Project X: Passive Income with Crypto Nodes
In the world of crypto, there is no lack of creative ways to make a profit. Project X is a node project that caught the attention of several of us here at CryptoCravers. As always, do your own research, this is not financial advice. Let’s take a look at what we found.
Project X is a node project (Avalanche), based on the fundamentals of Strong Nodes, which set the stage for the node investment space. There is said to be “The 100” members who originated the project, some of whom worked for Strong nodes and brought their experience to the new project. The claim is that the experience from lessons learned feed into making this a sustainable investment.
When the project originally launched in December, it was touting MASSIVE rewards of .34 PXT2 every day for each node created. The team learned very quickly that this would not be sustainable for long. When they announced that rewards would be halved, they faced the backlash of broken promises and hosted a public AMA. Upon hearing the complaints of one such investor, the response given was quite clear: would you rather have the high rewards for a few months, or lower rewards for years to come.
That was the point that investors quickly realized that the team was serious about their claims of sustainability, even if it meant backlash for slashing rewards. Albeit, .17 PXT2 daily per node is still quite a high reward schema, compared to other projects.
Let’s look at the numbers. Each node produces .17 PXT2 daily. To create a node, a user must pay 10 PXT2 — the standard amount in the node space. Each wallet can hold a maximum of 100 nodes. The node cost is distributed between the rewards pool (70%), treasury (20%), operations pool (0.5%), and the smoothing reserve (0.5%).
There is no buy tax or claim tax on the rewards. The only tax implemented is the sell tax, which is currently 30%. The sell tax is pegged to a sliding scale, based on the value of PXT2: below $12 (30%), $12–15 (25%), $15–20 (20%), over $20 (18%).
Next, we analyzed the code of the smart contract itself. According to our developers, their contract looks very clean, and it is all custom–which is very rare today. Most smart contracts borrow large parts of code from other projects. The efficiency of code in their contract speaks to the level of experience on the team. I’ve attached an example of a few lines of code that is aimed at preventing whales.
As we analyzed their Project X wallets, you can see that they are very transparent with their funds. They maintain a very healthy rewards pool, which is double the size, proportionally, of similar projects. They are also very transparent with the investments they make to keep a constant influx of funds. They invest in community-chosen projects and conduct staking.
So, what’s in the future for Project X? One of the biggest struggles for node projects is finding utility. Without utility, every node project is doomed for failure, unless they find ways to continue pulling in new buyers. There are a few things on the horizon for Project X. First, they intend to enable node transferability. This feature is controversial in the community. Some feel the ability to sell nodes will trigger a massive selloff, while others are excited for the paper hands investors to leave the arena. One of the biggest goals for the project is to release a proprietary blockchain called X-chain. After migrating PXT2 tokens to the new blockchain, they intend to release a slew of new features, like staking mechanisms, NFT integration, gameification, and even a launchpad for other tokens.
Expect to see more reviews of Project X in the future. We are watching it closely and are excited to see what the future holds. Disclaimer: Two members of the CryptoCravers team hold investments with Project X. This article is not intended as financial advice.
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