xDai Native Token

The xDai Stable chain is an EVM-based sidechain. The chain is compatible with smart contracts developed on the Ethereum network.

The xDai token is the native currency of the xDai chain. It is a stable currency, pegged 1:1 with DAI, and is used for on-chain transactions and associated gas fees.

xDai is created through the TokenBridge mechanism, where DAI is locked in a smart contract and the same amount of xDai is minted on the xDai chain. When a user bridges xDai back to DAI, the xDai is burned and the DAI is unlocked. For this reason, 1 xDai always equals 1 DAI.

xDai rewards are paid to stakers based on the total amount of DAI locked in the bridge. Rewards are paid through an interest-earning mechanism whereby the DAI in the bridge is converted to CHAI (an interest bearing stable coin created by MakerDAO). Interest accumulated during a staking epoch is distributed at the end of the epoch to participating stakers. See xDai Rewards for more information.

Validators receive additional xDai through transaction fees (though this is a small amount, as on-chain transactions are very inexpensive).

The xDai chain is an ideal candidate to incorporate delegated Proof of Stake and the STAKE token. xDai validators will make the final decision on whether or not to upgrade.