TXL Staking Details

4 min readApr 28, 2021

A couple of weeks ago, we announced that we would offer an innovative TXL Staking option. We are currently preparing everything so we can go live with this soon. In this post, we wanted to share some more details about the concept.

If you haven’t done so yet, join the Tixl journey here: Telegram Announcement Channel, Telegram Group, and Twitter.

Project Advantages of Staking

We explained what staking is in our recent Medium post. In short, you put your tokens into a Smart Contract and get token rewards for doing so.

As a project, this is a good way of providing an additional incentive for token holders to hold the token. It gives the token one more use case.

Staking Risks to a Project

Staking can be a big risk for projects if they have the wrong reward mechanism in place. Many projects have died simply due to offering staking.

Why? Because the rewards need to come from somewhere. If they come out of the project’s treasury, this can massively increase the circulating supply and limit the project’s resources to generate funding through token sales.

Tixl’s Solution to Staking

With Tixl being a long-term project, we do not want to double the circulating supply purely by giving out staking rewards, this would be counter-productive. Initially, investors would be happy because there’s Staking. However, with the circulating supply continuing to increase, this would hurt the Tixl project in the mid-to-long term.

To get the best mix of short-term and long-term benefits for both our investors and the project, we will carry out the following:

We will create a Staking Pool into which the TXL rewards are paid — which will be distributed to TXL Stakers later. In that pool, we are not simply putting in millions of TXL from our treasury, thereby increasing the circulating supply. Always thinking the entrepreneurial way, we came up with a better solution: The TXL rewards will come from the open market, directly reducing the sell- pressure. This can be achieved by establishing smart business models around the TXL token.

Business Model 1 — Within Tixl’s Cross-Chain Bridge

As you know, we are licensing our Cross-Chain Bridge to other projects. This is done free of charge for the projects. After having measured the willingness of traders to pay fees, we introduced a bridge fee and will adjust this to be around $5 or 0.2% of bridged volume. These fees are totally acceptable and fair because there is no need to bridge — and you would only spend them to save fees on Binance Smart Chain, to put your tokens in a farm, or to gain other advantages through being on another network. With those advantages, you should recoup the fees you have paid in a matter of hours or days (obviously depending on what you do; when you just hodl, there is no need to bridge).

The fees are paid in the token being bridged. In the background, we will swap those tokens to TXL. This has two advantages: the swap transaction creates buy pressure in itself plus we get funds for the Staking Pool (without increasing the Circulating Supply or taking funds from the treasury, respectively).

Take the example of Tixl’s Bridge Launch so far. More than $4m was bridged over a couple of days. This alone would have resulted in $8k worth of fees, increasing daily.

Many projects have already asked whether they can use the bridge, including projects that have a much higher holder amount and daily volume. This is without marketing the bridge proactively. The first projects are already using the bridge — meaning the first rewards for TXL Stakers are already being collected!

The more projects that use the bridge, the higher the staking rewards and APRs/APYs achieved.

Business Model 2-X

There will be many other use cases going forward that can include TXL business models. The Fees/TXL earned from these can also be used for filling up the Staking Pool.

Starting Period with additional TXL treasury injection

As the Staking Pool fills with bridge fees (and other fees in the future), the rewards will grow. It will take time to build these fees so, to make Staking attractive for the early adopters, we will inject some TXL from our treasury during the launch period.

Launch Date

The plan is to have Tixl Staking happen in the Tixl Wallet and on Tixl’s Autobahn Network. We need some time to prepare for this. When this is finalized, we will announce the launch date.

A Stake in the Future

As with everything we do, we have the longevity and well-being of the project top of mind. We appreciate the desire for, and excitement around, staking and we will deliver it in a way that ensures everyone - including investors and the project - will benefit not only in the beginning but into the future.

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