Tokenomics
5. Tokenomics
Chapter 6: Tokenomics
π― Purpose of the Token
The xDSN token is the backbone of the ecosystem, enabling decentralized access, incentivizing participation, and aligning stakeholder interests. Itβs designed to:
Facilitate access to premium storage tiers and features
Reward contributors, validators, and referrers
Govern platform decisions via staking and voting
Integrate seamlessly with third-party services
Total Fixed Supply: 1 billion xDSN tokens on the Ethereum Blockchain
πͺ Token Utility
Storage Access
Unlock higher storage tiers, faster retrieval, or priority caching
Governance
Vote on roadmap features, pricing models, and protocol upgrades
Referral Rewards
Earn tokens for onboarding new users or hosting nodes
Staking for Discounts
Stake tokens to receive reduced monthly fees or enhanced performance
Ecosystem Spending
Use tokens to purchase add-ons, bandwidth boosts, or branded extensions
Node Operators
Stake XDSN to purchase an xDSN Node and earn ongoing token rewards for uptime and participation
π Token Distribution
Community Rewards
35%
Continuous issuance via usage/staking
Team & Advisors
20%
12-month cliff, 36-month vesting; locked post-vesting
Foundation Reserve
15%
Strategic partnerships & emergencies
Public Sale
20%
Immediate liquidity with lockups
Liquidity Pool
10%
DEX/CEX listings and price stability
π Deflationary Mechanics
To ensure long-term sustainability and value appreciation:
Burn on Usage: A small % of tokens used for premium storage access (e.g., 2%) are burned
Dynamic Pricing: Token cost adjusts automatically based on real-time network load and demand thresholds
Buyback Programs: Revenue from fiat subscriptions may be used to buy and burn tokens, supporting value retention
π§ Governance Model
Token holders can actively shape the platform through:
Proposal Submission: Suggest new features or integrations
Voting Rights: Weighted by token stake and user reputation (e.g., staking duration, referral performance)
Treasury Oversight: Approve grants, partnerships, and ecosystem funding
π Blockchain & Interoperability
Blockchain: Deployed on Ethereum for scalable throughput and low transaction fees
Smart Contract: Built using a thirdweb ERC-20 contract, audited by Macro Audits
Wallet Security: Critical operations are protected by multi-signature wallets, ensuring decentralized control and enhanced security
EVM-Compatible: Integrates easily with Ethereum-based wallets and dApps
Bridged: Expandable to networks like Solana, Arbitrum, and others
Composable: Usable in DeFi protocols for lending, staking, or liquidity provision (e.g., Aave, Curve, Balancer)
π Launch Strategy
π― Initial DEX Offering (IDO)
Launch via a reputable platform with community whitelisting to ensure fairness, transparency, and priority access for early supporters and node participants.
π οΈ Node Operator Genesis Program
Early allocation of xDSN Node licenses to committed operators. Includes:
Bonus staking rewards
Founding operator reputation badges
Access to exclusive governance roles
π§βπ» Validator Incentive Pool
Dedicated token pool rewarding:
High uptime
Geographic diversity
Active participation in governance proposals
βοΈ Airdrop Campaigns
Targeted airdrops for:
Wallets with verified age/activity
Referrers with node onboarding achievements
Early testers who complete community milestones
π Liquidity Incentives
LP staking bonuses tied to node health:
Operators maintaining >95% uptime receive yield boosts
Dynamic farming pools based on validator performance
π³οΈ Community Voting Events
After IDO, xDSN holders (especially node operators) vote on:
Node expansion strategies
Staking multipliers
Ecosystem partnership priorities
πΌ Developer Grants
Funding for tools enhancing the node ecosystem:
Dashboards for uptime/analytics
UX improvements for deployment
Security plugins for multi-server setups
π Transparency Dashboard
A full-featured real-time dashboard will be launched within 30β60 days of token deployment, providing open access to:
Live node health and uptime statistics
Treasury activity and spending breakdowns
Token burn events and staking participation metrics
For incentivized Node Operators, a secure CLI dashboard will be available at mainnet launch, offering streamlined access to performance insights and staking status
π§ͺ Testnet Token Conversion (tXDSN)
Early contributors who earned tXDSN
tokens during the testnet phase will be eligible to convert them into mainnet XDSN
tokens. This conversion is performance-based and capped to preserve token supply integrity.
For full details on conversion tiers, claim windows, and audit mechanisms, see Chapter 6: Testnet-to-Mainnet Migration.
Last updated