Web of Deflationary LP Volume

The NXD Protocol strategically encourages the establishment of Community and External Liquidity Pools outside of the Base Pair being the NXD/DXN UniV2 LP. This approach mirrors successful models like The Grays Currency on Pulsechain (pTGC), where liquidity volume integration plays a pivotal role in facilitating token deflation. The External LP’s, for instance an NXD/ETH UniV2 LP, widen the ecosystem’s reach and integrate seamlessly with NXD’s deflationary model, but with a specific nuance:

FoT is levied on NXD sell transactions and not on NXD buys, fostering an environment that encourages accumulation while still benefiting from deflationary dynamics.

This nuanced approach of selective FoT application, where sell transactions within these additional LPs are subject to fees, serve dual purposes:

• Encourages Holding and Participation: By exempting buy transactions from FoT, NXD lowers the barrier for entry and incentivizes users looking to diversify their DXN portfolio while holding its deflationary counterpart and benefitting from its advantages, broadening the token’s appeal and accessibility.

• Ensures Deflationary Impact from Sells: The application of FoT on sells across this extended network of LPs ensures that each sell transaction contributes to the protocol’s deflationary mechanism, by burning NXD and enhancing the token’s ROI, liquidity and price stability.