Tokenomics

$DXP: The Protocol Utility Token

The Dexponent Protocol’s tokenomics is built around its native utility token, $DXP, which is the foundation of the protocol's incentives, governance, and overall ecosystem. $DXP is an ERC-20 token that is compatible with popular DeFi platforms such as Uniswap, AAVE, and LIDO, ensuring its usability across the broader blockchain landscape. With a fixed total supply of 21 million tokens, $DXP’s distribution is split between an emission supply (60%) and a vested supply (40%), ensuring that new tokens are minted gradually through a controlled, block-by-block mechanism with scheduled halving, while early investors and team members receive their allocations over defined vesting periods.

At the heart of the protocol’s reward system, all returns are exclusively paid in $DXP. Liquidity providers not only earn immediate incentives and bonus rewards (determined by dynamic market data) upon depositing funds, but also benefit from a system where tokens returned during early withdrawals are recycled back into the unissued supply—helping to preserve scarcity and support long-term value. In parallel, staked $DXP (vDXP) empowers token holders to participate in decentralised governance and secure exclusive privileges, creating a self-reinforcing loop that aligns participation with protocol evolution.

By combining precise emissions control, deflationary recycling, and a unified rewards mechanism, $DXP stands as a robust and interoperable foundation that fuels innovation and ensures predictable, risk-adjusted returns throughout the network.