DBXen is perhaps the most successful project deployed on XEN, and it’s consistently burning XEN on all the chains. Starfish Technologies and Prodigy IT Solutions, the team behind the project, are now launching DBXENFTs with the scope to address XENFT trading volume and XEN deflation (through the DXN token). The new protocol is about to ignite XEN once again and give all DBXeNFT creators a unique piece of art, but through the Power feature, it also takes DXN to another level, creating a dual jet engine powering the entire XEN ecosystem.
The DBXeNFT is based on first principles of crypto and in this spirit, it launches fairly avoiding practices like pre-mining, public or private sales, developer allocations, airdrops, and protocol developer fees. The project’s launch is designed for the public’s benefit, striving to establish a community-driven system devoid of central control or censorship. This fair launch strategy guarantees inclusivity and fairness, fostering robust community backing and trust in the project.
What is DBXen
DBXen is a protocol launched on Polygon on February 16 and later on on other nine chains (Ethereum, BSC, Avalanche, Fantom, Ethereum PoW, Moonbeam, Evmos, Dogechain, and OKX), with the exception of PulseChain. It’s a passive income-generating machine that rewards users with DXN tokens and native coins like ETH, MATIC, AVAX, BNB, etc., depending on the network where the burn took place. It contributes to XEN deflation by incentivizing the reduction of supply. DXN is a token capped at 5,01 million whose distribution is limited to 62 years. It’s slowly minted into existence in daily XEN burn cycles. The first cycle released 10k DXN, and each day the amount of released token drops by 0.2%, which means that every year the supply will be halved until no more will get minted.
DBXen alone burned 30–35% of the total XEN supply on Ethereum, Moonbeam, Avalanche, Ethereum PoW, and Fantom.
DBXen burned so far 5,345,025,000,000 XEN worth $5,012,692.73 USD on Ethereum and accrued 4,907.8781 ETH or $9,178,958.97 USD in fees.
DBXen enjoyed great success burning daily at least 30 billion XEN because of the native coin rewards users seem to appreciate. The price of DBXen went down, creating an opportunity for users to buy the token instead of burning XEN. Every burner of XEN will get an allocation in the X1 chain, and the Starfish/Prodigy team is now launching another use case for DXN.
What are DBXENFTs
While DBXen burns your liquid XEN, DBXENFT is a protocol enhancing the properties of XENFTs that haven’t been redeemed, and the future XEN hasn’t come into existence just yet. Similarly to DBXen, it will reward users with native coin rewards but not with DXN. DXN will find its use case, however, inside the protocol as a power-up method for getting more native coin rewards.
Each DBXeNFT will be a so-called Dual-Balance Crypto Vault NFT (DBCV-NFT) which is a combination of a crypto wallet and the NFT.
“It’s like you’re buying a Picasso painting and you have two ATM machines associated with this painting,” said Razvan Costin, the founder of DBXen.
The artwork is created by WAM – the creators of the award-winning web3 gaming ecosystem with over 2.3M installs.
🤝Joining forces with @DBXen_crypto to collaborate on our #Wampires #Ordinals Collection.— WAM & WAMPIRES (@playWAM) July 20, 2023
Embracing the power of collaboration between communities for an incredible outcome!
Who is @DBXen_crypto? 👇 pic.twitter.com/lAKcpVWYCO
DBXENFTs are meant to create really powerful incentives for people to burn XEN in the DBXen protocol, trade XENFTs on the secondary market, and buy DXN. The rewards given during the XEN burn in the DBXen contract are not just in the native coins but also in the XN allocation of the X1 chain.
Jack Levin said that everyone who burns XEN through different protocols will get the XN token.
DBXeNFTs incentivize people to power them up with the DXN token to get more Power which decides the number of native coin rewards. In concomitance with DBXen, the protocol ensures that the supply of XEN is constantly reduced and puts in motion the mechanism of yin and yang energy transformation.
The minting and combustion of XEN work as an engine, propelling the economic machine and creating prosperity for its users. DXN, on the other side, is a catalyst for the entire process, as whoever stakes DXN gets more Power to create more rewards for themselves.
How do DBXENFTs work
Users creating XENFT can see an estimated number of XEN possible to get at maturity. Minting XEN a while ago means that the estimated XEN will be greater than if the mint was started today. This is important for estimating the native coin rewards once the XENFT is wrapped into the DBXeNFT.
Wrapping XENFTs costs a fee. There’s a protocol fee for the transaction, and on top of that, there’s also an additional fee for participating in the protocol.
How does the estimated coin reward work?
The value of estimated XEN is converted to estimated coins. Subsequently, a discount is applied based on how many days have passed since the XENFT mint and how many days need to pass until the claim. The formula applies a discount of up to 50% for all those who wrap their XENFT one day before they can claim it. The discount starts halfway through the minting process and keeps increasing until it reaches 50%.
The most important attribute of DBXeNFT is the Power and it’s directly linked to scarcity and value of each wrapped XENFT. The acquired Power doesn’t decrease over time.
Power is distributed in daily cycles where the first cycle reward pool is 10,000 Power and each consecutive cycle of Power supply is increased by 1%
“The Power that is distributed every cycle increases with each cycle – the Power in a DBXeNFT is diluted in proportion with the total Power available,” says the founder Razvan Costin.
At maturity, XEN can be claimed from DBXeNFT because it’s not burned. Power is then reduced to 1 but other factors like the artwork or the staked DXN and the unclaimed native coin remain unaffected.
What users get in the end is something like a tradeable, limited-time crypto account or wallet associated with their NFT. This entire wallet can be sold together with ETH and DXN inside it.
The game theory behind DBXENFTs and DBXen
DXN can be created only by burning batches of XEN in the DBXen protocol. Users have two options to power up DBXENFT. They can either participate in DBXen or buy DXN from the market. This mechanism creates a pull and push of DXN tokens between two protocols, which creates strong incentives within them. People who choose to unstake DXN from DBXen to power up their DBXENFTs, at the same time, give more rewards to those who remain staked in DBXen. On the other hand, those who don’t power up their DBXENFTs will get fewer rewards for their XENFTs.
This project makes people burn more XEN and mint and trade more XENFTs increasing their value. The whole XEN should get a boost of energy from this protocol.
Each DBXeNFT is unique, and it elevates the combined power of art and tokens. The selling power of a DBXENFT is:
– the number of unclaimed native coin rewards like ETH, BNB or MATIC etc.
– Power of estimated XEN
– and the number of DXN.
Users who want to get as much Power and as many DXN as possible should look at days with the least number of people getting into the DBXen and DBXeNFT cycles. This can be viewed at xen.pub website or on etherscan and other chain-specific explorers.
The game theory of burning XEN instead of trading one token for another is also a winning concept. In other ecosystems that build around one token without relying on the burn function, one token is always sold for another, which reinforces just one of the two. In XEN, the token is burned for another token and deducted from the total supply, which makes it more disinflationary or deflationary whatsoever. Reduced supply increases demand and the value of XEN, resulting in a positive sum game rather than a competition. It’s a win-win situation for those who choose to play with DBXen or DBXENFTs as well as for those who choose not to play at all and just mint XEN.
DBXENFT is a dual-asset crypto account that can be traded or used as a potent passive income-generating machine. It activates the energy of the global XEN ecosystem and sets in motion the minting and combustion of XEN while going deeper into the underlying network. By using native protocol coins as fees and rewards, it incorporates the base layer into its energy matrix, not allowing it to dissipate. With this setup of these three protocols: XEN, DBXen, and DBXENFTs, the users have a chance to create prosperity for themselves and for the whole lot of holders that won’t directly participate.