Dogeparty is a layer on top of the Dogecoin network for new coins and assets that foster creativity and promote social good. Dogeparty is a Counterparty fork that is aimed at smaller value transactions. It is 10x faster and 100x cheaper compared to Counterparty. This makes microtransactions ideal on Dogeparty.
XDP is fuel for the Dogeparty rocket. This XDP fuel can be obtained using Dogecoin during the burn period. There was discussions on using Proof-of-Charity to distribute the XDP but at the end the Proof-of-Burn method is used where Dogecoin are sent to an unspendable address (it looks like DOGEPARTYxxxxxxxxxx) thereby destroying the DOGE eternally.
With XDP, one can issue one's own custom tokens for e-tickets, reward points, game currencies & so on.