Onyxcoin: Introduction to the Onyx Protocol

What is Onyxcoin

Friends, imagine we live in a digital world where we not only have digital currencies, but also a variety of digital assets, such as digital artworks (NFTs), in-game items, and even digital certificates representing real-world assets. Managing this diverse array of digital assets is like managing a huge warehouse full of treasures, requiring a system that is both secure and efficient. Onyxcoin (abbreviated as XCN) is the “master key” and “smart manager” in this system.

Simply put, Onyxcoin is the core token of the Onyx Protocol blockchain project. The Onyx Protocol was originally conceived as a “super digital ledger,” aiming to make digital asset management simpler, safer, and to enable better collaboration between different digital networks. Later, it evolved into a more advanced “three-layer” blockchain (referred to as the XCN Ledger), which is built on the Ethereum ecosystem, specifically utilizing Arbitrum Orbit technology, with Base (a Layer 2 network) as the settlement layer and AnyTrust as the data availability layer. This is like building a dedicated express lane (Arbitrum Orbit) on a highway (Ethereum), with its own service areas (Base and AnyTrust), to make the circulation of digital assets faster, cheaper, and smoother.

So, Onyxcoin is not just a digital currency; it’s more like a multifunctional tool that can be used to pay network fees, participate in project governance, and even for staking (which you can think of as depositing money to earn interest while helping the network operate) to earn rewards. Its application scenarios are very broad, ranging from decentralized finance (DeFi, which is financial services without banks or intermediaries) to NFT marketplaces, in-game microtransactions, and even enterprise-level blockchain accounting services—Onyxcoin aims to play a role in all of these.

Project Vision and Value Proposition

The vision of Onyxcoin is like building an “interchange” that connects all digital assets, allowing all kinds of “vehicles” (digital assets) in the digital world to move freely and unimpeded. Its core mission is to develop a cryptographic ledger that maximizes security, scalability, and ease of use, thereby building a more efficient and interconnected digital economic system.

The core problems it aims to solve are the “inefficiency of capital” and “centralization” in current decentralized lending markets. Imagine that traditional financial services have many intermediaries, are inefficient, and power is concentrated. The Onyx Protocol aims to provide a transparent, secure, and fully decentralized alternative, allowing people to lend and borrow directly peer-to-peer, reducing intermediary fees and cumbersome processes. In addition, it is committed to addressing the high transaction fees on Ethereum mainnet (Layer 1) by providing a more cost-effective alternative through its “three-layer” architecture. It also focuses on user data privacy and financial security, aiming to protect users’ transaction privacy through advanced cryptographic technologies.

Compared to similar projects, the unique feature of the Onyx Protocol is its modular “three-layer” architecture, which allows developers and enterprises to customize blockchain applications according to their needs, as flexibly as building blocks. It also supports lending for multiple types of digital assets (including NFTs), and through a decentralized autonomous organization (DAO), allows XCN token holders to participate in project governance, truly achieving community-driven development.

Technical Features

The technical features of the Onyx Protocol are like the sophisticated structure and efficient engine designed for this “digital interchange”:

Three-Layer Architecture

The Onyx Protocol is a “three-layer” blockchain, known as the XCN Ledger. It does not run directly on the Ethereum mainnet, but is built on Arbitrum Orbit, using Base (an Ethereum Layer 2 network) for final transaction settlement, and AnyTrust technology to ensure data reliability. This design is like diverting the traffic pressure of a big city (Ethereum) onto multiple highways and side roads, greatly improving overall traffic efficiency.

Ethereum Virtual Machine (EVM) Compatibility

This means the Onyx Protocol is fully compatible with smart contracts on Ethereum (Smart Contracts, which you can think of as self-executing digital contracts). It’s as if the Onyx Protocol system can “understand” Ethereum’s “language,” allowing applications and developers on Ethereum to seamlessly migrate to the Onyx Protocol.

Multi-Asset Support

The Onyx Protocol can handle multiple types of digital assets simultaneously, including Ethereum tokens (ERC-20), non-fungible tokens (NFTs, ERC-721), and multi-functional tokens (ERC-1155). This is like a multifunctional warehouse that can store goods of all shapes and sizes.

Consensus Mechanism

To ensure network security and stability, the Onyx Protocol adopts a “federated consensus protocol,” where trusted validators (Block Signers, which you can think of as the network’s “bookkeepers”) jointly validate transactions. Some sources also mention it is a scalable Proof-of-Stake blockchain, a way to secure the network by staking tokens, which is more energy-efficient than traditional “mining.”

Security and Privacy

The Onyx Protocol employs multiple security measures, including staking mechanisms, liquidation modules, and smart contract audits. Some sources mention it may use advanced cryptographic technologies such as Zero-Knowledge Proofs and Ring Signatures to protect transaction privacy, which is like putting an “invisibility cloak” on your digital transactions.

High Scalability and Efficiency

The Onyx Protocol is designed to achieve high throughput and low transaction costs, enabling a large number of transactions to be completed quickly and cheaply.

