xDai

The Ethereum sidechain that makes our DAO possible

FEFE is an ERC20 token in the ETH cryptocurrency ecosystem that runs on the xDai sidechain.

Collecting FEFE tokens is free

Those looking to collect FEFE tokens do so freely without the need for bridging. It works almost exactly the same as the ETH network, you just need to paste a few fields into your Metamask so that it recognizes the xDai network. Here is a guide for setting up Metamask with xDai.

Running a DAO on the ETH mainnet is currently prohibitively expensive and very slow. The current gas fees are so high that a simple vote on a proposal would cost $20+ for every person that votes! Not to mention the several thousand dollars worth of transactions required to setup the DAO.

The xDai sidechain on the other hand executes transactions in seconds rather than minutes, and it's possible to do dozens of transactions for less than a penny. There's even a faucet that gives anyone $0.01 in xDai every day that they request it, meaning that voting is effectively free for everyone.

Since our DAO intends to be very active with lots of proposals and votes being made, it would be a very bad idea to run this on the ETH mainnet.

xDai Sidechain vs Ethereum Mainnet

There are of course tradeoffs to using the sidechain. The first is the accuracy of the entire blockchain, but that's not really important to us. We're not transferring millions of dollars or nuclear codes with our DAO, we're just voting on proposals and getting organized. We don't need that level of accuracy.

Token Bridge from Ethereum

In order to get existing ETH or ERC20 crypto tokens into the xDai sidechain, they need to be "bridged" from the Ethereum network mainnet. So if you already have some ETH or DAI or USDC etc , you'd need to bridge them to get them on the sidechain, and please beware that there are ETH gas fees for doing the bridging.

If you have DAI, you would use the DAI bridge.

If you have any other ERC20 token you would use the Omnibridge.

Ways to acquire xDai stable tokens

• From another user on the xDai Chain.

• Converting Dai to xDai using the xDai Bridge.

• Purchase directly on BitMax with the xDai/USDT Pair.

• Purchase directly with fiat using Ramp.Network.

• Trading on Honeyswap (you will need a small amount of xDai to start trading).

• BlockScout Faucet ($0.01 for free, once per day)

Difference between the Dai and xDai Token

It's important to note that xDai is both the name of the blockchain AND the name of the stable cryptocurrency used on the chain.

Dai is a separate stablecoin that is pegged to the US dollar, and uses several fancy mechanisms to always keep it that way. They run on a sort of "gold standard" by keeping a very large amount of collateral locked up that backs up the price of DAI with assets.

The important thing to understand is that 1 xDai = 1 Dai = $1 USD.

xDai is a totally different project than Dai, but xDai is always created from Dai and so is also always worth $1 USD.

For more information and an ELI5 explanation of xDai, you can read more here.