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What is the Xahau (XAH) token on the XRPL? |
On November 1, 2023 a new XRP Ledger (XRPL) sidechain was launched called Xahau.
The Xahau network runs the same code as the XRPL protocol but introduces several new features not found on the main XRPL blockchain.
One of the things introduced in Xahau is a new coin with the trading symbol of XAH. The primary purpose of XAH is to pay transaction costs on the Xahau network.
One of the great features of the XRP Ledger is that it allows any asset (other than XRP) to be represented on the XRP Ledger as a token. Tokens can represent any type of value, including "stable coins" backed by assets that exist outside of the XRPL, purely digital tokens created specifically on the XRPL, community credit, and more. Tokens are tracked in relationships called trust lines between accounts.
Note: In the past, tokens on the XRP Ledger have also been called "IOUs" (as in I-Owe-You ) and "issued currencies". By themselves, these terms do not accurately cover the entire range of digital assets that XRP Ledger tokens can represent, but they may help you understand the concept a little better.
A good example of a token issuer would be the Gatehub exchange. On October 29-2023, Gatehub isssued 500,000 XAH tokens on the XRPL. At the same, they moved 500,000 XAH tokens into their reserves to back their issued tokens with XAH on the Xahau network. This means that each one of the XAH tokens they created on the XRPL, has a XAH coin on the Xahau network to back it up. The XAH tokens on the XRPL are 'IOUs' for the XAH coins which exist on the Xahau network. If Gatehub issues more XAH tokens on the XRPL, they move more tokens into their XAH reserves. This ensures that the XAH tokens they issue maintain their value on the XRPL.
Yes and No.
Yes. You can purchase XAH tokens on the XRPL, but they are not the same as the native XAH coins on the Xahau network. By purchasing XAH on the XRPL, you are purchasing a token that represents XAH. You are purchasing an IOU for the XAH coin on Xahau. As long as you purchase the XAH token from a trusted issuer, (ie. GateHub) you have the option to exchange your tokens for "real" XAH coins on the Xahau network. Owning XAH on the XRPL is more for investors who do not plan to use the Xahau network. They just plan to buy and hold the asset for speculative purposes.
No. You can not purchase the native XAH coin on the XRP Ledger. The XAH coin only exists on the Xahau blockchain. If you plan to interact with the Xahau network, use any of the features of Xahau or participate in the Xahau ecosystem, you will need to acquire XAH coins via a crypto exchange or via the Burn to Mint (B2M) feature.
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Through a crypto exchange
Companies like Gatehub and Bitrue fully support the Xahau network and will provide services for buying, selling, exchanging, trading, sending and receiving XAH coins.\ -
Through the Burn to Mint feature.
The Xahau network has a unique "Burn to Mint" (B2M) feature which allows you to convert XRP directly into XAH. XRPL Labs will be releasing a B2M xApp in the near future.
Anyone can issue a token on the XRP Ledger and people issue tokens for various reasons.
For example, GateHub issued their XAH tokens as a way to represent the value of a XAH coin on the XRPL. They will will honor their XAH as "real" XAH on the Xahau network and will allow you to exchange their XAH tokens for XAH issued on the Xahau network.
For more information on Gatehub's issued tokens, please refer to this article:
{% content-ref url="../learning-more-about-xumm/gatehubs-issued-tokens.md" %} gatehubs-issued-tokens.md {% endcontent-ref %}
{% hint style="danger" %} Please note, not all token issuers are legitimate. It is import that you trust the issuer before acquiring their tokens {% endhint %}
Anyone can issue a token on the Ledger but not all token issuers are trust worthy.
Reputable companies like GateHub have a proven track record of supporting the XRP Ledger community, but not all token issuers do.
There is no fool proof way of ensuring a token is legitimate. It all comes down to trusting the issuer.
If you are considering owning a XAH token, as a minimum, we recommend that you do the following:
- Visit the token issuer's website.
- Read their business plan. (Goals, execution, timeline, tokenomics, etc.)
- Review their marketing plan.
- Research their staff (CEO, developers, support. etc.)
- Research their funding.
- Check that they have gone through the KYC process.
Remember, when you create a Trust Line you are basically saying,
"I trust you and your token. I have reviewed your business plan. which included your marketing strategy, your goals, your timelines and your tokenomics. It is well organized, realistic and viable.
I have researched your staff including your CEO, your developers and your support personnel and they are all world class, highly motivated and honest people who have well documented employment histories.
I trust your funding sources and I believe you did not simply create a token to try to scam people. I trust your KYC information is legitimate and honest. I trust that you will provide excellent customer support and that you will be easy to contact and reply to my inquiries.
I trust you will not abandon your project. Finally, I trust that you and your staff have the necessary skills and experience to launch and maintain a token on the XRPL."
Yes. We have an xApp called XAH Teleport that allows you to convert XAH tokens on the XRPL into XAH coins on the Xahau network.
You can read all about it here:
{% content-ref url="../all-about-xapps/xahau-xapps/xah-teleport.md" %} xah-teleport.md {% endcontent-ref %}
You could also create an account at the GateHub crypto exchange and send your XAH tokens to their platform and activate your Xahau account from there.
Please refer to this section if you are interested in activating a Xahau account:
{% content-ref url="../getting-started-with-xumm/activating-a-xahau-account/" %} activating-a-xahau-account {% endcontent-ref %}
Yes. We have an xApp called XAH Teleport that allows you to convert XAH tokens on the XRPL into XAH coins on the Xahau network.
You can read all about it here:
{% content-ref url="../all-about-xapps/xahau-xapps/xah-teleport.md" %} xah-teleport.md {% endcontent-ref %}
If you have XAH tokens issued by GateHub, you can also create a Gatehub account, then send your XAH to your GateHub account. From there you can exchange them into XAH coins on the Xahau network if you wish.
Please refer to this article for more information:
{% content-ref url="../learning-more-about-xumm/gatehubs-issued-tokens.md" %} gatehubs-issued-tokens.md {% endcontent-ref %}
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