Cross-Chain Interoperability

The Onyx Protocol can seamlessly integrate with other networks such as Ethereum and Base, enabling cross-chain asset transfers and liquidity sharing. This is like building highways between different cities, facilitating the flow of goods and people.

Tokenomics

The tokenomics of Onyxcoin (XCN) are like the “monetary policy” and “resource allocation rules” of this digital economy, determining how XCN tokens are issued, circulated, and used.

Basic Token Information

• Token Symbol: XCN
• Issuing Chain: XCN is an ERC-20 token running on the Ethereum blockchain.
• Total Supply: The total supply of XCN is fixed at 48,470,523,779. This means no new XCN will be created out of thin air; the total supply is limited.
• Deflation/Burn: The Onyx Protocol adopts a deflationary tokenomics model, with tokens periodically burned. For example, 5 billion XCN have been permanently burned and transferred to a “dead address,” making them unusable forever. In addition, token releases are controlled to avoid excessive inflation.
• Current and Future Circulation: As of early 2025, about 23 to 26.65 billion XCN are in circulation. There is also an “Unlocked Circulating Supply” (UCS) of about 35.87 billion XCN.

Token Utility

XCN tokens play multiple roles in the Onyx ecosystem, like a multifunctional tool:

• Governance: XCN is the core governance token of the Onyx Protocol. Community members holding XCN can participate in the decentralized autonomous organization (DAO) by staking tokens, proposing and voting on important matters such as protocol upgrades and fund allocation. This is like shareholders participating in major company decisions.
• Payment: XCN is used as the “gas token” on the Onyx network, paying for transaction fees and smart contract execution. It can also be used to pay for various services within the Onyx ecosystem, enjoying discounts or access to premium features.
• Staking: Users can stake XCN to help maintain network security and stability, and receive additional XCN rewards in return. This is like depositing money in a bank to earn interest, while your deposit also supports the bank’s operations.
• Incentives: XCN is also used to incentivize liquidity providers and DeFi participants, promoting ecosystem activity and growth.

Token Distribution and Unlocking Information

• Initial Distribution: XCN was initially distributed via airdrops to users outside the US and non-sanctioned regions.
• DAO Controlled Supply: The Onyx DAO controls about 25 billion XCN, with 10 billion stored in the DAO treasury and another 15 billion subject to a time-locked smart contract.
• Unlocking Mechanism: The 15 billion locked XCN began unlocking in April 2024, releasing at a rate of 200 million XCN per month, with a one-time release of previously accumulated portions. This gradual unlocking mechanism helps control market circulation and avoid price shocks from large one-time releases.

Team, Governance, and Funding

The success of a project depends on the people and mechanisms behind it, and Onyxcoin is no exception.

Core Members and Team

The Onyx Protocol was originally founded by venture capitalist Adam Ludwin in 2014. Today, the project is led by a team of experienced blockchain developers and fintech experts focused on smart contracts, protocol optimization, and financial infrastructure. The team values community interaction, maintaining transparency through Discord, Twitter, and governance forums, and regularly publishing roadmaps, progress reports, and AMA sessions.

Governance Mechanism

The Onyx Protocol is governed by a decentralized autonomous organization (DAO). This means XCN token holders have decision-making power, and can vote on important proposals by staking XCN, collectively determining the project’s direction. This model ensures decentralization and community-driven development, like a community managed by all shareholders together.

Funding

The Onyx Protocol received over $40 million in early-stage funding, with support from many well-known institutions, including Nasdaq, Orange, Capital One, Citigroup, Visa, SV Angel, Nasdaq Ventures, Capital One Ventures, and Khosla Ventures. This shows the project has gained recognition in traditional finance and technology sectors.

Project History

It’s worth noting that the Onyx Protocol did not emerge overnight. It was originally Chain.com, and in March 2022, its token CHN was renamed XCN. In January 2023, the Chain brand was rebranded as Onyx. In 2018, it was acquired by Lightyear Corp., a subsidiary of the Stellar Development Foundation, and in 2021, it became a privately held company. This evolution reflects the project’s ongoing adjustment and development.

Roadmap

The roadmap is like a “navigation chart” for the project, recording important milestones in the past and pointing to future directions.

Historical Milestones and Events

• 2014: Project founded by venture capitalist Adam Ludwin.
• 2018: Acquired by Lightyear Corp., a subsidiary of the Stellar Development Foundation.
• December 2020: Related project OnX Finance launched, expanding DeFi products on Ethereum.
• 2021: Became a privately held company.
• March 2022: Token CHN renamed to XCN.
• January 2023: Brand rebranded from Chain to Onyx, officially launching the Onyx Protocol and Onyx DAO. At the same time, 5 billion XCN were burned, and control of 15 billion XCN was transferred to the DAO and locked until April 2024.
• Q2 2023: NFT trading volume based on Onyxcoin increased by 287%.
• April 2024: The 15 billion locked XCN began gradual unlocking, releasing 200 million per month.

