Introduction to NXD Protocol
Last updated
Last updated
The NXD Protocol introduces the NXD token, a hyper-deflationary cryptocurrency designed to act as a deflationary derivative of the DXN Protocol.
Deflationary Tokenomics & Price Floor: Utilizing an automated vault system, it aims to increase its value by employing strategies that burn NXD tokens, including a Fee on Transfer mechanism and Locked Liquidity to boost the price floor. This enhances the protocol's ROI by reducing the supply of NXD tokens and increasing their baseline price, mirroring share buyback strategies of listed companies to enhance shareholder value.
Deflationary Derivative of DXN: NXD's connection with the DXN Protocol signifies that an optimistic outlook on DXN translates to a stronger belief in NXD's potential, given its role as a derivative. The protocol's tokenomics are structured to benefit NXD minters by leveraging deflationary mechanisms, including a buy-back-and-burn program, which incrementally elevates NXD's value over DXN and improves the ROI per NXD token.
Increasing the Intrinsic Value of NXD: Value levers within the NXD Protocol, such as ETH income through DXN staking and Fee-on-Transfer mechanisms, aim to prevent value leakage and ensure a sustainable income stream. These measures also include enhancing liquidity through community LPs and utilizing trading volumes to further increase the DXN Price Floor.
Rising Floor Price: A key feature of NXD is its perpetually increasing price floor, achieved through a combination of capped supply, locked liquidity, and deflationary tokenomics. This creates a favorable imbalance between NXD and DXN, positioning NXD as a growing store of value within the DXN ecosystem and paving the way for future dApp development.
Importantly, the NXD Protocol operates without extracting dev fees from the ETH revenue streams, ensuring that all generated value from staked DXN directly benefit its participants through compounding yield strategies, yield sharing, and deflationary LP technology.
