Supply Dynamics
Last updated
Last updated
The tokenomics structure is designed to balance incentives, controls inflation, and ensures long-term sustainability. The total supply of $DXP is capped at 21 million tokens, divided into two primary categories:
Of the total 21 Million, 60^% of the supply, equating to 12.6^ million $DXP will be minted every block, forming both the circulating and unissued supply. Initially, tokens are minted at a rate of 1 token every block (20 seconds), with the rate halving every four years. The exact timing of halving may vary based on the amount of $DXP recycled during the period.
By default, newly minted $DXP is part of the unissued supply, which is then distributed among Liquidity Providers (LPs), Farm Owners, Yield Yodas, Verifiers, based on the predefined set of terms. The recycling mechanism moves $DXP used for fee payments or returned rewards back into the unissued supply. This controlled release reduces volatility, mitigates uncertainties, and avoids inflationary pressures without relying on token burning.
Token distribution is influenced by time and performance metrics. LPs earn rewards in $DXP, with the option to convert their rewards back into the underlying yield asset they originally supplied to the Farm. To do so, they must return an equivalent amount of $DXP, which is then added back to the unissued supply to reward new LPs entering the protocol. The time-based factor also incentivises early participation.
A pre-minted 40^% of the total supply, amounting to 8.4^ million $DXP, is allocated as follows:
Founding Team, Investors(25^%): To ensure market stability and prevent manipulation, tokens are disbursed over specific schedules, six months for investors and two years for team members.
Public Sales (4^%): Allocated for public token sales & promoting community participation and engagement.
Ecosystem Fund(4^%): Designed to incentivise developers and contributors to build innovative solutions within the protocol.
Airdrops (2^%): Incentivising for community builders.
Existing LP Circulating Supply (5^%): Rewarding existing liquidity providers for their trust in the protocol as well ecosystem circulation.
With a "game-theoretical" incentive structure the protocol helps to maximise returns for liquidity providers while ensuring network and ecosystem stability. LPs receive up to 90^% of the returns generated by their chosen strategy.
Total Supply in Circulation including the Vested & Emissioned supply over time.
