Wrapped XDC
Crypto Overview
Purpose and Utility
Wrapped XDC (WXDC) is an ERC-20 version of the native XDC token from the XDC Network. Its primary purpose is to enable XDC holders to interact with Ethereum-based decentralized applications and DeFi protocols while maintaining their exposure to XDC. The wrapping process involves depositing XDC tokens and receiving an equivalent amount of WXDC tokens, which are backed 1:1 by the deposited XDC.
Business Model and Operations
The wrapping mechanism is transparent and straightforward: users deposit XDC and receive WXDC tokens that can be used within the Ethereum ecosystem. The process is reversible, allowing users to unwrap their WXDC back to XDC at any time. This operation facilitates legitimate cross-chain functionality and increases the utility of the XDC token.
Real-World Adoption
WXDC serves a clear technical purpose in enabling cross-chain functionality between XDC Network and Ethereum. While usage metrics are limited, this is typical for wrapped tokens whose primary function is to serve as a bridge between blockchain networks.
Platform Development
The wrapping mechanism is maintained and operates as intended. The technical implementation follows standard wrapped token protocols, similar to other wrapped assets in the cryptocurrency ecosystem.
Token Distribution and Governance
WXDC tokens are created only when XDC is deposited into the wrapping smart contract, ensuring a transparent and verifiable 1:1 backing. There is no pre-mine or founder allocation since WXDC is purely a wrapped version of existing XDC tokens.
Crypto Impact
To assign a comfort level investing in Wrapped XDC from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Wrapped XDC.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.