ICX & DXN Multipliers

Purpose of the Multiplier System

The ICX Protocol incorporates a robust multiplier system designed to amplify user rewards and incentivize active participation. By leveraging ICX and DXN multipliers, participants can enhance their Reflection and Auction Power, maximizing their share of daily yields and increasing their competitiveness in the ecosystem.

1. Boosting Rewards:

   • ICX multipliers increase Reflection Power, enhancing ICX Reflection Yields for ultraLP stakers.

   • DXN multipliers increase Auction Power, improving competitiveness in ICX Daily Auctions.

2. Incentivizing Long-Term Engagement:

   • Weekly maintenance requirements ensure continuous participation and protocol sustainability.

3. Supporting Token Scarcity:

   • The burn mechanism for ICX multipliers adds a deflationary dynamic to the protocol.

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ICX Multipliers

Key Features:

• Purpose: Amplify Reflection Power to boost ICX Reflection Yields.

• Activation: Achieved by staking additional ICX in the Ultra Vault.

• Burn Mechanism: 50% of the ICX staked to increase multipliers is burned, reinforcing token scarcity.

• Weekly Maintenance:

  • Participants must stake an additional 10% of the principal ICX amount weekly - there is no ICX burn attached to multiplier maintenance, only with increasing the multiplier.

  • Failure to meet this requirement results in a 2x reduction in the multiplier.

Multiplier Tiers:

Tier	Multiplier	ICX Required (Y1)	Burned ICX	Locked ICX
2x	2x	12,500 ICX	6,250 ICX	6,250 ICX
4x	4x	25,000 ICX	12,500 ICX	12,500 ICX
6x	6x	37,500 ICX	18,750 ICX	18,750 ICX
8x	8x	50,000 ICX	25,000 ICX	25,000 ICX
10x	10x	62,500 ICX	31,250 ICX	31,250 ICX

Lock Period:

• The remaining 50% of staked ICX is locked for 5 weeks in the Ultra Vault.

Penalty for Early Unlocks:

• If participants penalty unlock ICX tokens before the 5-week lock period ends:

  • Remaining ICX tokens are burned from the total supply.

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DXN Multipliers

Key Features:

• Purpose: Amplify Auction Power to improve ICX Auction Yield shares.

• Activation: Achieved by locking DXN tokens in the DXN Staking Vault.

• No Burn Mechanism:

  • Unlike ICX multipliers, DXN tokens are not burned when increasing multipliers. The full amount of DXN staked can be unstaked.

• Weekly Maintenance:

  • Participants must stake an additional 10% of the principal DXN amount weekly.

  • Failure to meet this requirement results in a 2x reduction in the multiplier.

Multiplier Tiers:

Tier	Multiplier	DXN Required	Lock Period
2x	2x	250 DXN	2 Weeks
4x	4x	500 DXN	2 Weeks
6x	6x	750 DXN	2 Weeks
8x	8x	1,000 DXN	2 Weeks
10x	10x	1,250 DXN	2 Weeks

Lock Period:

• DXN staked is locked for 2 weeks after unstaking - vesting linearly.

Penalty for Early Unlocks:

• If participants penalty unlock DXN tokens before the 2-week lock period ends:

  • Remaining DXN tokens are permanently staked in the DXN Protocol, removing them from circulation.

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Comparison of ICX and DXN Multiplier Requirements

Aspect	ICX Multiplier	DXN Multiplier
Weekly Maintenance	Stake 10% additional ICX	Stake 10% additional DXN
Increase Multiplier	50% of the deposit is burned	No burn
Required Deposit	Based on annual ICX inflation	Fixed DXN amount for each tier
Lock-in Period	Remaining 50% locked for 5 weeks	Locked for 2 weeks
Cap	Maximum multiplier is 10x	Maximum multiplier is 10x

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Impact of the Multiplier System

1. Enhanced Rewards:

   • ICX multipliers increase daily Reflection Yields, while DXN multipliers amplify Auction Power, ensuring competitive and scalable yield generation.

2. Increased Scarcity:

   • The ICX burn mechanism reduces circulating supply, driving token scarcity and value appreciation.

3. Sustained Engagement:

   • Weekly maintenance requirements encourage consistent participation and reinforce the protocol's sustainability.