The news about XENFT’s launch hasn’t even reached everyone yet, and Jack Levin, the founder of XEN Crypto, is already thinking about the next project he’s going to bring to the community. The XEN reflection token will not only get people to burn more XEN, which will rise its value, but it will also make XENFTs more useful.
When is the launch of the XEN reflection token
At the moment, there aren’t many details about the new reflection token, and Jack Levin hasn’t even released the whitepaper yet. However, there are some important hints that help build the big picture. There’s no specific name for the token, either. The Fair Crypto Foundation founder said that the reflection token will launch in the second quarter of this year and that the whitepaper should come out around Mars. There’s a plan to first build the XENFT staking function and launch it before April, and only once it’s done will the reflection token come out.
What’s the XEN reflection token
The XEN reflection token will pay yield based on protocol activity. It’s called a “reflection token” because it’s supposed to reflect back an action to reinforce an activity, and the activity to reinforce is, in this case, the burning of XEN and also holding on to the new token instead of dumping it on the market.
The token will have a hard cap of 100 million, distributed over 5 years or 60 months, which means that no more than 100 million reflection tokens will ever be created. The distribution will occur once per month based on the users’ XEN burn competition for shares in the total monthly allocation. The emissions will be distributed pro rata, where each participant will get a given percentage of total monthly emissions based on total XEN burned. The reflection token emissions will diminish every month, and that will result in the early burners always getting more shares than the late comers. The early participants are the ones taking the most risk, which is why their rewards are the highest.
Mr. Levin is planning to launch a leaderboard where users will be able to view all the burns and their position in the competition for reflection token allocation. Whoever burns the most XEN and whoever comes in first gets the most of the new tokens.
The reflection token is based on the first principles of crypto which translates into the contract having no admin keys, immutability, supply starting at zero, and fair distribution model set by the XEN Crypto contract.
The distribution phases
Participation in the XEN reflection token distribution is divided into two phases:
- Production or creation phase
- Staking phase
In the production phase, the XEN users are supposed to burn XEN using the Proof of Burn function to receive the new reflection token.
The holders of XENFTs will also get into the distribution because they will get an amplification based on the XENFTs they hold. The Apex category of XENFTs will give a major boost to the yield as the users already burn a lot of XEN to get them. Whoever holds the Xunicorn token will get the highest available amplification on the reflection token yield. The Collector category doesn’t need XEN burning to create a XENFT so their holders will possibly need to burn the future XEN to get the new token.
The staking phase comes into place when the XEN burners already have the right to receive their share and they need to decide if they want to mint the reflection token straight to their wallet or if they want to stake it for more yield.
Those who decide to mint it directly to their wallet will get less of it, and those who decide to stake will receive the yield coming from those who minted and didn’t wait.
Moreover, the reflection token stakers will also get 0.2% of all the trading and transfer fees on that token.
The staking phase is a mechanism to delay gratification to get more yield, while those who leave the network as soon as they mint the reflection token will get penalized with less of this token.
XEN Crypto is the foundation for everything that will be built on top of the first principles. XEN is abundant, and it’s meant to be like cash, while the reflection is like a bond embedding the scarcity and a yield-bearing digital asset. Everyone who has XEN benefits from applications built on top, especially those that burn XEN, like XENFTs and the upcoming reflection token. The reflection token creates an incentive loop for XEN holders to burn the token and mint XENFTs to remain in the ecosystem rather than dumping them on the market right after the mint. It’s once again the transformation of economic power from one state to another, from abundance to scarcity, to create balance within the ecosystem.