Tokenomics

The $DXP token is the native utility token of the protocol. The total supply of $DXP tokens is fixed at 21 Million and will be distributed over a period of 20 years. Tokens are released weekly, with a halving cycle occurring approximately every 4 years. This halving is designed to control inflation rate and is adjusted based on the amount of $DXP that is recycled within the system, ensuring a balanced token emission over time.

Every 15 seconds, 1 $DXP token is minted when a block is generated. Each block contains all protocol related transactions, including those that pertain to generated rewards and metadata corresponding to yield distribution and performance metrics. The minted $DXP tokens are then distributed according to predetermined allocation ratios set by the protocol. These ratios define how rewards are distributed among stakeholders within the system, such as subnets, LPs and validators, Additionally, the halving mechanism is important for the long term sustainability of tokenomics. As the token supply decreases over the time, the scarcity of $DXP will likely increase, potentially leading to an increase in its value. This deflationary feature makes sure that early stakeholders of the network are rewarded bigger during the initial phases of distribution.