Staked $DXP ( $vDXP)

Governance with style.

$vDXP is an ERC-20 token that serves dual purposes within the Dexponent ecosystem. Firstly, it acts as the claim token for RootFarm deposits, maintaining a 1:1 peg with $DXP when initially minted. Secondly, it functions as the governance token for the protocol, giving holders voting rights proportional to their holdings. When users deposit $DXP into the RootFarm, they receive an equivalent amount of $vDXP, representing their claim on the locked $DXP. This mechanism ensures that governance participants have skin in the game, as they must commit their $DXP to the protocol to participate in governance. A key innovation in the $vDXP design is its transfer fee mechanism. Whenever $vDXP is transferred between addresses, a small fee is applied, this fee is burned from the total supply, and simultaneously, an equivalent amount of $DXP is unlocked from the RootFarm's locked pool. This unlocked $DXP effectively counts as new yields for the RootFarm, creating a sustainable source of rewards for RootFarm participants. This mechanism ensures that token transfers contribute to the protocol's economic activity and reward long-term holders.

$vDXP Utility

1. Community-Delegated Farm Spots:

   One of the primary utilities of $vDXP is empowering the community to award limited Farm spots to deserving Farm Owners who can enhance the ecosystem’s value. Instead of purchasing a spot by paying the required $DXP fees, Farm Owners can secure a spot through community delegation of $vDXP for a set period. This fosters a merit-based approach, ensuring trustworthy and high-quality contributors can deploy their strategies within the protocol.

2. Governance: The Dexponent protocol is designed to progressively decentralize its governance model. Initially managed by the core team and large token holders, governance will transition to a decentralized structure as more tokens are minted and distributed. This aligns with the protocol's vision of a fully decentralized ecosystem.

   To submit proposals, a holder must possess a minimum threshold of $vDXP, ensuring that only stakeholders with significant commitment to the protocol can initiate governance actions. This requirement, combined with the cooling period, creates a robust governance system that balances participation with protection against manipulation.

3. Protocol Fee Distribution:

   Any revenue generated from protocol fees is distributed amongst vDXP holders based on the proportions of their vDXP holdings. This creates a direct financial incentive for users to stake their $DXP and hold $vDXP, as they receive a share of the protocol's revenue stream proportional to their $vDXP holdings.

4. Cool-down Period:

   To ensure that governance participants have a long-term interest in the protocol's success, $vDXP implements a cooling period functionality. The system maintains a `lastAcquireTimestamp` for each account, tracking when the user last received tokens. Before a user can vote or participate in certain governance actions, they must wait for the cooling period to elapse.

   This prevents governance attacks where an entity might acquire a large amount of $vDXP just before a vote and then dispose of it immediately after. The cooling period ensures that only committed, long-term stakeholders can influence protocol decisions.

By making $vDXP a core part of the protocol's governance as well as incentive distribution model, Dexponent ensures that everyone who has liquidity in the RootFarm also has ownership in the protocol. This alignment of interests creates a stronger, more resilient ecosystem where participants are incentivized to act in the protocol's long-term best interest.