XenBurner is a cutting-edge protocol built on the BASE network, designed to strengthen the XEN ecosystem through an advanced deflationary mechanism. Version 0.2 introduces an NFT system called XLOCK, a time-based amplifier mechanic, and an improved reward structure, creating a sustainable economic model that benefits both short- and long-term participants.

Key Components

XenBurner v0.2 consists of two main smart contracts:

1. XBurnMinter:
   The core contract is responsible for burning XEN tokens, minting XBURN tokens, tracking user statistics, and managing the swap mechanism.

2. XBurnNFT (XLOCK):
   An ERC-721 contract representing time-locked burn positions as transferable NFTs, featuring dynamically generated on-chain SVG artwork.

Burn Mechanism and Tokenomics

Token Distribution Model

• Base Ratio: 100,000 XEN = 1 XBURN

• Initial Supply: 1,000,000 XBURN (allocated to liquidity)

• Supply Dynamics: Deflationary for both XEN and XBURN via systematic burning

Burn Split Mechanism

When users burn XEN tokens:

• 80% is directly burned via the XEN contract’s burn function

• 20% is stored in the XenBurner contract for future swap operations

Amplifier System

The Amplifier is a time-based multiplier that rewards early participation:

• Starting Value: 3000 on Day 1

• Decay Rate: Decreases by 1 each day

• Minimum Value: 1 (reached after 2999 days)

• Formula:
  CurrentAmplifier = MAX(AMP_START - daysSinceLaunch, AMP_END)

Time Preference Model

Users can lock their positions for various durations:

• Minimum Term: 1 day

• Maximum Term: 3650 days (~10 years)

• Time Bonus: Calculated as a percentage of the 365-day term

Reward Calculation

XBURN rewards are determined by a formula incorporating three key factors:

BaseAmount = XENBurned / BASE_RATIO TermPercentage = (termDays * 100) / 365 AmpPercentage = (amplifierSnapshot * 100) / AMP_START Bonus = (BaseAmount * TermPercentage * AmpPercentage) / 10000 TotalReward = BaseAmount + Bonus

This reward system ensures a balanced model where:

• More XEN burned increases the base reward linearly

• Longer lock terms increase rewards up to 100% (at 365 days)

• Earlier participation (higher amplifier) boosts rewards up to 100% (at 3000 AMP)

• The maximum possible bonus is 100% (doubling the base amount)

XLOCK NFT System

NFT Representation

Each burn position is represented as an NFT containing:

• Amount of XEN burned

• Lock term and maturity timestamp

• Amplifier value at the time of lock creation

• Base and total reward amounts

• Dynamically generated on-chain SVG artwork

NFT Lifecycle

1. Creation: When a user burns XEN, an NFT is minted to their wallet

2. Maturity: After the lock period ends, the NFT becomes claimable

3. Claim: User receives XBURN rewards, and the NFT is burned

4. Early End: Users may end the lock earl,y but only receive the base reward

Transferability

XLOCK NFTs are transferable until claimed, enabling:

• Trading of locked positions on secondary markets

• Speculation on future rewards based on the term and amplifier value

XBURN - Xen Burner