ECO CYCLE
Last updated
Last updated
Here is an overview of the use cases for GXE, the governance token, and UXE, the utility token.
While not all use cases have been disclosed yet, PROJECT XENO is designed with the philosophy that GXE and UXE will primarily be used for NFT generation, modifying NFT value, and time-related mechanics.
*Some functions that are not described in the whitepaper will be released in future updates.
The burning of UXE and NFTs within PROJECT XENO is an essential part of the ecosystem, ensuring long-term sustainability and value preservation.
UXE consumed through 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 price.
All UXE consumed through various use cases is stored and serves as the source for in-game token pool replenishment. The token pool is replenished every 30 minutes, and players can earn UXE stored in the pool by building a deck with XENO that have EARN capabilities and engaging in battles. The amount of tokens that can be earned depends on the player's Arena Rank, the Earn Lv. of XENO, whether GENESIS is in the deck, 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 earned increases.
In PROJECT XENO, the amount of tokens emitted per day is controlled by the token pool.
The token pool is replenished every 30 minutes, and the token distribution amount changes at the same intervals.
*If the token pool reaches zero, tokens cannot be earned after winning battles. *The amount of UXE replenished in the token pool every 30 minutes may also vary depending on the UXE spent through use cases.
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, a soft peg mechanism has been implemented to maintain balance while allowing for controlled inflation.
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.
