> For the complete documentation index, see [llms.txt](https://nxd-protocol-docs.gitbook.io/nxd-protocol-dxn-hyperstructure-initiative/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nxd-protocol-docs.gitbook.io/nxd-protocol-dxn-hyperstructure-initiative/the-nxd-opportunity/dxn-protocol-as-an-income-layer.md).

# DXN Protocol as an Income Layer

In the creation of the NXD token, the development team harnessed multiple mechanisms for generating value within the NXD Protocol. A critical component of successful token economics is the generation and leveraging of a consistent and sustainable flow of income favoring the value of the underlying token, alongside mechanisms designed to minimize value extraction, especially from participants seeking to exit, thereby ensuring benefits accrue to all remaining token holders.

Within the architecture of a hyperstructure, the DXN Protocol, along with its token, is integral, serving as the foundational income layer that supports the ecosystem’s economic framework. The NXD Protocol is engineered as a value preservation tool, offering a deflationary balance to DXN, thereby providing a financial safeguard for both XENians and DBXENians. 

Additionally, the forthcoming [ICX Protocol](https://medium.com/@DXN_Hyperstructure/announcing-icx-protocol-86b7af6b3f16) is set to introduce enhanced yield-generating capabilities to the infrastructure, incorporating deflationary yield farming approaches that expand upon the foundations laid by both NXD and DXN.

<figure><img src="https://2053763458-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fra8q63XAod5ZU0iHFzqI%2Fuploads%2F0Z4vMOAjtDrxQZfxeZt3%2Fimage.png?alt=media&amp;token=400e1521-84c1-43bf-be09-da39c97f9750" alt=""><figcaption></figcaption></figure>