A Short Analysis of DXN Economics
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Last updated
Immutable Game Theory
The DBXEN team successfully launched the DXN cryptocurrency through a novel auction-based distribution mechanism that has proven to be robust in both bull and bear market environments. Beyond its primary role in distribution, the mechanism behind DXN's token distribution offers significant utility as an Income Layer for dApp integrations. This can be accomplished by integrating the Return on Investment (ROI) of the DXN token into an economic framework and hyperstructure network.
In the current days of decentralized finance (defi), it is rare to encounter an undervalued cryptocurrency that is immutable, decentralized in its token distribution, pays sustainable passive income derived from its tokenomics and has a thriving community supporting it. We’re happy to be a part of that and congratulate the DBXEN team in achieving this successfully through a challenging market environment. FPOC-Based Distribution Model
The DXN Protocol[1] rewards participants with DXN tokens through daily auction cycles, which started a year ago with a 10,000 token reward pool that decreases by 0.2% each cycle, aimed at depleting the ~5.01 million total supply over roughly 62 years[3]. Rewards are contingent on daily XEN burns, with potential interruptions in distribution if no burns occur, while users pay a Native Protocol Fee (in ETH) for burning XEN, structured to decrease with larger burns to encourage efficiency and replenish the reward pool.
DXN rewards and the fees collected are proportionally distributed based on each user’s contribution to XEN burns, incentivizing active participation. Claiming these rewards allows users to collect DXN tokens, which can be restaked to earn further fees from daily auctions in ETH, thus aligning long-term engagement incentives within the protocol.
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