta ke a t a muc h hig he r ra te . In e xc ha ng e fo r this hig he r sta king ra te , the re will b e a o ne -we e k d e la y b e fo re the no d e c a n b e b ro ke n. Furthe rmo re , the c re a tio n o f a sup e rno d e will re sult in a p e rma ne nt b urn o f the c o ins use d to e sta b lish the no d e . While it will still re c e ive ro ug hly 200% o f the initia l 1 b illio n XP d e p o sit a nnua lly, the first b illio n ha s b e e n d e stro ye d . This me a ns tha t a fte r the p urc ha se o f the Sup e rno d e , it will ta ke ro ug hly six mo nths to b e a b le to b re a k the no d e witho ut lo sing a p e rc e nta g e o f fund s. The se two inno va tio ns will p re ve nt the o p p o rtunistic d ump ing o f hig h to ke n vo lume s whe n p ric e ta rg e ts a re re a c he d . This fe a ture will e sse ntia lly limit Sup e rno d e s to tho se who b e lie ve in the p ro je c t a nd a re willing to sup p o rt it with the ir c o ntinua l se rvic e o f ne two rk se c urity. XP Sa le sno de s In o rd e r to g ro w the XP ne two rk, it is ne c e ssa ry to b ring me rc ha nts willing to b o th a c c e p t XP a nd p ro vid e XP to the ir c usto me rs. This is vita l to o nb o a rd ing ne w use rs a nd intro d uc ing the m to the XP e c o no my. This simp le e c o no mic re a lity ne c e ssita te s the c re a tio n o f the Re ta il Sa le sno d e . The va st ma jo rity o f p e o p le sp e nd ing mo ne y to d a y a re no t fa milia r with c ryp to c urre nc y in a ny me a ning ful se nse . C e rta inly, the y ha ve he a rd a b o ut va rio us c ryp to c urre nc y p ro je c ts, b ut c ryp to c urre nc y ha s a ma g ic a l unre a lity to it. In o rd e r to fa c ilita te the sp re a d o f the XP e c o no my, the XP Fo und a tio n will c re a te a nd d istrib ute XP Sa le sno d e s to re ta ile rs/ sho p o wne rs who wo uld like to e ithe r a c c e p t XP o r to use it fo r p ro mo tio na l p urp o se s. The Sa le sno d e will func tio n e xa c tly like a Ma ste rno d e with o ne c ritic a l d iffe re nc e – while a Ma ste rno d e c a n b e b ro ke n up a nd so ld a t its ho ld e r’ s whim o r tra nsfe rre d , a Sa le sno d e c a nno t b e b ro ke n up o r so ld . The sta ke re wa rd s fro m this no d e c a n b e use d p ro mo tio na lly, a s ra ins, o r in a ny wa y tha t the me rc ha nt c a n d e vise . Ho we ve r, it will o nly sta ke to 150% o f the initia l d e p o sit. This p re ve nts a d o rma nt o r lig htly use d Sa le sno d e fro m c o ntinuing to sta ke whe n no t b e ing use d . The Sa le sno d e itse lf a lso se rve s a s a p o int-o f-sa le inte g ra tio n syste m , a llo wing the ma in wa lle t to b e use d just a s a no rma l wa lle t fo r sa le s p urp o se s, ke e p ing the sta king p o rtio n o f the no d e se g re g a te d fro m the d a ily b a la nc e fo r usa g e . In the e ve nt tha t the me rc ha nt d e c id e s to no lo ng e r p a rtic ip a te in the XP ne two rk, the c o ins will b e func tio na lly b urnt a nd c a n b e re mo ve d fro m the to ta l sup p ly. In fa c t, the c re a tio n o f the sa le s no d e , fo r a ll 8|Pa g e

