Supply Dynamics
Last updated
Last updated
The $DXP token has been architected with a fixed total supply of 21 million tokens to ensure scarcity and long-term value. This total supply is divided into two key segments: 60% (12.6 million tokens) is allocated as the emission supply, and 40% (8.4 million tokens) is reserved for vesting—distributed over predetermined schedules to team members, advisors, and early investors. Post-deployment, no additional tokens are minted arbitrarily; rather, new tokens are released strictly through a controlled, block-by-block emission mechanism.
The total supply of $DXP is capped at 21 million tokens and this supply is divided into two primary categories: Emission supply and Vested supply.
Of the total 21 Million, 60^% of the supply, equating to 12.6^ million $DXP will be minted every block, forming both the circulating and unissued supply. Initially, 1 $DXP token is minted every block (approximately every 20 seconds), with the rate halving every four years. The exact schedule of halving's may vary, based on the volume of $DXP recycled within the protocol. By Default, newly minted tokens initially enter the unissued supply pool. This pool is then distributed among key stakeholders, including Liquidity Providers (LPs), Farm Owners, Yield Yodas, and Verifiers, following predefined allocation parameters. The protocol incorporates a recycling mechanism whereby $DXP used for fee payments or returned rewards is reintroduced into the unissued supply. This approach avoids inflationary pressures and mitigates market volatility without relying on token burning. Incentive and Recycling Framework Rewards in $DXP are dynamically allocated based on performance and time based factors. LPs receive $DXP rewards proportional to their contributions and have the option to reinvest their rewards or exchange them for the underlying assets supplied to the Farms. To facilitate this, LPs must return an equivalent amount of $DXP, which is then added back to the unissued supply, ensuring a balanced and continuous reward distribution model. The recycling of $DXP improves the protocol's ability to manage the circulating supply, helping to reduce excess inflation and promote sustainable token value growth over time. Recycling $DXP helps the protocol control the supply, reducing inflation and supporting steady growth in token value over time.This system combines reducing supply with real use to create a strong, clear economic model that aligns incentives throughout the ecosystem.
The vested supply, which is 40% of the total supply (equivalent to 8.4 Million $DXP), is pre minted and strategically allocated to ensure ecosystem growth and stability. It is allocated as: 1. Founding Team, Investors, Advisors(25^%): To ensure market stability and prevent manipulation, tokens are disbursed over specific schedules, 6 months for investors, 3 years for team members and 2 years for advisors. 2. Public Sales (4^%): Allocated for public token sales & promoting community participation and engagement. 3. Ecosystem Fund(4^%): Designed to incentivise developers and contributors to build innovative solutions within the protocol. Ecosystem funds will be vested for over a period of 48 months. 4. Airdrops (2^%): Incentivising for community builders. 5. Existing LP Locked (5^%): Rewarding existing liquidity providers for their trust in the protocol as well ecosystem circulation. The $DXP incentive mechanism is designed with a "game-theoretical" approach to maximise returns for participants while maintaining network stability. The protocol’s recycling and allocation mechanisms ensure that $DXP remains in constant circulation without introducing inflationary risks. The tokenomics framework is carefully designed to balance rewards. The use of time weighted and performance based reward distribution ensures fairness while keeping $DXP’s value stable. By focusing on controlled token releases and recycling mechanisms, the Dexponent Protocol avoids inflation and creates a secure and rewarding system for all participants, an economic model that aligns with the evolving demands of the DeFi landscape.
Total Supply in Circulation including the Vested & Emissioned supply over time:
