xxPostage v1.0
- Currently, the xx network doesn’t have the postage system as described in the official whitepaper documents.
- Users are either in the “free” or “unlimited” group.
- If you are in the “free” group, there is a limit to how many messages you can send. But if you are on the “unlimited” list, you can send as many messages as you want.
- The rules for these groups are set by a permissioning server, which broadcasts to all of the gateways about it.
How the “Free” Tier Works
- The “free” tier limits how many messages you can send over a given time period.
- Think of it like a bucket with a hole. The bucket can hold up to 1 million messages. Every day, 10,000 messages leak out of the hole.
- So, if you have sent 1 million messages, you have to wait for some to leak out before you can send more. In practice, free tier users get about 7 new messages to send every minute.
- If you are on the “unlimited” list, these limits do not apply to you. You can send as many messages as you want.
Postage v1.0 Idea
- For v1, we will let users pay to be on the “unlimited” list.
- Users will pay a monthly fee to send as many messages as they want.
- The current free tier limit will be reduced from an essentially unlimited amount to a more reasonable number to make it worth it for heavy users to pay for the unlimited tier.
Q&A about “text messages” vs “data messages”.
Question: Why would anyone need to make 7 text messages a minute?, and how is that fair to allow that many in a free tier? Who is sending 7 text messages every minute?!
Great question and in order to answer it is important to understand what “Data Messages” are and how they operate in the context of a Network:
Imagine you want to send a large piano from one city to another. The piano is too big to fit in one truck, so you divide it into smaller pieces, pack each piece in a separate box, and send them all to the destination city. Once all the boxes arrive, the piano is reassembled to its original form. In the world of computer networks, this piano is like a “data message.” It’s a piece of information that gets broken down into smaller packets for easy transport and then put back together at its destination.
Social Media Text Message:
Now, think of a postcard you send to a friend while on vacation. It has a short message and maybe a picture. This postcard is like the text message you send on social media. It’s a specific type of information you want to share.
Connecting the Two:
When you send that social media text message, behind the scenes, it’s transformed into a “data message” to travel across the internet. It gets broken down, sent in packets, and reassembled, just like the piano. So, while the social media text message is the content you’re sharing, the way it travels on the internet is through the process of data messaging “data packets”. In essence, every time you send a text on social media, you’re actually sending a type of “data message” on the network, but the content of that message is your social media text.
Thus, messages in the context of the xx network can mean a single social media “text message” if the data of that text message, as a data packet, is small enough to fit into one “data message”. If it is too large or includes a photo, video, or multiple items that are large, it will be broken down into multiple “data messages”.
This is why 7 messages per minute, or something in that range is not unreasonable for a free tier of usage on the xx network, since postage is applied to “data messages”.
Postage v1 Economics
- The goal of the v1 postage system is extra rewards for network validators based on network usage.
- As there is no automation at this time, the Foundation will collect the payments and distribute rewards to the validators…
- The Foundation will also offer a service where users can pay with other currencies, not just the native xx. The Foundation will charge a little bit extra for this service.
Setting the Price of Postage
- The Foundation proposes to have a set price for unlimited messaging starting at $1/month. This price will initially be controlled by the Foundation and can change in response to how much usage the network receives. If we are flooded, unlimited tier prices will increase, and vice versa.
- The price in xx will be based on its current market value.
- If using the Foundation’s currency exchange service, the price might be a bit higher like, for example, $1.10/month.
Summary
The xxPostage (v1) system is a strategic move that will improve the sustainability and economic viability of the xx network. Users will still benefit from the generous free tier, and casual users will only need the free tier to use the network without any friction. Partner projects, professionals, and heavy users can take full advantage of the unlimited tier at pricing that is extremely affordable.
This monetization strategy provides an excellent value proposition for users seeking uninterrupted messaging capabilities and also generates revenue for the network validators. As usage grows and more users start to use the unlimited tiers, growth will ensure the network’s longevity and continuous improvement.
By offering a frictionless currency exchange service, the Foundation will broaden the reach of the xx network to a wider user base, making the network more inclusive and providing another mechanism to fuel growth. In essence, the implementation of the xx Postage system is a logical and forward-thinking step, reinforcing the network’s commitment to providing value to its users while ensuring its own growth and stability.
Onwards,
xx Foundation