In little over 100 days after the XEN Crypto launch, Jack Levin and his foundation created XENFTs and are about to launch the Staking XENFTs. At the same time, the preliminary design of the NEX reflection token was released to the public to gather public opinion and improvement suggestions. We’ve already covered the reflection token that Mr. Levin talked about at the beginning; here, we’ll cover the updated design of NEX and the economic mechanics.
What is a reflection token?
What is NEX
NEX is a reflection token that is allocated by a smart contract to all the users participating in the daily distribution rounds and to all those who burned XEN to create XENFTs or Staking XENFTs. The NEX supply is limited to 100 million, and the distribution period is 5 years. The allocation will be highest at the beginning and decrease by 1% every day, so those who get in early will get more NEX than those who participate later. The users will then need to choose if they want to mint NEX directly into their wallet or stake it to get yield from the NEX token trading fees, unstaking penalties, and the XEN burn.
80% of the total 100 million NEX supply will be distributed in daily auctions, and 20% is dedicated to claimable bonus mints.
Here’s the whole picture of the NEXonomics.
How does the NEX daily distribution work?
NEX has a daily allocation pool, and users can tap into it by burning XEN. The distribution is pro rata, meaning that when two users, one with 1B and the other with 2B XEN, burn the tokens, the one who had 1B will get ⅓ and the other will get ⅔ of the entire daily pool allocation of 10,000 NEX.
It’s worth considering that it may not always be advantageous to take part in a round, and it may make more sense to wait until the next day even if the total allocation is smaller. It all depends on the quantity of participants, their burn, and the time of day. There are many moving parts when it comes to choosing the best strategy for collecting the most NEX with the XEN someone has at their disposal.
What kinds of assets are accepted in the NEX claim?
NEX relies on the burn function. There already are smart contracts implementing it, like Limited and Apex XENFTs and Staking XENFTs. Regular XEN burns and Collector class XENFT burns are also eligible for NEX distribution.