NXD Tokenomics

The total supply of NXD depends on the minting activity during the LMP and is capped at 750,000 NXD tokens. This means that there can only be 750,000 NXD ever in existence. Any un-minted NXD tokens will never get minted and won't hit the total supply. Only NXD tokens backed by DXN deposits will get minted, with a limit of 730K.

As the DXN Protocol doesn’t provide for a dev fee, the NXD team gets allocated a 2% dev fee (subject to a 3-month linear vesting period post-LMP) from the total supply to support ongoing developments, further align incentives and cover the development costs going forward.

The total supply is allocated as follows:

• 730,000 NXD available during the LMP.

• 15,000 NXD (based on a 2% floating rate on Total Minted NXD Supply at the end of the LMP) reserved as a team allocation subject to a 3-month linear vesting period post-LMP.

Meaning that, the dev allocation is based on the effective minted supply of NXD tokens, and not as a fixed 2% fee of the Total Available Supply. As an example, if 100,000 NXD tokens are minted, the dev allocation is 2,000 NXD (2% * 100,000).

• 5,000 NXD locked as liquidity in the NXD/DXN UniV2 LP matched with 5,000 DXN provided by the team for liquidity provisioning.