inte nts a nd p urp o se s, func tio ns a s a c o in b urn. This me a ns tha t fo r e ve ry sing le me rc ha nt p a rtne r tha t jo ins the XP ne two rk, the to ta l c o in sup p ly is re d uc e d b y a se t numb e r, while the se c urity o f the ne two rk is ma inta ine d . This will me a n tha t the re c a n b e a DIREC T c o rre la tio n b e twe e n me rc ha nt sig nup s a nd ma rke t p ric e . De vno de s Unlike the ir re la tive s, the Re ta il Sa le sno d e s, Ap p lic a tio n De vno d e s e xist to fa c ilita te o nline g ro wth o f the XP e c o no my. The se De vno d e s a re p ro vid e d , fre e o f c ha rg e , to d e ve lo p e rs. The y sta ke a t a ve ry hig h ra te , b ut o p e ra te o n a 10-d a y mo ving a ve ra g e c o inb urn. Esse ntia lly, if a d e ve lo p e r ha s a g a me tha t is ve ry p o p ula r, it is vita l to b e a b le to p ro vid e XP to b e ra ine d into the ir e c o syste m. Ho we ve r, to p re ve nt a c c umula tio n o r ma nip ula tio n, the se no d e s will b urn c o ins tha t ha ve no t b e e n use d a fte r te n d a ys. The se no d e s c a n o nly b e a c c e sse d thro ug h the to -b e -c re a te d XPla y API, a nd a re o the rwise ina c c e ssib le . Like the Re ta il Sa le sno d e s, the y func tio n a s a c o in b urn whe n c re a te d , a nd c a nno t b e b ro ke n a nd so ld . Like wise , the ir sta ke d c o ins c a nno t b e d ire c tly a c c e sse d , b ut o nly d istrib ute d using the XPla y API. G e o no de s O ne o f the c ritic a l d iffe re ntia ting fe a ture s tha t XP c a n o ffe r to the wo rld , is the a b ility fo r use rs to g a in XP simp ly b y visiting c e rta in lo c a tio ns. Using the a nd ro id -b a se d XP wa lle t, with p la nne d iPho ne inte g ra tio n in the future , use rs c a n a c tiva te lo c a tio n tra c king o n the ir wa lle ts, whic h will e na b le the m to re c e ive g e o lo c a tio n b a se d ra ins. This wo rks b y ma king it p o ssib le fo r a re ta il lo c a tio n, a mo nume nt o r a muse um to o ffe r e xp e rie nc e p o ints to the ir visito rs b y simp ly no tifying the m tha t e xp e rie nc e p o ints a re a va ila b le a nd o ffe ring a Q R c o d e fo r the m to d o wnlo a d the wa lle t. Ima g ine b e ing a b le to a tte nd a c o nc e rt – As yo u liste n to the music , yo ur p ho ne re c e ive s a ra in o f XP fro m a lo c a l p ro mo tio na l p a rtne r. Yo u a re the n a b le to turn a ro und a nd use this XP to b uy re fre shme nts fro m a n XP a ffilia te d re ta ile r. The p o ssib ilitie s a re e nd le ss with G e o no d e s a nd XP is the first c ryp to c urre nc y to o ffe r this fe a ture . The XP Fo unda tio n Mo the rno de : While no t a sta king no d e a nd while se rving a ve ry d iffe re nt p urp o se , the XP Mo the rno d e is the c e ntra l a nd a ud ita b le c le a ring ho use fo r the sta ke p e rc e nta g e s re turne d to The XP Fo und a tio n. The XP Mo the rno d e se rve s p rima rily fo r the c re a tio n o f the p re c e d ing no d e typ e s (with the e xc e p tio n o f Ma ste rno d e s a nd Sup e rno d e s). The XP Mo the rno d e is e ntire ly tra nsp a re nt a nd c a n b e a ud ite d b y a nyo ne . To fund this no d e , a p o rtio n o f a ll sta ke re wa rd s a re se nt b a c k to the XP Fo und a tio n Mo the rno d e to b e use d in e c o syste m g ro wth. 9|Pa g e

