Jax.Network tokenomics update
by Maryna Trifonova, Head of Content at Jax.Network
With the public sale successfully going on DEXs, we would like to pay attention to some peculiarities of our tokenomics. Read the article to learn more about tokenomics updates, WJXN price evaluation, and other important details.
First of all, we would like to point out that this new tokenomics benefits the user since the number of pre-mined tokens can only decrease. So, even if the price goes down to some levels where $16 mln value is not reached at the OpEx wallet level, we do not plan to issue more tokens. In other words, with our new tokenomics, the total WJXN circulating supply can only go down.
What has changed in our tokenomics?
As per our initial version of the tokenomics, we had 3 phases and 26 rounds per phase. For each phase, the price started at $0.77 and was incrementally increasing up to $0.995 at the end of phase 3, round 26. For phase 1, 2 mln WJXN tokens were available, 4 mln during phase 2, and 10 mln for phase 3.
Due to the reasons outlined here, we decided to update the tokenomics. We decided to cancel all phases and rounds, as well as the fixed price, which was linked to it. We also moved away from Bounce, the platform where the token sale was initially launched. WJXN tokens are listed on Uniswap and PancakeSwap now. The starting price was set at $0.97, i.e. the last price on Bounce.
We have decided to trust the market in evaluating WJXN tokens, therefore opting in for a flexible price. This market price on reputable DEXs such as Uniswap and PancakeSwap allows us to ultimately reduce the volume of pre-mine. It also allows users to track the WJXN token price in real-time and compare it with $3.66, i.e. the fair value that we calculated for this token.
The OpEx wallet stores 16 million WJXN. We have a hard cap of $16 mln, while our soft cap of $1 mln was reached during our pre-sale. At the end of the pre-sale, every WJXN will be swapped 1:1 for JXN, our native coin.
What about coin burning?
Why will a variable price bring more value for the hodler? Since our hard cap is $16 mln, we will burn all extra tokens. We plan to hold burning ceremonies every Wednesday during the course of the token sale starting immediately after our CoinMarketCap and CoinGecko listings, expected within a few weeks from now. And if the last 30-day average token price times the total coins held in the OpEx wallet exceeds a total value of $16 mln, we will burn a maximum of 500,000 tokens during the weekly burning event to reduce the total $ value held in the OpEx wallet. At the end of the token sale, if the 30-day moving average token price is superior to $3.66, then all remaining tokens that are not burnt will be burnt one last time, up to 11.63 mln from the OpEx wallet in total. It will leave the wallet with a maximum number of tokens to 4.37 mln.
All tokens in our tokenomics that were percentage-based allocation, such as company reserves and team allocation will be also burnt to the following proportion, if the token price is equal or above $3.66: 11.63mln/40mln*100=29%. So, the team has an initial allocation of 9.45% of the total circulation. In case the 30-day moving average price of the token before MainNet launch is equal or above $3.66, then 29% of the 3.780 mln will be burnt. Ultimately, this means that we will reduce the pre-mine volume and increase the potential value of the coin.
Otherwise, if at the end of the token sale the 30-day average price is, for instance, $2.5, then a bit more than 7.5 mln coins will be burnt from the OpEx wallet. 0.907 mln coins will be burnt from the team stack, and about 2.344 mln from the company reserves stack. For all of those who have bought the coin at a fixed price, nothing changes. In total, in this example, almost 10 mln out of 40 mln initial pre-mine will be burnt.
Generally speaking, nothing has changed on the protocol level. We only modified our tokenomics to reflect the new order of the token sale, which is carried out on DEXs now. The number of coins will only keep decreasing, as we do not intend to raise more than $16 mln.
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