DXN Staking Vault (DSV)
The value proposition of the NXD Protocol is inherently tied to the return on investment (ROI) of the DXN Protocol, which is utilized as the income-layer for the DXN Hyperstructure. The NXD token represents a deflationary share of the profitability of the DXN Protocol of which the ROI is captured through the NXD token. If participants are bullish on DXN, that means they’re exponentially bullish on NXD, which functions as a derivative of that.
The NXD token is continuously burned through its buy-back-and-burn program while enhancing the ROI of the underlying DXN Protocol by taking DXN from the circulating supply. This dynamic results in a continuous flywheel of deflation of which the NXD token is its representation of value. An important aspect of NXD is that its tokenomics and deflationary infrastructure is tuned in such a way that it increasingly benefits NXD minters over DXN holders over time. This dynamic is specifically bolstered by its rising Price Floor in DXN.
The DXN Staking Vault utilizes the economics of compounding and effectuates a deflationary force to the NXD cryptocurrency in order to increase its price floor, while simultaneously enhancing the yield distribution per staked DXN for the NXD Protocol. The NXD Protocol executes several compound, burn & yield strategies by distributing the daily ETH rewards earned through the DXN Staking Vault.
The daily ETH rewards are distributed as follows:
50% burns NXD
30% compounds DXN into the DSV
15% ETH yield distribution to the NXD Staking Vault (NSV)
5% burns DXN
At its core, the DXN Staking Vault operates as an automated vault that compounds its returns on a daily basis and of which its profit shares are deflationary from the start and denominated in NXD.
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