This no d e func tio ns o n a 30-d a y mo ving a ve ra g e a nd b urns a ll to ke ns whic h ha ve b e e n se nt it the y ha ve no t b e e n use d in 30 d a ys. This p re ve nts a c c umula tio n b y the d e ve lo p me nt te a m a nd a lto g e the r a vo id s the p ro b le m c re a te d b y p re vio us d e ve lo p e rs. The c o ntinuo us b urn will p re ve nt und ue sup p ly infla tio n, b ut will a lso a llo w fo r the c re a tio n o f Re ta il Sa le sno d e s a nd Ap p lic a tio n De vno d e s a s ne e d e d to o nb o a rd ne w re ta il lo c a tio ns a nd d e ve lo p e rs. VI. A Brig hte r Future with XP The c ritic a l ro a d b lo c k fo r a ll c ryp to c urre nc y units to d a y is a nswe ring the q ue stio n o f ho w to d rive a d o p tio n. C urre ntly, to b uy XP, a use r ha s se ve ra l a ve nue s, b ut mo st o f the m invo lve b uying so me c ryp to o f o ne so rt o r a no the r a nd mo ving it to a n e xc ha ng e to b uy so me XP. This is no t susta ina b le a nd lo c ks o ut the va st ma jo rity o f p o te ntia l use rs who a re unc o mfo rta b le with c ryp to c urre nc y in g e ne ra l, a nd a re a b je c tly te rrifie d o f e xc ha ng e s, with a ll o f the ir e la b o ra te b e lls, whistle s, c a nd le s, a nd unfa milia r te rmino lo g y. The so lutio n to this is to c re a te a n e c o syste m tha t is b a se d o n a re g ula r d istrib utio n o f to ke ns in a mo unts tha t inc e ntivize use r e ng a g e me nt while no t o ve r-infla ting the c urre nc y o r d isinc e ntivizing p urc ha se s o n e xc ha ng e s b y the inve sto r c la ss. The o ve ra ll id e a is to he lp p e o p le se e the utility o f XP, so tha t the y will g o o ut o n the ir o wn to a c q uire mo re – e ithe r b y sup p o rting XP a ffilia te s o r thro ug h p urc ha sing XP o n a n e xc ha ng e . This c a n b e d o ne in a va rie ty o f wa ys: The mo st re lia b le so urc e o f XP fo r the a ve ra g e use r sho uld a lwa ys b e the ho ld e rs o f the Sa le sno d e a nd De vno d e s. As a c urre nc y, we se rve mo re tha n o ne p urp o se ; in a d d itio n to se rving a s a me d ium o f e xc ha ng e , XP se rve s a s a n a b le ve hic le o f inc e ntiviza tio n fo r c usto m e rs, c lie nts, a nd visito rs e ve rywhe re . Sa le sno de s: While the re a re hund re d s o f use c a se s, c o nsid e r the se fe w e xa mp le s o f ho ld e rs o f Sa le sno d e s using the m to g ro w the ir b usine sse s. Me e t Blo o dyEwe – Blo o d yEwe o p e ra te s xp .ma rke t a nd use s it to se ll Ste a m c o d e s a nd o the r XP-re la te d me rc ha nd ise (re a lly! G o c he c k it o ut!). In a d d itio n to se lling the se c o d e s, he wo uld like to b e a b le to e sta b lish a re fe rra l syste m so tha t whe n so me o ne se nd s the ir frie nd s to b uy Ste a m c o d e s with XP, Blo o d yEwe c a n g ive so me XP b a c k to the re fe rre r. Me e t Ja n – Ja n is a tra ve l a g e nt who use s XP to inc e ntivize sp e c ific trip s. The Sa le sno d e e na b le s Ja n to func tio na lly g ive d isc o unts o n a trip while no t ne g a tive ly imp a c ting he r b o tto m line . Ja n re c e ntly g a ve 50m XP to Ba rc la y fo r the p urc ha se o f a trip to Tha ila nd , a nd a lso p ro vid e d 10 | P a g e

