Crafted with Intent: A Deep Dive into IntentX’s Tokenomics

7 min readMay 15, 2024

Introduction

In the over-incentivized world of DeFi, IntentX’s tokenomics stand out as a carefully designed solution that balances sustainability while rewarding active participation.

This article provides a comprehensive overview of the tokenomics underlying IntentX, shedding light on the principles, mechanisms, and strategic initiatives ingrained in its architecture, all working in tandem to maximize value capture.

As the Token Generation Event draws near, this article also covers the finalized INTX tokenomics and allocations.

TL;DR

IntentX’s tokenomics is designed for sustainability and to encourage active participation in the platform.
$INTX, capped at 100M tokens, is a valuable utility token within the IntentX ecosystem, offering real yield.
$INTX token will be a Mantle native token, to align with our stragetic positioning in the Mantle ecosystem.
xINTX, the staked form of $INTX, rewards holders with a share of 85% of the platform’s fees; with boosted rewards based on staking duration.
Dynamic exit penalty systems align long-term stakeholders with the protocol without mandatory token locking.

These systems incentivize long-term staking and reduce sell pressure.
The Dynamic pool ratio increases the value of $xINTX positions for loyal stakers over time.

The $INTX Token

Introduction to $INTX

$INTX, the utility token of IntentX, is the backbone of the platform, operating primarily to capture value and align stakeholders. $INTX is non-inflationary and capped at a maximum supply of 100,000,000 tokens.

The Role of $INTX in the IntentX Ecosystem

Being non-inflationary, $INTX is designed to be valuable and scarce, ensuring that it remains a sought-after asset within and outside the IntentX ecosystem. With this in mind, $INTX plays a pivotal role as a means of earning “real yield” and providing a gateway to various services and features on the platform.

xINTX: The Staking Mechanism

Understanding $xINTX

xINTX represents a staked form of $INTX and is the key value driver to IntentX stakeholders. Holders of xINTX earn a proportionate share of all fees generated by the IntentX platform. Moreover, this reward is “boosted” depending on the staked duration — aligning long-term stakeholders with the protocol.

Notably, IntentX has recently announced its “Serviced Front-End” program. With three live partners (Thena, Core, BeFi), xINTX stakers will also receive a portion of revenues generated by all serviced front-ends in perpetuity.

Staking $INTX to receive xINTX is a straightforward process, similar to any other staking contract.

Goals and Benefits of xINTX Staking

The staking mechanism is designed with specific goals in mind:

Distribute 85% of revenues to IntentX stakeholders ($xINTX Stakers).
Reward long-term stakers without forcing them to lock their tokens for varying periods of time.
Safeguard stakeholders from the potential adverse effects of short-term trading habits.
Governance voting rights (implemented in the future) to decide on critical token and staking-related mechanisms.

This balanced approach ensures that both traders and stakers find value and stability in the ecosystem.

Loyalty Staking Program: Dynamic Fee and Boost

Alignment of Longterm Stakeholders

To truly align long-term stakeholders with the protocol and not force them to lock tokens, IntentX has designed elegant “boost” and “exit penalty” systems.

Loyalty Reward Boosts

Based on how long tokens are staked as $xINTX, users will receive a boost to their revenue over time:

The Loyalty Stake Duration: A period of 16 weeks where revenue boosts are increased linearly over the maturity of your staked position up to 2.5x.
Maximum Boost: The 2.5x value means that if you stake your tokens for the full loyalty duration (16 weeks), the rewards you earn can be multiplied by up to 2.5 times.

These boosts provide a positive incentive for stakeholders to remain staked for long periods of time, taking supply off the market and reducing sell pressure.

Exit Penalty

Early Unstaking Penalty: Early unstaking (prior to 16 weeks) leads to penalties that start as high as 25% and decrease linearly over time. The 25% fee applies if you unstake immediately, and it reduces linearly to 0.5% over the 16-week period.
Flat Redemption Fee: A minimum 1% redemption fee remains for all staked positions at, and beyond, max maturity (16 weeks).

Exit penalties provide a negative incentive for stakeholders to exit early and also boost $INTX backing in the collateral pool, reducing sell pressure and increasing the $INTX:xINTX ratio.

Dynamic Pool Ratio

As mentioned previously, the early unstaking penalty and flat redemption fee go to increasing the dynamic pool ratio, and thus proportionally increase the value of all remaining staked xINTX positions.

