Summary
Putting all the pieces together
The Dexible Proof of Trade protocol is a new way of minting and valuing tokens on multiple chains. It is based on the idea that the value of the $DXBL token should be determined by the trading volume on the Dexible platform, its community and usage, rather than by just supply and demand in the open market.
When users trade on the Dexible platform, they will be minting $DXBL tokens through the Proof of Trade protocol. For each $DXBL token in the user's wallet, a 0.05% discount will be applied to the Dexible fee, up to a 50% discount and a minimum of 4 bps. The fees collected by the protocol will be split between the Dexible treasury for further development of the protocol and the Community Vault, which the $DXBL token holders can burn their tokens for.
As trading occurs through the protocol, the Community Vault will grow in asset value. Depending on the discounts applied to trades, value will grow at a rate of between 2-4bps per transaction or $200-$400 per million traded. $DXBL token holders will be able to burn their minted tokens for a portion of the Community Vault, delivered in either Wrapped Natives or Stables (users choice).
The more volume through the protocol, the higher the difficulty of minting new $DXBL tokens. The higher the minting difficulty, the tighter the supply of tokens. This means that as trading activity through the protocol increases, the Net Asset Value (NAV) of each $DXBL token will also increase.
The Minting Rate, which is calculated on a volume-based curve and simplified into Volume Window buckets, dictates how much volume is required to mint a full $DXBL token. As the Minting Rate increases, more volume is required to mint a $DXBL token. Traders who were able to mint tokens at a more favorable Minting Rate will be able to redeem their $DXBL tokens for a higher NAV than they minted at.
This framework provides the community with a token that is valued in line with protocol volumes. It is a token that is not influenced by market sentiment, buy/sell pressure or other supply/demand tokenomics. $DXBL should trade on the open market at or slightly above what it can be redeemed for (NAV). Token holders are rewarded the higher volume goes and incentivized if volume declines. All while providing discount utility and community value.
Last modified 1mo ago