X2Y2 Tokenomics 2.0

0xDC43
March 30th, 2022

As X2Y2 enters the next stage of its journey, we are very excited to present a new tokenomic model which will bring real value to our loyal stakeholders and the whole NFT community. We pride ourselves on our agility and responsive approach to development and believe it’s an essential part of success in the fast-moving world of blockchain. So, time for a change!

As previously announced we will be sunsetting the X2Y2 airdrop. As you can see below, claims leveled off a number of weeks ago, and tokens remaining in the airdrop contract (~92,000,000 X2Y2) no longer realistically make up part of the circulating supply. We will be renouncing the contract and burning the remaining tokens.

X2Y2 airdrop claims over time. Source: Dune Analytics / @zxsasha
X2Y2 airdrop claims over time. Source: Dune Analytics / @zxsasha

Our initial model of giving users listing rewards had certain advantages, but upon analysis and with the experience of the last six weeks, we have decided to shake things up. The problems were as follows:

  • It encouraged the listing of many items which had a low realistic chance of being sold; this doesn’t help the NFT market in general.
  • Tweaking the listing rewards algorithm consumed a lot of important dev time with no perfect result being possible.
  • Sellers want to sell their NFTs, and buyers want to buy them! This is the central point of the wonderful world of NFTs and we were not rewarding it properly.

X2Y2 will be moving to a scheme of trading rewards to encourage the listing and trading of quality NFTs, and to reward our platform users for their loyalty. Each day, 624,902 X2Y2 tokens will be distributed to NFT sellers and buyers to thank them for using our platform. Fees collected from sellers in the form of wETH will be distributed proportionally to X2Y2 stakers.

The Platform Fee will be fair, reasonable, yet highly competitive - striking the perfect balance to drive maximum platform interest and volume.

We know we have a fantastic platform, and we know people will love it once they try it. So, for a very limited promotional period of one month, Platform Fees will be 0%; there will be ZERO fees to sell an NFT on X2Y2.

What about my gas fees? - We’ve thought of that, too. Each day 624,902 X2Y2 had been allocated to listing rewards; since we are doing away with those, during the promotional period sellers will have their gas fees refunded with X2Y2 tokens.

In doing this, we make it a truly zero-fee experience for our users, as well as bring new token holders into the community to share in the future growth of the project.

I’m an existing holder - will that increase inflation? - No; the tokens to be used for gas refunds were already allocated, were already being given out (as listing rewards), were already in the circulating supply, and are simply being repurposed in a way that will benefit everyone much more. There will be no additional inflation due to this change.

I stake X2Y2, won’t this reduce my wETH rewards? - Currently, daily wETH rewards are running at less than 0.01%; for most stakers, this is an insignificant amount. Part of the grand design behind our Tokenomics 2.0 is to greatly increase platform usage, in turn greatly increasing the wETH rewards we will be able to return to our loyal stakers once the normal fee schedule resumes. More users, more usage, more rewards; more users, more usage... you get the idea! It’s a virtuous cycle of utility.

Fee Schedule

  • 1st April to 30th April:
    • Platform Fees: 0%
    • Gas Fees: Reimbursed in X2Y2
  • 1st May onwards:
    • Platform Fees: 0.5%
    • Platform Fees: Reimbursed in X2Y2

Wrapping it Up

We’re super excited to be sharing this with you and hope you like the new direction. We’re convinced it’s going to be of immense benefit to all members of the X2Y2 ecosystem; NFT collectors and traders, X2Y2 stakers, and the amazing artists themselves. Read on for some more technical details, or feel free to ask any questions on our friendly Discord server.


Following are some additional details about exactly how our rewards system will work:

Gas Rebates during the Promotional Period

Gas Rebates during the Promotional Period
Gas Rebates during the Promotional Period

Where:

  • a = User’s gas expense
  • b = Total gas expense of all daily trades
  • K1 = 624,902 X2Y2 allocated for rebates

Fee Rebates after the Promotional Period

Gas and Fee Rebates after the Promotional Period
Gas and Fee Rebates after the Promotional Period

Where:

  • a = User’s Platform Fee expense
  • b = Total Platform Fee expense of all daily trades
  • K2 = 624,902 X2Y2 allocated for rebates

Notes

  • The gas rebate for a single NFT will be limited to 5% of its sale price.
  • The gas price will be fixed at 50 gwei.
  • Sales from other platforms or smart contracts will not be included.
  • If your sale is from an aggregator, please confirm with them how the rebates will be handled. Sales from Gem/Genie will be included.
Arweave TX
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