We will introduce GXE, the governance token, and a second token to be issued in the future, the utility token (UXE).
Disclosing all the cases will be a little later, but as the philosophy of PROJECT XENO, GXE and UXE are designed to be necessary for generating NFTs and changing the value of NFTs or in situations involving time.
*Some functions that are not described in the whitepaper will be released in future updates.
Burn UT and NFTs
Burning the UXE and NFTs distributed by PROJECT XENO is a part of the cycle necessary to maintain a healthy eco-cycle and the value in the long term.
UXE consumed in use cases accumulates in a token pool to be burned or used as the capital for the next Earn.
NFTs that lack a balance of supply and demand are stored in an NFT recycling pool and are either burned or recycled.
The supply of UXE issued by PROJECT XENO is unlimited, so the value per token must be maintained.
Therefore, the total amount of tokens circulated on Play-To-Earn is calculated based on the market price in order to stabilize the value.
All UXE that are used in use cases are accumulated and become the source to supply the in-game token pool.
The token pool is added every 4 hours, and users can earn from the accumulated UXE in the token pool by forming XENO with Earn ability and engaging in battles.
The amount of tokens that can be earned depends on the user's Arena Rank, the EarnLv of XENO, whether GENESIS is in the formation, and the remaining balance of the token pool.
When the token pool balance is sufficient, the probability of Earn and the amount of tokens that can be obtained increases.
<Impact of the Token Pool on the Game>
In PROJECT XENO, the amount of tokens emitted per day is controlled by the token pool.
The token pool is refilled every 4 hours and the token emission probability also changes at the same time.
The state of the token pool and the time until getting refilled can be checked on the game's main page.
Note: If the token pool reaches 0, tokens will not be obtainable after winning battles. Note: The amount of token pool getting refilled every 4 hours may also vary depending on the amount of UT spent in the use case.
Increasing rewards in a cycle where supply and demand are not in balance can induce excessive inflation.
Excessive inflation can also rapidly reduce the value of each token and make it difficult to maintain a long-term eco-cycle.
Therefore, we use soft pegs as a mechanism to generate moderate inflation while maintaining balance.
In the case of a simple linkage to the market price, it is possible that the response to sudden price fluctuations will be inadequate, so the soft peg also monitors the latest volatility rate in addition to the market price.