What is Function X (FX)?

Deep Dive

1. Purpose & value proposition

Function X began as a bridge between traditional finance and DeFi, offering cross-chain transfers for assets like ERC-20 tokens. Its 2024 rebrand to Pundi AI introduced:
- Data marketplace: Users earn FX tokens by labeling AI training data (“tag-to-earn”)
- Enterprise solutions: Partnerships with Flop AI and NVIDIA’s Inception Program for specialized AI agents
- Real-world integration: Collaborations like Paxos/Cyan’s gold tokenization in South Africa

Retains original cross-chain functionality through f(x)Wallet, allowing seamless swaps between Ethereum and FX Core.

2. Technology & architecture

• Hybrid chain: Combines Cosmos SDK base with EVM compatibility for Ethereum dApp migration
• Relay nodes: Facilitate cross-chain transactions with adjustable reliance thresholds (≥75% node consensus required)
• Dual-chain gas: FX token handles fees on both native chain and Ethereum-linked transactions

Testnet documentation shows 3-second block times and ~2,000 TPS capacity (Pundi AI).

3. Tokenomics & governance

• Supply: 784M circulating (self-reported), 1.39B max supply
• Distribution: 20% released at launch, 80% distributed over 15 years via Proof-of-Service rewards
• Staking: 21-day unbonding period for delegated tokens, 8-hour reward withdrawal delay

Whales control 84.46% of circulating supply (CoinMarketCap data), creating centralization risks despite governance voting features.

Conclusion

Function X’s evolution into Pundi AI positions it at the blockchain-AI intersection, though high token concentration and reliance on enterprise partnerships introduce volatility risks. Its cross-chain infrastructure remains functional, with $188K daily volume suggesting niche adoption.

Critical question: Can Pundi AI’s data marketplace achieve network effects before larger competitors replicate its model?