Proposal: Xenon Dapp - 5-10% Buy & Burn DXN from XENFT Claim Fees
TLDR:
Integrate XENON into the DBXEN.org main website to increase adoption and usage
Replace or partially replace the 10% XENON Team Fee with a 5-10% DXN Buy & Burn from each XENFT claim through the XENON Contract
Expected increase of Gwei over the coming years, demand the requirements for Xenians to use Xenon, further adding to the potential of integrating the tool in the above manner for DXN and XEN
Low-effort Optimization for Maximum Results Long Term for $DXN and $XEN
Integrate $XEN Inflation with $DXN Deflation, causing indirect huge $XEN Burning
Increase network effect $XEN by lowering the entry barrier
Gwei UP, Xenon use UP, $DXN burns UP, XEN burn UP
Overview of the Current State of Xenon:
In the below, XENON Team = DBXEN Team and are interchangable for sake of simplicity.
XENON is a protocol that lets users claim their XEN mints without needing any ETH in the wallet. These gasless transactions are possible thanks to Starfish Technologies working as a Relay Server and the Ethereum Gas Station (GSN) providing gas for the transactions.
The cost of the transaction, together with the service fee, is paid back from the sale of the claimed XEN. By Starfish Technologies becoming the Relay Server, the XENON/DBXEN team manages to lower GSN’s 30% fee on each transaction to 20% and effectively charge 10% lower fees on XEN minters.
Cost of Xenon
The cost of using XENON is not tied to the total value of the minted XEN but is rather applied on top of the cost of gas required for the transaction.
- When a XENFT is claimed and the gas fee is calculated, XENON applies a 10% fee that goes to GSN and another 10% that goes to the creators of XENON.
- When the team compared the total cost of a XENON transaction to the total value of XEN from a Xenturion XENFT, it resulted in less than 1%. This 1% may be the ultimate factor in the protocol’s adoption.
Advantages & Disadvantages:
Disadvantages:
- It’s obvious that for each XENFT claim going through the XENON contract, a sale of XEN will need to occur, which exerts downward pressure on the price of XEN.
- The impact of the above on the XEN price depends largely on the price of gas and XEN.
This means that., when gas costs are high and the price of XEN is low, the sale of XEN will have a bigger impact, as a larger part of XEN from the mint will need to be sold to cover the transaction cost. When the price of gas is low and the price of XEN is high, the cost of the service and the total transaction will be minimal. But, if gas is high and XEN price is high as well, price impact will be minimal as well. There's a certain balance.
Advantage:
- Increasing the network effect and network value of XEN by lowering the barrier to entry by solving for gwei increases for XEN claims, allowing more users to enter the XEN ecosystem.
- One of the main objectives of XEN is adoption by providing the lowest barriers to entry, and transactions abstracting away gas are fulfilling this goal by lowering the friction of needing ETH or another native coin.
Proposal for the Future State of Xenon
Integrate the XENON dapp with the DBXEN.org website to increase adoption, visibility and utility.
To solve for the main disadvantage of XENON by causing increased XEN inflation and sell pressure, we propose to add a 5-10% DXN Buy & Burn feature replacing or partially replacing the 10% fee going to the XENON team.
Adding an external buy and burn pressure, directly correlated to the minting of XEN will add fuel to the fire and most likely dramatically improves the burn allocation of XEN per DXN and solves for both XEN and DXN inflation.
- Integrate XENON with DBXENFT's to be able to directly claim mature XEN from the DBXENFT using XENON.
In short, adding a buy/burn DXN % fee to XENON claims:
- Incremental Changes for Maximum Results Long Term for $DXN and $XEN
- DXN Burning adds to XEN Burning due to price appreciation and speculation around DXN, which solves for XEN inflation from XENON Claims
Rough Estimate of Value Creation from the Proposal
Considering that, every XENFT/DBXENFT XEN claim at maturity goes through the Xenon contract over the period of the current Full Max Mint XEN Term.
Rough Formula for $DXN Burn Value:
$ Value Buy & Burn DXN = (5-10% )* (XENFT $ Value at Maturity)
XENFT Value: $30,038,751 (ATL)
XEN Price: $0.00000030 (ATL)
$ Value Buy & Burn DXN = (5-10% )* ($30,038,751)
$ Value Buy & Burn DXN = $1.500.000-$3.000.000
Conclusion:
The proposal would add organic and external buy & burn pressure on DXN as a token and maximizes token value for holders, burners and stakers. In addition, it increases distribution due to speculation of DXN, attracting more players, and increasing XEN burns significantly. XENON can be transformed into a vital tool for adoption of both XEN and DXN allowing for the integration of inflation, deflation and vice versa from both ecosystems, all based on fair crypto principles and decentralization.
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