In my previous post about Xen I wrote about concepts and tokenomics, today I want to tell you why and how xen is becoming deflationary.
Burning
The first real use case for burn appeared at the end of 2022 with NFTs on the ETH chain. Now on all chains, we can burn xen for nft. But why? Because NFT has classes of rarity and some of them are limited with cap. Most rare nft are Xunicors there are only 100 pieces per chain. For mint we have to burn 10 000 000 000 XEN and set it up for a time period to mint new xens, so at all we got rare nft and our xen back after that mint. Some more details here.
Important to know is that we are already burning ETH for mint xen tokens, that value is combined with the time that we have wait for them.
DBxen
The first project that started after NFT's used proof of burn and after a few weeks we already have the same amount of burn as xenfts and it's running on all 10 chains as well. To mint dbxen we have to burn batches, 1 batch = 2 500 000 XEN. On each batch, we have to pay gas fees to the pool. That gas fees pool is distributed as rewards to stake holders of dbxen.
for example burn 10 batches on BNB looks like this
dbxen is a hard cap project where everyday dbxen tokens are distributed to pull of all participants (burners) on all chains. Daily rewards in new dbxen tokens are disturbed and now for staking them you can earn fees from all the next pools in the next 62 years in the crypto that blockchain you used. For example, if you burn xen on eth you have your % off all distributed dbxen on that day ( this pull is decreasing daily by 0,02% after 62 years no more tokens). If you decide to stay with your dbxen in the protocol you are earning an everyday % of eth fees in a smart contract that people burn xen for new rewards. Dbxen on eth already passes out xenft burns.
So dbxen is hard caped, not really there is another coin XLON which is a meme coin with the same rules of first principles, all have to burn tokens, but not xen, now we have to burn dbxen which means that dbxen is deflationary now. The domino just started and now people are burning dbxen for xlon.
That's not everything in the coming weeks, or months we have new coming projects in an ecosystem like Fenix or Nex. There is some info about them already. And one of the most important in my opinion facts about burning xen is that, we are gonna be qualified for doing it to airdrop X1 tokens, the new L1 blockchain.
First Principles
