What is XH5?
XH5, pronounced Shave, is a personal Life Token Experiment based on the Stellar blockchain. XH5 tokens are given freely to people who inspire me, and those tokens are repurchased by the Shave account. It is a personal charity that I can run on my smartphone, from anywhere in the world, funded by whatever I choose to donate.
What is a Life Token?
A Life Token, at its most basic level, is an IOU that can be redeemed by the recipient at any time. The value of the IOU is derived from the assets held in the Shave account, and a purchase order for the entire outstanding supply is always in place.
How does that work?
I have donated a portion of my savings to be put towards the repurchase of all outstanding XH5 tokens. (You can see a list of my donations on the Balance Sheet) Half of these donations are locked up in a buy order to repurchase the entire outstanding supply. A portion of the remaining donation is applied towards an active Buyback Program in an attempt to actively reclaim the outstanding supply.
Once lumens or other assets have been donated to the Shave account they are locked in until liquidation, or to be used towards repurchasing the outstanding XH5 supply.
At Liquidation, holders of the XH5 token will be entitled to a share of the remaining account value. At that point, all XH5 tokens held in the Shave account will be burned, all assets other than lumens will be liquidated, and a single buy order will be put in place for the outstanding supply. Allowing token holders to redeem their XH5 at any time.
When are the Current Stats updated?
The Current Stats, which include both the Real and Melt Value of each XH5 token, as well as the Total Supply and Account Balance, are published on the 20th of every month. Each Monthly Report will calculate these numbers along with relevant information about the growth, or lack thereof, of the XH5 Account. Besides the Monthly Report, the Current Stats can also be found on the main XH5 page as well as the Monthly Reports page.
Why doesn’t the Account Balance match the number of Lumens in the Account? AKA, How is Account Balance determined?
The Account Balance is a Total Account Valuation of the XH5 Account, not simply a Lumen balance. This is found by adding up the value of the assets held by the XH5 wallet. The value of XH5 tokens held in the Shave account is then subtracted from that to get an accurate Account Balance that is not shown in Stellar Expert. This valuation is updated monthly and is released as a screenshot during the Monthly Report.
What are the Assets that make up the value of the XH5 token?
A variety of assets are held in the XH5 account, not just Stellar lumens. While this adds significant risk to the long-term value of the account I feel it is important to support other projects on the Stellar network by holding their tokens. At any time the Balance Sheet for XH5 can be viewed, which covers a breakdown of assets in the account as well as recent donations, and it is updated monthly.
What does Real Value mean?
The Real Value is where liquidity is maintained. All outstanding XH5 Life Tokens will be repurchased at that price. This is guaranteed by funds locked up for that purpose and is updated monthly. The Real Value is always 50% of Melt Value, and once set it will not be lowered, even if the Melt Value falls in the future.
What does Melt Value mean?
The Melt Value is what an XH5 Life Token would be worth if the account was liquidated that moment, without any price slippage. Keep in mind that the Melt Value will not be realized until I have died and the account is liquidated to pass onto my beneficiaries, aka XH5 token holders. Melt Value is calculated by the total value of the XH5 account divided by the token supply. XH5 tokens held in the XH5 account do not count towards the Melt Value as these would be burned prior to liquidation of the account.
What is Adjusted Melt Value?
Adjusted Melt Value is not a figure that is published, but is important to consider for long term holders of the XH5 token. Where Melt Value is determined by the value of the XH5 account divided by the Total Supply, Adjusted Melt Value is determined by the account value divided by Total Supply minus what is being held in the XH5 account. This gives a higher, and thus adjusted, Melt Value due to the fact that all XH5 tokens held in the XH5 account will be burned prior to liquidation. That reduces the supply and increases the share of the account for all remaining token holders.
How to Establish a Trustline?
There are several options for establishing a trustline for XH5 and these are covered in detail on the How to Establish a Trustline page.
What is the Buyback Program?
The Buyback Program is a set amount of Stellar lumens put aside to buy back XH5 on a regular basis. It will continue buying XH5 at the lowest price available until the budget is depleted. It is important to keep in mind that the Buyback Program actually lowers the Melt Value of the account over time by exchanging that value for outstanding XH5 tokens.
Why Trail Guide instead of Road Map?
Every For-Profit Cryptocurrency Project has a Road Map. They have their roads, I am in the wilderness, blazing a new trail. I consider the Life Token Experiment a personal charity that I can run from my smartphone anywhere in the world, including hostels in foreign countries, long-distance hiking trails, and while living in the woods.
I don’t live in the city chasing money, I live in the wilderness trying to give it away.
Why Grey Paper instead of White Paper?
Unlike a white paper, which is more of a technical or marketing document for business, a Grey Paper, is not something that is set in stone. It’s more like an outline of an idea that could be built into a white paper or a book, but for now, it is a few thoughts organized in a way that makes sense to the general audience. The term originates from the Use of Reports Literature by Charles P. Auger written in 1975.
What is X-Day?
X-Day is on July 20th of every year. It is a day of massive change, and it is the day where the next year’s goals and Trail Map are laid out. Think of it as a personal New Year’s Eve.
What is the Burn Schedule?
The burn schedule for XH5 was meant to reduce its supply at a rate of 182,700 XH5 per month, starting January 20th, 2020, and ending July 20th, 2020, AKA X-Day. During that time the Total Supply of XH5 was reduced from 1,827,000 to just 548,691. And since the issuing account is locked, no tokens can ever be issued.
Where can I get XH5?
Since I am trying to encourage Stellar adoption, XH5 is free, in person, to people who have a Stellar wallet and an XH5 trustline.
Meet me on the trail or while passing through your city to receive free XH5. That’s it. No other requirements.
XH5 can be also be purchased via any number of Stellar wallets and exchanges. It is important to remember that the purchase of an XH5 token should be considered a donation to the token holder and not to the Shave account. The only price at which redemption of the IOU is guaranteed, prior to liquidation of the Shave account, is the Real Value.