⚫Tokenomics
LENX Tokenomics
Overview
XD Token
Utility: Rewards participation, secures liquidity, and facilitates protocol engagement.
Supply: Initial supply of 64 million tokens, with a maximum supply of 100 million. A planned emission schedule allows for the minting of an additional 36 million tokens over three years, subject to halving events.
Distribution: Allocated through participation in the protocol’s lending, borrowing, and liquidity provision activities.
veXD Token (Under development)
Utility: Represents voting power in governance decisions, influencing protocol direction, financial parameters, and reward distributions.
Acquisition: Obtained by locking XD tokens for a period ranging from 1 week up to 208 weeks (4 years), with voting power decaying linearly over time.
Features: Non-transferable, ensuring long-term commitment to protocol governance.
Governance and Rewards
Mechanism: veXD token holders vote on key governance decisions, including protocol updates, integration of new assets, and adjustments to financial parameters.
Rewards System: XD tokens are distributed to participants for various activities within the ecosystem, with veXD holders having a say in the allocation and distribution strategy.
Emission Schedule
Initial Phase: 36 million XD tokens are minted as rewards over the first three years, following a halving mechanism to sustain long-term engagement.
Post-Emission: Transition towards a model supported by protocol revenue, with governance flexibility to adjust supply cap up to 200 million tokens.
Sustainability and Future Growth
Revenue-Driven Model: After the initial emission period, the protocol aims to generate sustainable revenue streams from multichain lending, collateralized debt positions, and yield-generating activities, reducing reliance on token emissions.
Flexibility: Governance may decide to adjust the maximum token supply in response to the protocol’s needs and ecosystem growth.
This tokenomic framework supports the LENX Protocol’s mission to enhance Bitcoin liquidity and utility in the DeFi ecosystem, balancing incentives for participation with robust governance mechanisms.
Governance Decentralization
Governance Power: veXD tokens are at the heart of the LENX governance model. They are obtained by locking XD tokens for a period, which can range from one week to four years. The amount of veXD received is proportional to the amount of XD locked and the duration of the lock.
Decentralization Through Voting: veXD token holders have the right to vote on proposals that shape the protocol's future, such as protocol upgrades, integration of new features or assets, adjustments in financial parameters, and the allocation of the protocol's treasury or rewards. This voting mechanism ensures that the direction of the LENX Protocol is determined by its community.
Non-Transferable: veXD tokens are non-transferable, a design choice that ties governance power to long-term participation and commitment to the protocol's success. This discourages short-term speculation on governance tokens and ensures that those who have a stake in the protocol's future are the ones guiding its development.
Linear Decay of Voting Power: The voting power of veXD tokens decays linearly over time until the lock period ends, encouraging continuous engagement and re-locking of XD tokens to maintain governance influence. This system rewards long-term commitment and ongoing participation in governance.
When was XD launched?
XD, the LENX Protocol Token was launched on Fjord Foundry on 1/7/2024.
Where do I get XD?
You can swap XD on Uniswap.
Other Links
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