ICX Vesting Schedules & Interruptions

ICX Vesting Schedules and Deflationary Mechanics

Vesting schedules in the ICX Protocol are designed to promote long-term engagement and prevent sudden token sell-offs, aligning incentives for participants, team members, and marketing efforts. When tokens are unlocked, a balance between liquidity and gradual distribution is maintained.

Vesting Schedules

Action	Liquid	Vested	Vesting Duration
ICX Purchases	10%	90%	14 Days
Reflection Yield	5%	95%	45 Days
Auction Yield	5%	95%	360 Days
Team & Marketing Tokens	5%	95%	12 Months

Redistribution Upon ICX Vesting Interruptions

If a participant interrupts their vesting schedule by selling or transferring unvested tokens prematurely, the unvested portion is redistributed as follows:

• 55% Burned: These tokens are permanently removed from circulation, reducing total supply and enhancing token scarcity.

• 5% Redistributed to ultraLP Stakers: Additional Reflection Yield distributed based on stakers’ Base Reflection Power.

• 20% to DXN Vault: Swapped for DXN and compounded into the DXN Staking Vault, boosting ETH rewards for DXN stakers.

• 20% to Liquidity Pool: Swapped for ETH and added to the ICX/ETH UniV2 liquidity pool, strengthening liquidity and the price floor.

Effects of Redistribution

1. Deflationary Pressure:

   • The burn mechanism creates an ongoing reduction in the circulating supply of ICX tokens.

   • This scarcity effect enhances the value of the remaining tokens over time.

2. Liquidity Growth:

   • Redistribution to the ICX/ETH liquidity pool ensures a growing price floor, providing stability for the protocol.

3. Enhanced Rewards:

   • Redistribution to ultraLP stakers and DXN vault participants incentivizes long-term engagement and ecosystem participation.

Team & Marketing Tokens

The team and marketing tokens are also subject to these vesting schedules and deflationary redistribution mechanics:

• Vesting Period: 12 months with 5% liquid at the start.

• Redistribution Upon Vesting Interruption:

  • 55% Burned: Permanent supply reduction.

  • 5% Reflection Yield Redistribution: Rewarding ultraLP stakers.

  • 20% DXN Vault: Boosting ETH rewards for DXN stakers.

  • 20% Liquidity Pool: Enhancing the ICX/ETH liquidity pool and price floor.

By applying the same vesting and redistribution rules to team and marketing allocations, the ICX Protocol ensures alignment between contributors’ actions and the long-term success of the ecosystem.

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