him with a list o f re ta il lo c a tio ns a nd p la c e s whe re XP c a n b e sp e nt. The XP wa s se nt to Ba rc la y’ s XP Mo b ile Wa lle t whe re he will b e a b le to sp e nd It a t p a rtic ip a ting re ta ile rs in Ba ng ko k. Me e t Hug o – Hug o is a c utting -e d g e c he f in Ne w Yo rk C ity. He b e lie ve s tha t a me a l a t his re sta ura nt sho uld b e a n e xp e rie nc e . In lig ht o f this, he wa s d e lig hte d to d isc o ve r tha t he c o uld se t up a re ta il sa le s no d e in his re sta ura nt. No w , a t the b o tto m o f e a c h o f his re c e ip ts, a p riva te ke y is p rinte d whic h a llo ws his c usto me rs to re d e e m XP. Whe n yo u e xp e rie nc e his fusio n ta ke o n c hic ke n C o rd o n Ble u yo u g e t 1000 XP a s a re mind e r o f yo ur visit. Me e t Hte t O o – Hte t O o o p e ra te s a n e le p ha nt to ur c o mp a ny lo c a te d in the jung le s o f Mya nma r. He is thrille d to run a re ta il sa le sno d e b e c a use it g ive s him the o p p o rtunity to a ttra c t inte rna tio na l c usto me rs who a re inte re ste d in to uring the wo rld a nd using XP. Fo r e a c h o f his e le p ha nt rid e s, fo r whic h he re c e ive s XP, a mo re sta b le a lte rna tive to the Burme se Kya t, he o ffe rs XP in e xc ha ng e fo r so c ia l me d ia p o sts o n his c usto me rs Fa c e b o o k, Twitte r, a nd Insta g ra m a c c o unts. He o p e ra te s b o th a re ta il sa le s no d e , a nd his o wn p e rso na l ma ste r no d e . He a lso use s his mo b ile wa lle t to p a y g uid e s a nd se rvic e p ro vid e rs a lo ng his to ur ro ute s. De vno de s: As o ur d ig ita l live s g ro w, the re is muc h we will b e a b le to d o in te rms o f d ig ita l c o nte nt d e live ry a nd d ig ita l life inte g ra tio n. While the fo llo wing c a se s c o uld a p p ly rig ht no w, mo re a nd mo re use c a se s sp ring into e xiste nc e d a ily. Me e t The PinkC rypto – The PinkC ryp to o p e ra te s a c ha tro o m a nd wa nts to use XP a s a n in-c ha t tip p ing c urre nc y. To fa c ilita te this, the XP fo und a tio n p ro vid e s he r with a n a p p lic a tio n De vno d e , whic h p ro vid e s so me d e g re e o f liq uid ity fo r ra ins, the re b y inc e ntivizing c ha nne l p a rtic ip a tio n, b ut a lso a c ts a s a n a d d itio na l se c urity no d e o n the ne two rk. Me e t Lo o pyle w113 – Lo o p yle w is the d e ve lo p e r o f Fo re st Sie g e , a n ind ie g a me a va ila b le o n itc h.io . He use s a n a p p lic a tio n De vno d e in fo re st sie g e b e c a use it a llo ws him to ra in XP o n p la ye rs fo r p e rfo rming sp e c ific ta sks within the g a me . This c o nne c ts d ire c tly to a n in-g a me wa lle t, whic h will e na b le p la ye rs to sto re XP to p urc ha se in-g a me ite ms, o r se nd the XP to the ir o wn c o re wa lle t. As time g o e s o n he inte nd s o n b uild ing a n e ntire ly e nc lo se d ma rke tp la c e b a se d o n XP within the fo re st sie g e g a me . Me e t Ya ne li - Ya ne li is a n a p p d e ve lo p e r who fo c use s o n the c re a tio n o f he a lth-b a se d a p p lic a tio ns. In e xc ha ng e fo r using he r me a l p la nning a p p lic a tio n, use rs a re a wa rd e d XP fo r e a c h ite m the y e nte r into the ir d a ily me a l p la n. This XP inc e ntivize s p e o p le to use he r a p p lic a tio ns, 11 | P a g e