What it is: The ratio at which you can exchange xINTX for $INTX.
How it evolves: If someone unstakes early and incurs a penalty, this penalty is added to the pool, effectively increasing the amount of $INTX backing each $xINTX ($INTX:xINTX ratio goes up). The ratio of $INTX:xINTX goes up only over time as the exit fees continue to accumulate.
How values are determined: The more penalties incurred by early unstakers, the better the $INTX to xINTX ratio becomes for loyal stakers. The pool ratio is altered only by the act of redeeming, not depositing.

Thus, long-term stakers of $xINTX can benefit as their position increases in size as measured by $INTX. The longer you stake, the higher the ratio increases. Thus, your proportional share of revenue distributions increases in tandem.

INTX Token Allocation and Release Schedule

INTX has a total fixed supply of 100,000,000 tokens.

Token Generation Event — 8.4%:

Total Tokens: 8,412,500

Private Round: 412,500 // 0% on TGE, vested linearly over 6 months
Private Round Valuation: 40M FDV

Public Round (MobyHQ ICO): 8,000,000 // 100% on TGE

Claimable in staked xINTX to participate and align with the long-term IntentX stakers.

Full details of the TGE and how to participate will be announced in the coming days. Please stay tuned.

Community Incentives — 21%

Total number of tokens: 21,000,000

Release schedule: Over 3 years.

3,000,000 INTX / 3% of this supply is allocated to retroactive airdrop to Open Beta traders and campaign participants. This will be claimed 50% at TGE, and 50% 4 weeks later.

1,000,000 INTX / 1% of this supply is allocated to an additional airdrop to the broader Mantle Ecosystem, details of which will be shared after TGE.

The remaining supply (17,000,000 INTX) will be distributed to incentivize traders on IntentX after TGE.

All trader incentives will be claimable in the staked xINTX form to provide long-term alignment amongst participants.

Treasury — 15%:

Total number of tokens: 14,872,389

Release schedule: No vesting, however, DOES NOT form part of the circulating supply until utilized.

The treasury is reserved for various long-term functions of the project, including:

Liquidity Incentives as DEX bribes.
Strategic treasury swap with SYMM to align long-term interests and benefit the IntentX platform.
A proportion can be staked as xINTX to provide a long-term income stream and build up a war chest.
It may be utilized in marketing, grants programs, partnerships, exchange listings, etc.

The treasury will be managed carefully to ensure the long-term success of the project and to the benefit of xINTX stakers.

Team — 20%:

Total number of tokens: 20,000,000

Release Schedule: Vested linearly over 24 months.

Team tokens will be claimable in staked xINTX to participate in the value creation, fund development, and align the team with the IntentX stakers.

Note: In commitment to the long term growth of IntentX, the core team has agreed to locking their vested xINTX for 12 months from TGE (with option to renew). While participating in revenue distributions and backing ratio appreciation, no team tokens can be unstaked during this period.

Seed Round — 20%:

Total number of tokens: 20,304,000
Private Round Valuation: 12.5 FDV

Release Schedule: Vested linearly over 12 months.

Will be claimable in staked xINTX to participate and align with the long-term IntentX stakers.

Strategic Round — 10%:

Total number of tokens: 10,111,111
Private Round Valuation: 18M FDV

Release Schedule: Vested linearly over 12 months.

Will be claimable in staked xINTX to participate and align with the long-term IntentX stakers.

Advisors — 2.8%:

Total number of tokens: 2,800,000

Release Schedule: Vests linearly over 2 years. 6 months cliff.

Allocated to key advisors on the project.

Seed Liquidity — 2.5%:

Total number of tokens: 2,500,000

Release Schedule: Vested immediately.

Will be used as seed liquidity for CEX listing and DEX.

Release Schedule:

Conclusion

With the imminent TGE, IntentX is ready for its next phase of community growth, engagement, and rewards.

Leveraging the significant value accrual from the IntentX DEX and its serviced front-ends, xINTX stakers are rewarded with sustainable real yield. The xINTX dynamic mechanisms are meticulously designed to align incentives and create a growth-oriented environment for stakeholders.

As IntentX continues to evolve, our commitment to long-term success, sustainability, and community engagement remains steadfast — we look forward to building the future of DeFi with you.