DXG Holders

DXG holders are users who have bought DXG for either speculative purposes, or to take advantage of DXG staking benefits.

All DXG holders want to ensure price appreciation that is organic from protocol usage. DXG offers benefits for fee sharing, trading fee discounts (Maker/Taker only, and only the premium that goes to POL), and accrue veDXG which should be the measurement of how much of a fee discount traders can get.

xDXG:

• A token that is representative of a staked amount of DXG. xDXG stakers are entitled to fee share and other rewards including DXG emissions.

veDXG:

• veDXG is a valueless, untransferable token that exists at a 10:1 ratio of total DXG in circulation. This means that as DXG is burned, the supply of veDXG needs to reduce proportionally. veDXG’s primary purpose is to be used as a voting token from a protocol design perspective

• veDXG can be used from a user and product-centric way by having the veDXG quantity in proportion to the amount of DXG staked (in notional USD terms) compared to total position size to offer discounts on trading fees.

Incentives and Token Utility

• Staking Rewards: Breakdown of rewards from linear DXG issuance and USDC from fees.

• Fee Sharing: Percentage of borrowing, trading, marketplace, and unstaking fees shared with DXG holders.

• Governance Participation: Influence of veDXG on platform decisions and policy changes.

Deflationary Mechanisms

• Token Burns: Circumstances under which DXG tokens are burned, contributing to token scarcity and value appreciation.