ma king the m mo re a ttra c tive in a n o p e n ma rke t. Ho we ve r, it a lso ma ke s he r a p p lic a tio ns muc h mo re e ffe c tive b e c a use o f the e ffe c t tha t the p o sitive e nfo rc e me nt fro m g a mific a tio n o ffe rs. Me e t Fo n – Fo n is a d e ve lo p e r fo r a n o nline e d uc a tio n b a se d we b site , a t whic h stud e nts c a n sig n up fo r c la sse s, wa tc h vid e o s, a nd p a rtic ip a te in o nline fo rum d isc ussio ns. By ma inta ining a n a p p lic a tio n De vno d e , Fo n c a n p ro vid e e xp e rie nc e p o ints to he r e nd -use rs. If yo u sig n up to ta ke he r c la ss o n b lo c kc ha in te c hno lo g y, yo u will re c e ive 5 millio n XP o n c o mp le tio n. G e o no de s: The first g e o g ra p hic a lly-b a se d c ryp to c urre nc y re wa rd syste m g ive s the a ve ra g e use r a wa y to e a rn XP witho ut ha ving to sp e nd a nything a t a ll to p urc ha se XP, b ut still c o ntrib ute s to the e c o syste m b y p a tro nizing lo c a l la nd ma rks suc h a s tho se b e lo w. Me e t Jo hn Ha rva rd - The fa mo us sta tue o f Jo hn Ha rva rd sits in the q ua d a t Ha rva rd C o lle g e . As a so rt o f me c c a fo r tho se se e king Ivy Le a g ue a c c e p ta nc e s, the fig ure o f Jo hn Ha rva rd is a fre q ue nt lo c a tio n visite d b y hund re d s o f tho usa nd s o f p e o p le e ve ry ye a r. With a n XP G e o no d e , a n e d uc a tio na l c o nsulta nc y c a n ra in XP o n visito rs to the sta tue o f Jo hn Ha rva rd . The se visito rs, c a n in turn use XP a t va rio us lo c a tio ns thro ug ho ut Bo sto n a nd a ro und the wo rld . Me e t Big Be n – No p o stc a rd o f Lo nd o n wo uld b e c o mp le te witho ut the ic o nic ima g e o f Big Be n lo o ming in the b a c kg ro und . A to ur c o mp a ny in Lo nd o n c o uld id e ntify a sp e c ific lo c a tio n fo r a n XP G e o no d e , w hic h wo uld ra in XP o n visito rs who c a me to ta ke p ho to s with Big Be n in the b a c kg ro und . This XP c o uld the n b e use d to p urc ha se d isc o unts o n d o ub le -d e c ke r b us rid e s thro ug ho ut Lo nd o n, p ro vid e d b y the sa me to ur o p e ra to r. Me e t Mo unt Eve re st – o ne uniq ue fe a ture whic h will b e a va ila b le fo r use with G e o no d e s is the c o nc e p t o f sc a rc ity. A lo c a tio n, suc h a s C e ntra l Pa rk, whic h is fre q ue nte d b y millio ns o f p e o p le e ve ry ye a r, mig ht yie ld ve ry little in the wa y o f XP ra ins. Ho we ve r, a lo c a tio n whic h is a lmo st ne ve r visite d wo uld b e p e rmitte d to a c c umula te a muc h mo re e xte nsive sto re o f XP, whic h wo uld c o rre sp o nd to ho w muc h wo rk is ne e d e d to re a c h the G e o no d e . The first p e rso n to unfurl a n XP fla g o n the summit o f Mo unt Eve re st a nd a c c e ss the G e o no d e the re , wo uld und o ub te d ly re c e ive a fa nta stic re wa rd , b o th re g a rd ing a c tua l huma n e xp e rie nc e a nd XP. Me e t Ne w Yo rk C ity – a no the r uniq ue fe a ture tha t wo uld sup p o rt G e o no d e d istrib utio n is the use o f “ G e o Dro p s.” The se d ro p s wo uld e na b le use rs o r a c o m p a ny to e sta b lish XP Dro p Po ints a t a ny p o int g e o g ra p hic a lly whe re the y c o uld b e d isp la ye d o n a ma p , b ring ing me mb e rs o f the XP c o mmunity into ra ng e to a tte mp t to c o lle c t the XP. 12 | P a g e

