Staked $DXP ( $vDXP)
$vDXP is a ERC-20 token derived from staking that maintains a 1:1 pegged with the $DXP. It is accepted by the protocol for delegation and functions similarly to $DXP. By staking $DXP tokens, users mint $vDXP, which unlocks governance rights and revenue sharing capabilities, driving decentralised decision making and protocol sustainability. $vDXP not only serves as a tool for governance but also incentivises participation by offering proportional shares of protocol revenue to its holders.
Overview of $vDXP
Staking and Minting Mechanism
$DXP tokens are staked in smart contracts, which mint an equivalent amount of $vDXP at a 1:1 ratio.
The staking mechanism operates through secure and immutable smart contracts.
$DXP tokens staked for $vDXP remain locked until unstaked, which reduces circulating supply.
Revenue Sharing
$vDXP holders are entitled to a share of the protocol's revenue, distributed proportionally based on their staked amount.
Revenue is derived from transaction fees, yield farming strategies, and protocol operations.
The distribution is done by smart contracts, ensuring fairness and efficiency with the protocol.
Governance Integration $vDXP empowers holders to participate in the protocol's governance by casting votes on key decisions .However, to submit proposals, a holder must possess a minimum threshold of $vDXP.
$vDXP Utility
Community Delegated Farm Spots One of the key utilities of $vDXP lies in enabling the community to allocate exclusive Farm spots to deserving Farm Owners who demonstrate the potential to significantly enhance the ecosystem’s value. Rather than acquiring these spots through a direct payment of $DXP fees, Farm Owners can earn them through the community's delegation of $vDXP for a defined period. This approach promotes a merit-based system, ensuring that only trustworthy and high-caliber contributors are empowered to implement their strategies within the protocol, thereby fostering growth and innovation.
Governance Power The protocol is built with a progressively decentralise its governance model. Initially, governance will be overseen by the core team and large token holders. However, as more tokens are minted and distributed, governance will shift towards a decentralised structure. vDXP holders, as the primary governing participants, will have a major role in deciding critical protocol parameters, including fees, revenue parameters, and even the percentage of stake required for participation. This approach ensures that the community is actively involved in the protocol's governance, which aligns with the protocol’s vision of a fully decentralised ecosystem. Stakeholders can actively participate in governance by proposing and voting on key decisions, including protocol upgrades, new investment strategies and treasury allocations. To align with the protocol’s long term vision, stakeholders must stake $DXP tokens to participate. All decisions are executed through immutable smart contracts, guaranteeing transparency and eliminating the need for manual intervention.
Last updated