Fee-on-Transfer 5% (FoT)
Cryptocurrency tokens featuring transfer fees incorporate a predetermined fee structure activated during a non-whitelisted transfer. Upon the non-whitelisted transfer or sale of NXD tokens, 5% of the token’s value is automatically allocated as a transfer fee to the NXD Protocol.
The Fee-on-Transfer (FoT) policy within the NXD Protocol targets transactions excluding specific whitelisted activities, such as buys from the NXD/DXN Uni pair and interactions within the NXD Staking Vault.
This strategic imposition aims to provide a significant compounding effect to the protocol’s deflationary nature while encouraging token accumulation, with the fee structure serving several key objectives:
Value Preservation: By imposing fees on select transactions, the protocol discourages early exits and enhances liquidity, addressing the risk of value drainage.
Deflationary Influence: A portion of NXD involved in these transactions is directly burned, systematically decreasing the token’s supply.
ROI Enhancement: A fraction of the transaction fees enriches the DXN Staking Vault, compounding the protocol’s intrinsic value.
From its inception, the NXD/DXN UniV2 LP comes with permanently locked liquidity, provided by the team, ensuring that the base pair liquidity structure remains unchanged indefinitely. Transactions involving the sale of NXD within this locked LP and any non-whitelisted NXD transfers incur a 5% FoT, allocated as follows:
2.0% contributes to NXD burning, elevating the price floor, improving scarcity and the earnings per NXD.
1.5% is reinvested into the DXN Staking Vault improving the ROI and DXN scarcity.
1.0% enhances liquidity by adding DXN/NXD to the NXD/DXN UniV2 Locked LP.
0.5% is designated as a Dev Fee to finance future developments.
The NXD Staking Vault, along with future staking vaults for NXD, are exempt from FoT, highlighting the protocol’s commitment to fostering a supportive and growth-oriented ecosystem for its stakeholders.
This whitelisting strategy extends to:
Transactions of participants buying NXD.
Transfers to and from the NXD Staking Vault.
NXD ERC20 contract’s transfers to the Tax Recipient contract.
Transfers involving the Tax Recipient contract sending NXD back to the LP.
Whitelisting of the Q 0.2% ETH Fee to the NXD Protocol designated to grow the base pair NXD/DXN UniV2 LP, boost the ETH rewards for NXD and fuel future burns of NXD and DXN.
Transactions related to the vesting contract for the development fee.
NXD LP Community whitelisted contract delivered during the LMP to add liquidity to the base pair NXD/DXN UniV2 LP.
This carefully designed FoT framework yields multifaceted benefits for the NXD ecosystem, significantly enhancing the NXD price floor, liquidity, and token scarcity, while also amplifying the ROI for stakeholders within the DXN Staking Vault.
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