In te rms o f ma rke t sizing , this ha s the p o te ntia l to ma ke Po ke mo n G o , whic h ha s re ve nue s o f $268 millio n a s o f Aug ust 12th, 201710, lo o k tiny b y c o mp a riso n. Inte g ra ting Adve rtising with the XP Ne two rk using G e o no de s: The p rima ry g o a l o f XP ha s a lwa ys b e e n to a tte mp t to find a wa y to inc e ntivize wha t is g o o d in the huma n e xp e rie nc e , a nd re wa rd p e o p le fo r the ir invo lve me nt in a b ro a d e r g lo b a l e xtra na tio na l ne two rk. XP is c o ntinuo usly lo o king fo r wa ys to e nha nc e o ur o ffe ring s to huma nity. O ne suc h wa y we c a n d o this is thro ug h le ve ra g ing the XP ne two rk to fund va rio us so c ia l a nd e nviro nme nta l p ro je c ts. The wa y tha t we d o this is b y o ffe ring a d ve rtising p la c e me nt in the XP Mo b ile Wa lle t whic h is b a se d o n the g e o g ra p hic lo c a tio n o f a n XP use r.11 This will ma ke it p o ssib le fo r the XP Fo und a tio n to se ll a d ve rtising sp a c e to ha nd se le c te d c o mp a nie s a nd d ire c t a la rg e p o rtio n o f the p ro c e e d s fro m this a d ve rtising to p re se rva tio n e ffo rts. Fo r e xa mp le , a n XP use r in Yo se mite Na tio na l Pa rk ma y re c e ive a n a d ve rtise me nt fo r No rth fa c e a p p a re l, p a rtne re d with ra in fro m a G e o no d e . Fo r the first time , this c re a te s a me c ha nism tha t b o th a llo ws the d e live ry o f a d ve rtising c o nte nt to the e nd - use r, inc e ntivize s the e nd -use r to a c kno wle d g e the a d ve rtising c o mp a ny, a nd simulta ne o usly wo rks to p re se rve the Na tio na l Pa rk syste m with a d ve rtising re ve nue . This c o nc e p t is still und e r d e ve lo p me nt, a nd will b e e xp lo re d in g re a te r d e p th in a la te r p ub lic a tio n. VII. C o nc lusio n This is just the b e g inning o f wha t XP c a n a c c o mp lish. 2018 is to b e a ye a r o f c a p a c ity b uild ing a nd e c o syste m g ro wth. The XP Te a m lo o ks fo rwa rd to the c o ntinue d sup p o rt o f the XP C o m munity a s we wo rk to ma ke XP the wo rld ’ s p re mie r e xp e rie nc e -b a se d c urre nc y in g a ming , sp o rts, a c a d e mic s, a nd e ve ry o the r a re a o f life . XP: Do it fo r the e xpe rie nc e ! 10 Busine sso fAp p s.c o m , 2017 11 This will, o f c o urse , o nly wo rk fo r a n XP use r who ha s g o ne into the ir wa lle t a nd a c tiva te d the lo c a tio n re p o rting so tha t the y c a n re c e ive g e o -ra ins. 13 | P a g e

White pa pe r C ha ng e Lo g Da te : C ha ng e s : 25- De c - 17 (v3.0) Initia l Po sting 29- De c - 17 (v3.01) Two typ o s c o rre c te d (tha nks Shb o ur!) No tic e a b o ut the white p a p e r p e rma link a d d e d White p a p e r C ha ng e Lo g Ad d e d 14 | P a g e