Supply Dynamics
Last updated
Last updated
The $DXP token is built with a fixed supply of 21 million to maintain scarcity and long-term value. This supply is split into two key segments: 60% (12.6 million) is allocated for emission supply, while the remaining 40% (8.4 million) is reserved for vesting, gradually distributed to the team, advisors, and early investors based on set schedules. Once deployed, no additional tokens are minted at random, every new token enters circulation strictly through a controlled, block-by-block emission mechanism.
The emission process is governed by a halving cycle every four years, ensuring that the rate of token issuance gradually decreases over time. This design creates a deflationary dynamic in which the inflation rate naturally diminishes as the network matures.
Beyond scheduled emissions, the protocol includes a recycling system to manage supply efficiently. Tokens collected from fees or early withdrawals are burned and then returned into the unissued supply through reminting. This method helps maintain balance, stabilising the supply while minimising volatility without relying on permanent burns. The emission supply is gradually introduced into circulation and allocated to liquidity providers, farm owners, yield yodas, and verifiers, with distributions based on time and performance metrics. For example, if a liquidity provider withdraws early, any $DXP rewards they’ve earned are sent back to the unissued pool, ensuring the token remains scarce and sustainable.
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 timing may vary, based on the amount of $DXP recycled during the period. 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. Token distribution is based by time and performance metrics. Liquidity providers earn rewards in $DXP, with the flexibility to convert them back into the original yield asset they supplied to the Farm. To do so, an equivalent amount of $DXP must be returned, which is then added back to the unissued supply to support rewards for new participants. This mechanism not only sustains the protocol’s reward cycle but also ensures that early participation is incentivised through time-based factors.
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, Liquidity Pools (25^%): Distributed gradually over six months to two years to ensure market stability. 2. Public Sales (4^%): Structured to encourage broad community participation and engagement. 3. Ecosystem Fund(4^%): Allocated with a 48 month vesting schedule to incentivise ongoing contributions from developers and ecosystem participants. 4. Airdrops (2^%): Designed to reward and recognise key community builders. 5. Existing LP Locked (5^%): Acknowledging early liquidity providers. These mechanisms work together to establish a game-theoretic incentive model that aligns the interests of all stakeholders. By allocating up to 90% of yield strategy returns to liquidity providers and implementing a deflationary, self-regulating supply model, $DXP solidifies its position as the core asset powering participation and sustaining long-term value within the Dexponent ecosystem.
Total Supply in Circulation including the Vested & Emissioned supply over time:
