Core Positioning and Project Background of Xterio
Xterio is a Switzerland-based Web3 gaming platform and publisher founded in 2022 by veterans from FunPlus, NetEase, Blizzard, and other traditional gaming giants. It aims to reshape gaming economic models through blockchain and AI technologies. Its core philosophy, “Play-to-Own,” empowers players with real ownership of in-game assets and builds an immersive cross-platform gaming ecosystem.
This Token Insights article delves into how Xterio drives Web3 gaming development through AI technology, a high-performance Layer2 architecture, and a diversified gaming ecosystem.
In 2023, Xterio completed a $40 million fundraising round at a $300 million valuation, backed by top institutions like Binance Labs and FTX Ventures, and received further investment from Binance Labs in 2024. By 2025, its ecosystem had covered over 21 million users, with its flagship title, Age of Dino, ranking first in DappRadar’s DAU rankings.
Technical Architecture and Innovation Highlights
AI-Driven Development Tools and Immersive Experience
In collaboration with AI firm Reka, Xterio developed the “Emotional Engine,” which uses deep learning to simulate complex NPC interactions and emotional expressions, enhancing realism. The Xterio AI Toolkit enables developers to generate personalized game assets and mint them as NFTs, lowering creative barriers.
High-Performance Layer2 Solution
Xterio adopts a dual-chain architecture: XterioChain ETH (based on OP Stack) and XterioChain BNB (based on opBNB), enabling cross-chain asset interoperability and high-frequency transaction processing (up to 10,000 TPS). Its proprietary MACH technology reduces transaction confirmation time to under 10 seconds, with gas fees as low as $0.001, significantly improving the player experience.
User-Friendly Design
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Xterio ID: Gasless login compatible with Web2 users
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Smart Wallet: Supports fiat payments, multi-chain asset management, and crypto debit card binding for offline use
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Cross-Game NFT Interoperability: Allows NFT assets to be used across different games, enhancing liquidity
Tokenomics and Market Dynamics
The XTER token is the governance and utility core of the ecosystem with a total supply of 1 billion tokens. The distribution is as follows:
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Community Incentives: 28% (includes airdrops and task rewards)
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Ecosystem Fund: 26% (for developers and partners)
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Private Investors: 15% (2-year lock-up with gradual release)
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Team and Advisors: 12% (4-year linear release)
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Liquidity & Staking Pool: 5.75%
Token utilities include in-game payments, governance voting (e.g., fee adjustments), staking rewards (12%-18% APY), and airdrop eligibility. Following the TGE on January 8, 2025, the initial circulating supply was 112.5 million tokens. The price peaked at $0.43 on launch day but dropped to $0.21 amid airdrop controversies.
May 19 Binance Alpha Event: Users must hold at least 194 Alpha Points to claim 294 XTER tokens (costing 15 points), triggering a short-term trading volume spike. Investors can track live prices and on-chain data via the JuCoin market page.
Ecosystem Development and Market Competition
Game Portfolio and Partnerships
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In-House Games: Flagship chain game Age of Dino has surpassed 5,000 ETH in NFT trading volume; Befriend reached 7 million users across 200 countries at launch
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Partnerships: Integrated with Uniswap, Aave, and other DeFi protocols; collaborated with Uniqlo and Loft to launch co-branded NFT merchandise
Compliance Strategy
Passed Nigeria SEC pre-approval and partnered with RedotPay to launch fiat on/off ramps, focusing on Southeast Asia and Africa.
Competitive Pressure
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Solana-based derivatives protocol Hyperliquid holds 60% of market share
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Traditional gaming giants (e.g., EA, Blizzard) are accelerating their move into blockchain gaming, crowding user acquisition channels
Risks and Outlook
Key Risks
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Token Sell Pressure: 15% private investor share unlocks in 2026, with daily emissions accounting for 0.8% of circulating supply
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Tech Dependency: Relies on third-party nodes for cross-chain bridges and oracles; downtime may disrupt services
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Regulatory Scrutiny: The SEC’s classification of game tokens as securities could limit institutional participation
Future Plans
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Feature Upgrades: AI risk control module and options trading function to be launched in Q3 2025
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Cross-Chain Expansion: Integration of Cosmos IBC for multi-chain asset interoperability
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Emerging Markets Focus: Joint development with RedotPay for compliant fiat gateways to reduce barriers for Web2 users
Industry analysis suggests Xterio’s “AI + Layer2” model could be a game-changer for Web3 gaming. If it can balance innovation with community governance, it may help shift virtual assets from speculative to utility-driven value.
Neason Oliver
