DBXen($DXN): all you need to know
The purpose of this article is to present in a simple manner what is DXN and what it stands for.
$DBXen is an ERC20 token built on top of $XEN token.
Why $DXN:
Let’s see the response of the founder:
“DXN is meant to become the token for a market where:
- Holders alone establish it’s Economic value
- Market value is a common effort of the holders community (without any central point that can manipulate it)Economic value is the value that someone places on an economic good (asset) based on the benefit that they derive from owning that asset. The benefit is a perception, it can be the pride of holding something, the utility the asset provides (ability to exchange with other actors for goods or services), the willingness to belong to a community, etc.
- The economic value is often estimated based on the person’s willingness to pay for the asset, typically measured in units of currency. The economic is NOT the market value, which is the market price for an asset which can be higher or lower than the economic value that any particular person puts on a good.
DXN was designed to be distributed fairly to people through a fully decentralized DeFi mechanics that adhere 100% to the First Principles of Crypto:
- self custody,
- consensus,
- no pre mints,
- no private allocations,
- no way to manipulate the Economic value using centralized market making and price as a marketing tool.The main goal of DXN is to create a fully decentralized market where the community dictates and establishes the market value and empowers DXN holders to establish the economic value without any means of centralized manipulation.” ~ Razvan Costin
$DXN is a cryptocurrency with a capped supply of approximately 5 million tokens, designed to be minted over a span of 62 years. This approach ensures a gradual release into the market, promoting long-term sustainability and value.
To simplify and clarify the information regarding the minting of $DXN by burning $XEN and its DeFi system, let’s break it down into more accessible language and a step-by-step explanation:
How to Obtain $DXN by Burning $XEN: A Simple Guide.
Obtaining $DXN, a cryptocurrency with a unique DeFi (Decentralized Finance) system, involves a process called “burning” another cryptocurrency called $XEN. Here’s what you need to know, explained as simply as possible.
What Does “Burning $XEN” Mean?
Burning $XEN means permanently removing some of your $XEN tokens from circulation. This action is a crucial step if you want to receive $DXN tokens. When you burn $XEN, you’re also securing a place for yourself in the allocation of XN tokens, the native token of the upcoming X1 blockchain.
How to Mint $DXN?
Minting $DXN is not like buying it directly from an exchange. Instead, you mint (or create) $DXN by participating in a unique process on the DBXen Protocol. Here’s how it works:
- Burning $XEN: To start minting $DXN, you need to burn $XEN tokens on the DBXen Protocol. This action is your ticket to receive $DXN.
- 24-Hour Cycles: The protocol operates in 24-hour cycles. Each cycle has a predetermined pool of $DXN tokens that will be distributed among participants. For example, the first cycle might have a pool of 10,000 $DXN tokens.
- Participation and Distribution: If you participate in the burning process during a cycle, you become eligible to receive a portion of that cycle’s $DXN pool. The amount of $DXN you receive depends on how much $XEN you burned compared to others.
- Example: If ten people participate in a cycle by burning $XEN, the total pool of $DXN tokens for that cycle will be split among those ten people when the cycle ends. The split is not equal but based on the proportion of $XEN each person burned. If you burned ten times more $XEN than another participant, you would receive ten times more $DXN from the pool.
Tokenomics:
Lets burn $XEN thorugh DBXen Website
To effectively guide through the process of burning $XEN through the DBXen website, let’s create a simplified, step-by-step walkthrough based on the information provided. This guide is intended for educational purposes and outlines the process of converting $XEN into $DXN tokens by participating in the burning mechanism on the official DBXen platform.
This is the official link if you want to do step by step with me: https://dbxen.org/
When you jump on the website it might look pretty complicated but I will demystify each part of it.
Step 1: Acquiring $XEN
Before engaging in the burn process, you need to own some $XEN tokens. Here’s how you can acquire them:
- Purchase $XEN: For simplicity, you can buy $XEN tokens on Uniswap. This method is straightforward and allows you to quickly obtain $XEN without waiting. In this example, $XEN was purchased for 0.5 Matic per token.
- Mint $XEN (Alternative Option): $XEN can also be minted through a time-based algorithm. Minting involves a waiting period that can range from a few days to hundreds of days before you can claim your tokens. This option is for those willing to engage more deeply with the $XEN ecosystem but requires patience.
(I bought some $XEN)
Step 2: Understanding the Burn Process
The burn process on the DBXen website involves several important details:
- Batches: The burn process is organized in batches, with each batch representing 2.5 million $XEN. You need at least 2.5 million $XEN to burn one batch. In a single transaction, you can burn up to 10,000 batches.
- Protocol Fee: Burning $XEN incurs a protocol fee. This fee supports the DBXen Protocol’s operations and is distributed to users who have staked $DXN in the protocol at the end of each cycle. Staking $DXN allows you to receive a share of the protocol fees collected.
- Staking $DXN: You can either buy $DXN and stake it in the smart contract or mint $DXN, which will be automatically staked after the 24-hour cycle concludes.
- Discounts for Large Burns: To incentivize the burning of large amounts of $XEN, the DBXen Protocol offers discounts on the protocol fee. The discount scales with the amount burned: a maximum batch burn (10,000 batches) grants a 50% discount on the protocol fee, a 5,000 batch burn provides a 25% discount, and so on. The principle is: the more you burn, the less you pay in protocol fees.
Below is a diagram illustrating the complete workflow of the DBXen Protocol:
Having covered the theoretical aspects, let’s proceed with the practical application — engaging in the actual burning process.
I plan to burn 10 batches, which is equivalent to 25 million $XEN. This action is initiated from the left side of the website interface.
The website will display the amount of $XEN required for the burn and the associated protocol fee. Once the burn is successfully executed, I become eligible to participate in the current cycle for $DXN allocation.
Step 3: Staking $DXN
After acquiring some $DXN tokens from Uniswap, the next step involves staking them. To do this:
- Access the Staking Section: Navigate to the right side of the website and locate the staking section towards the bottom. This area provides the interface for staking your $DXN tokens.
2. Approval and Staking: Before staking, you must approve the transaction, allowing the protocol to interact with your $DXN tokens. Following approval, proceed to stake all your $DXN tokens.
By staking $DXN, you are eligible to earn a share of the protocol fees collected. Additionally, if you participated in burning $XEN, you will receive staked $DXN as a reward at the end of the cycle, further increasing your stake in the protocol.
Step 4: Observing Your Statistics
The DBXen Protocol provides various windows to monitor your activities and rewards:
Rewards Window: On the lower left side of the website, you can find a window dedicated to displaying your rewards. It’s important to note that you do not need to claim your $DXN rewards if you prefer them to be automatically staked, simplifying the process.
Fees Collected: The upper right side of the website showcases the fees you’ve collected in the blockchain’s native token. The protocol encourages users to collect these funds only when necessary, emphasizing the security of keeping funds within the smart contract for extended periods, such as over a year.
Current $DXN Pool: This window displays the current pool of $DXN, which decreases by 0.2% each cycle. Monitoring this window helps you understand the dynamics of the $DXN supply and its distribution.
DXNBurner Smart Contract: Not directly related to the DBXen Protocol, this smart contract plays a crucial role in the ecosystem. It collects the native token of the blockchain (e.g., $ETH, $MATIC) and $XEN, trades them on Uniswap for $DXN, and then burns the acquired $DXN. This process contributes to the deflationary mechanism of $DXN.
The DBXen Protocol is operational across 13 different blockchain networks, offering users the flexibility to choose their preferred blockchain for participation. This wide availability ensures that you can engage with the protocol on a platform that best suits your requirements.
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