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Understanding the XAH token on the XRP Ledger
What is the Xahau (XAH) token on the XRPL?
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 XRP Ledger, community credit, and more. Standard tokens are tracked in relationships called trust lines between accounts and any account can issue a token.
Note: In the past, tokens on the XRP Ledger have also been called "IOUs" (as in I-owe-you ) and "issued currencies". These terms have been discontinued because they do not cover the full range of digital assets that XRP Ledger tokens can represent.
On November 1, 2023 a new XRP Ledger sidechain was launched called Xahau. The Xahau network runs the XRP Ledger protocol but it also introduces several new features not found on the main XRP Ledger blockchain. See this article for more details on Xahau's new features:
Welcome to the Xahau network!
One of the things introduced in Xahau is a new gas token with the trading symbol of XAH. The primary purpose of the XAH token is pay for the transaction costs on the Xahau network.
Yes and No.
Yes. You can purchase XAH tokens but they are not the native XAH coins on the Xahau network. By purchasing XAH on the XRPL, you are purchasing a token that represents XAH. As long as you purchase the XAH token from a trusted issuer, (ie. Gatehub) they will exchange your tokens for "real" XAH coins on the Xahau network. (Or convert it into fiat.) 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.
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.
- 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. Xumm will be releasing a B2M xApp in the near future.
As mentioned earlier, anyone can issue a token on the XRP Ledger.
For example, on October 29, 2023, Gatehub issued 500,000 XAH tokens on the XRP Ledger.
The XAH tokens issued on the Xahau network are different than the XAH tokens issued on the XRP Ledger. Even though the Xahau network runs the XRP Ledger protocol, it is a different and separate network. You can not send XAH tokens directly between to the XRP Ledger and Xahau.
Gatehub issued the XAH tokens as a way to represent the value of a XAH token on the XRPL. They will will honor their XAH as "real" XAH on the Xahau network and will allow you to redeem the XAH tokens for XAH issued on the Xahau.
For more information on Gatehub's issued tokens, check out this article:
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:
- 1.Visit the token issuer's website.
- 2.Read their business plan. (Goals, execution, timeline, tokenomics, etc.)
- 3.Review their marketing plan.
- 4.Research their staff (CEO, developers, support. etc.)
- 5.Research their funding.
- 6.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."
Last modified 6d ago