Future Plans and Key Milestones

• 2023 Roadmap: Plans to launch the Onyx Liquidity Protocol (OLP), a lending platform based on the Compound protocol, supporting aggregated lending for multiple token types such as Ethereum, ERC-20, ERC-721, and ERC-1155.
• Ongoing Development: The project plans to continue expanding token utility, launch new DeFi products, seek strategic partnerships, and optimize transaction fees and speed.
• Long-Term Vision (2026): The goal is to develop a Layer 1 network specifically for financial institutions, providing blockchain solutions for payment settlement.
• Ecosystem Building: Currently developing Onyx AI (a real-time blockchain agent), Bridged USDC (cross-chain USDC), Super Bridge (a fast and secure cross-chain protocol), and integration with Thirdweb to facilitate developer application building on Onyx.

Common Risk Warnings

All investments carry risks, and blockchain projects are no exception. Understanding these risks helps us view Onyxcoin more objectively.

Technical and Security Risks

• Multi-Token Management Complexity: The Onyx Protocol supports multiple digital assets, and managing these different types of tokens and ensuring their liquidity may bring certain complexities.
• Smart Contract Risks: Although the project mentions smart contract audits, smart contracts themselves may have vulnerabilities, and if attacked, could result in asset loss.
• Technical Implementation Challenges: As a complex “three-layer” blockchain architecture, its technical implementation and maintenance may face challenges and unforeseen technical issues.

Economic Risks

• Market Volatility: The cryptocurrency market is known for its dramatic price fluctuations. XCN’s price may be affected by overall market sentiment, Bitcoin performance, and other macroeconomic factors, possibly experiencing sharp rises or falls.
• Liquidity Risk: Although the project aims to improve liquidity, in some cases, specific assets or trading pairs may lack liquidity, affecting trading efficiency.
• Competition Risk: The blockchain field is highly competitive, with many projects vying for market share. The Onyx Protocol needs to continuously innovate to remain competitive.

Compliance and Operational Risks

• Regulatory Changes: Global regulatory policies on cryptocurrencies are still evolving, and future regulatory changes may impact the operation of the Onyx Protocol and the value of XCN.
• Transparency Issues: Some analyses mention that parts of the whitepaper lack specific publication dates and author information, which may affect the project’s transparency and credibility in the eyes of some investors.
• Brand Confusion: There have been cases of confusion with JP Morgan’s “Onyx” brand. Although the project has clarified that the two are unrelated, care should still be taken to avoid misunderstandings.

Please remember, these risks are common and not unique to Onyxcoin. Always conduct thorough personal research before making any decisions.

Verification Checklist

To help everyone better understand and verify the Onyxcoin project, here are some links and information you can check yourself:

• Block Explorer Contract Address: Onyxcoin (XCN) is an ERC-20 token, and its contract address on Ethereum is:
  0xA2cd3D43c775978A96BdBf12d733D5A1ED94fb18
  . You can check this address on Etherscan and other block explorers to view XCN’s transaction records, holder distribution, and more.
• GitHub Activity: The project’s source code is usually public on GitHub for community review and audit. While search results mention the source code of the related project OnX Finance is available on GitHub, it is recommended to directly look for the official Onyx Protocol or XCN Ledger GitHub repositories to assess development activity.
• Official Website/Whitepaper: Check Onyxcoin’s official website (usually
  onyx.org
  or related domains) and the latest whitepaper for the most direct and detailed project information.
• Community Forums/Social Media: Follow Onyxcoin’s official accounts on Discord, Twitter, and other social media to stay updated on project news and community discussions.

Project Summary

Friends, from the above introduction, we can see that Onyxcoin (XCN) is an ambitious blockchain project. It is not just a digital currency, but the core of the Onyx Protocol’s “three-layer” blockchain ecosystem. It is committed to solving some pain points in digital asset management and decentralized finance, such as improving efficiency, reducing costs, and enhancing security and privacy protection.

The Onyx Protocol’s “three-layer” architecture leverages advanced technologies such as Arbitrum Orbit, Base, and AnyTrust to provide a scalable, efficient, and Ethereum-compatible platform supporting lending of multiple digital assets, NFT trading, gaming applications, and enterprise-level services. The XCN token, as the “fuel” and “voting right” of its ecosystem, empowers holders to participate in governance, pay fees, and earn rewards, and, through a fixed total supply and burn mechanism, aims to build a sustainable economic model.

The project is backed by an experienced team and has received early investment from several well-known institutions, providing a foundation for its development. Its roadmap also shows a grand vision from early development to future financial institution-oriented goals.

However, like any emerging technology and investment, Onyxcoin also faces technical challenges, market volatility, regulatory uncertainty, and other risks. Therefore, before considering participation in any blockchain project, be sure to conduct thorough personal research (Do Your Own Research, DYOR) and clearly understand the risks involved. All of the above is for informational sharing only and does not constitute any investment advice.

For more details, please refer to Onyxcoin’s official materials and community discussions.