DBXeNFT Game Theory
Last updated
Last updated
A DBXeNFT can be minted using the DBXeNFT Smart Contract. DBXeNFT will be minted in 24 hour cycles.
DBXeNFT will be minted by users that choose to wrap XENFTs.
The main attribute of a DBXeNFT is Power.
DBXeNFT Power distribution is divided into one day long cycles - the first cycle reward pool being 10,000 Power.
A new Power distribution cycle begins after 24 hours have elapsed since the previous cycle and at least one XENFT wrap has been completed.
However, it is possible to have gap cycles where no new XENFT wrapps occur, resulting in no distribution or unlocking of DBXeNFT power. In such cases, if multiple consecutive gap cycles occur, the distribution will resume once a XENFT wrap is made, and the DBXeNFT Power that would have normally followed will be included.
The DBXeNFT Power supply increases by 1% per cycle and is uncapped. DBXeNFT will reward its holders with native token fees that are accrued every time a new DBXeNFT is minted.
DBXeNFT power can be enhanced if holders stake $DXN. Each staked $DXN will provide an extra DBXeNFT Power of 1%.
There is no limit on how many $DXN can be staked in a DBXeNFT.
where:
XENFT Power = Cycle Power * Estimated XEN in XENFT / Total Estimated XEN in all XENFTs in that Cycle
Cycle Power = the daily power pool which is the protocol established constant contributing towards DBXeNFT Power
*Cycle Power is 10,000 in the first day and increases every Day by 1%
*Estimated XEN in XENFT = the amount of estimated $XEN tokens for the specific XENFT on the day DBXeNFT is minted
*Total XEN in all XENFTs = the estimated $XEN in all the wrapped XENFTs for a specific cycle
DXN Power = XENFT Power * Amount of Staked DXN on DBXeNFT * 1%
In order to wrap a XENFT to mint a DBXeNFT, users pay the transaction gas fee and an additional mandatory Protocol fee, defined below:
ProtocolFee = MAX( (Xen*MAX( 1-0.0011389 * MAX(MaturityDays,0) , 0.5) )/BaseXen), MinCost)
where:
MaturityDays = Days since XENFT was minted - Days until XENFT can be Claimed
Xen = Estimated Xen to be claimed
BaseXen = The floor amount of Xen for 1 Native coin
MinCost = Minimum amount of Native coin to be paid for minting
The DBXeNFT Protocol Fee Cost on different chains are listed bellow:
Ethereum
1,000,000,000
0.2
0.001
Polygon
1,000,000,000
1
0.001
Avalanche
1,000,000,000
1
0.001
Binance
1,000,000,000
0.5
0.001
Ethereum POW
1,000,000,000
1
0.001
Evmos
1,000,000,000
10
0.001
Fantom
1,000,000,000
1
0.001
Moonbeam
1,000,000,000
1
0.001
Base
1,000,000,000
0.1
0.001
Optimism
1,000,000,000
0.1
0.001
Pulsechain
1,000,000,000
10,000,000
10,000
*Note: The above Max Protocol Fee does not include maturity discounts.
97.5% of the amount corresponding to Protocol fee goes towards the reward pool out of which DBXeNFT holders are being rewarded based on their DBXeNFT power. 2.5% of the Protocol fees go to the protocol devs.
The calculation for Protocol Fee is built to apply an additional discount based on the maturity of an XENFT. The max discount is 50% for XENFTs that are almost claimable (closer to maturity, bigger the discount).
In plain words, the Protocol fee calculation used to calculate the fees charged from a user when they perform a wrap operation on DBXeNFT Protocol is determined by multiplying the amount of estimated XEN in the XENFT.
The protocol charges Native coins for every 1 billion Estimated Xen as described in the table above.
If the XENFT is very close to maturity a discount is applied to the cost.
Note: cost discounts apply only for XENFTs that have passed half of the minting term.
Maximum discount that can be achieved is 50%.
All XENFTs can be used to mint DBXeNFT (including the ones that were already claimed). The minimum cost for minting a DBXeNFT is described in the table above, meaning that if the estimated XEN is less than 1 Million users will pay the Min Protocol Fee.
A claimed XENFT will mint a DBXeNFT with a Power of 1.
DBXeNFT power can be increased by staking $DXN. For every 1 $DXN stake, DBXeNFT Power will increase by 1%.
On top of the staking transaction cost there will be an additional protocol fee of 0.001 native coin / $DXN staked for . The protocol fees accrued in the contract and will be used to reward DBXeNFT holders.
As soon as $DXN are staked, the tokens will be locked during the whole cycle that follows (irrespective of whether the cycle is a gap cycle or not) while also starting to generate fees, given new DBXeNFTs are minted.
The staked $DXN tokens that have reached the cycle in which they are unlocked can be unstaked, ending up back into the possession of their owner without any penalty.
The calculation is based on DBXeNFTs Power relative to the Global DBXeNFT Power (the sum of all DBXeNFTs Power) and the fee pool available for distribution in a specific day.
The formula determines one's share of the fee pool by dividing one's DBXeNFT Power by the global power. The resulting fraction represents the proportion of the fee pool that one is entitled to receive. This ensures that the distribution of native coin fees is fair and based on individual contribution.
* by utilizing this calculation, users with higher power will receive a larger portion of the fee pool, reflecting their higher standing within the ecosystem. It incentivizes active participation and rewards users accordingly.
** overall, this calculation plays a crucial role in determining the distribution of native coin fees, promoting fairness and incentivizing user engagement within the ecosystem.
Xen can be claimed from the XENFTs when the XENFT is matured.
If XEN is claimed, the power of DBXeNFT is reduced to minimum (1). The DBXeNFT design, the staked DXN and the unclaimed Native coin remain unaffected.
