XYO Dracarys: Up to ~3.2 Billion of XYO Will Be Burned

Dear Geohackers,

I’ve been hanging out lately in the XYO Geohacker Forum, specifically the XYO Improvement Proposal (XIPs) Board.

Within XIP-3: XYO Cryptoeconomics 2.0 (“The Lime Paper”) we’ve been having a great dialogue about updating The Lime Paper.

The Lime Paper is still in Draft status because we need to test various models before committing to it forever (by creating a smart contract for it).

We intend to test this because, in the world of blockchain, when you create a smart contract that runs, it runs… forever — even if there are bugs. We saw the downsides of this with the Ethereum DAO Attack (https://www.coindesk.com/understanding-dao-hack-journalists).

Even though the model we’re building concerns itself with XYO’s Cryptoeconomics, we have decided to take a careful approach to this, and treat it as if one is testing a new software algorithm.

So we’ve written a paper for it. But instead of a white paper, we had a little fun with it. We chose the color lime, because, well, lime green is the best color out there. And because it’s Scott’s favorite color, of course.

Anyway, here’s the deal: About a week ago, on May 15, we submitted a new proposed model for the XYO sold from the Cryptoeconomic Reserve. We posted the proposed items and posted everywhere inviting feedback. And the feedback came in. And it was incredible. Our team reviewed every single post to help architect the new model that we call, “XYO Dracarys”.

With that, I’m pleased to submit an updated version of our Lime Paper: Here’s the link: https://docs.xyo.network/XYO-Lime-Paper.pdf

Here are the highlights of Dracarys:

Item #1: Up to ~3.2 Billion of XYO Will Be Burned. Dracarys Style.

Token burning events are typically very good news for current HODL’ers.

It reduces supply; which, in theory, should help create a healthier token economy for XYO. This is important because Geodropping XYO in COIN to create a large mesh-network of Sentinels is a key piece of our current near-term strategy. And it’s working. Really, really well.

Here’s the details:

• For every 1 XYO Sold, 1 XYO from the Cryptoeconomic Reserve will be burned until 50% of the Crypto-economic Reserve is burned (Up to 3,250,034,273.430 XYO). Initially, as can be seen from the forum update, this was 3,420,106,660.15; however, this was not correct because it included the FHR Pool Amount.

The model is inspired by the Binance BNB token burn model.

Every quarter, we will destroy BNB based on the trading volume on our
crypto-to-crypto platform until we destroy 50% of all the BNB. All transactions will be on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.

• Thus, after subtracting the FHR Pool (340,144,773.44) the correct figure is this: Up to 3,250,034,273.430 will be burned.
• Burning will take place either monthly or quarterly depending on how much we can streamline the process. We will know after our first XYO Token Burn. We’re targeting the first burn to be the end of June or first week of July. We will put out a news release an update before the first burn.
• The XYO burned will be sent into an Ethereum Wallet Address (the “Dracarys Address”). We’ll provide this address once created so that the community can observe it and celebrate the burn event. It will be sent to a smart contract and burned.

Item #2: XYO Cryptoeconomic Reserve Price

• The price of XYO Sold From Cryptoeconomic Reserve will no longer start at $0.01 (as planned in the first draft of the Lime Paper). It will be sold at an average exchange price of XYO at the time of purchase (real-time).
• This applies retroactively to the group of ~100 holders who purchased XYO from the Reserve at $0.01. Thus they will receive the quantity of XYO at the new pricing.

Item #3: 100% of XYO Sold Comes with 180-Day Minimum of Network Staking

• Instead of the planned 12-month Staking, we will move to 180-day minimum staking.
• 180 days should serve just as effective as 12-months to ensure that the purchasers of XYO are not purchasing just to speculate in the short-term.
• Each purchaser will be given their XYO during their phone call with XYO’s VIP Concierge Team. Each purchaser will be taught how to use their XYO for staking, COIN Geodrops and more.
• Staking XYO in the network via our Network Staking (validating data) is what secures the network; enabling validated data. — Network Staked XYO can then be used in the COIN App for additional rewards (more on this coming soon).
• This includes paying to set up your own Geodrops in COIN; a feature that facilitates anyone to set up their own Geodrops). It was used at Ethereal and Consensus! We used it to Geodrop Digital Asset Representations of T-shirts around the event, which then could be claimed via QR Code!

Item #4: Repurchasing XYO

• Each week between 5–15% of proceeds of XYO sold from the Cryptoeconomic Reserve will be used to purchase XYO on exchanges.
• We’ll be providing the Ethereum Wallet Address of the pool of ETH, which will be used to purchase XYO on exchanges. Therefore, the community can observe this event!
• The ETH will be deployed and purchased on a regular basis (meaning daily).

Item #5: FHR Wallet Address

• The XYO to be distributed to the FHR will put in a separate wallet address and will be distributed to the FHR so that the community can monitor it. (We’re awaiting a new Coinbase Custody Wallet Address for this).
• Timeline: On or before December 1, 2019, the XYO will begin being distributed to the FHR members. We are still determining the basis and the amount (i.e. monthly, etc.). This will proceed for a period of 5 years until all of the XYO in the FHR pool is distributed.
• The XYO will be distributed on a pro-rata basis, meaning the amount of XYO you receive is based on the amount of XYO you originally purchased and still hold.

Dracarys!

Reminder: This is still in DRAFT Mode. We began testing this model late last night. The results thus far have been great. We will keep the community updated throughout.

We’ll also be sending out a release when our first Token Burn Event will take place.

We will also post the wallet addresses involved and label them on Etherscan for easy monitoring for our community. Specifically these wallet addresses:

1. Dracarys Wallet (XYO to be burned)
2. The XYO Repurchase Pool Wallet Address
3. The XYO FHR Wallet Address

If you have any feedback or comments, please do not hesitate to submit them! You can post them in our XIP: https://geohacker.xyo.network/t/status-draft-xip-3-xyo-cryptoeconomics-2-0-the-lime-paper/2653/16

In addition to this, look for an updated Roadmap and a sneak peek at upcoming COIN Features soon!

Screw it, we’re doing it!

Data Ergo Sum,

Scott Scheper

Co-founder, XYO