🪙GDXEN

The role and function of GDXEN.

GDXEN is the core of the XEN Garbage Dump and possesses multiple unique features and functionalities that provide various benefits to users.

GDXEN Token Output

The GDXEN token output follows a distinctive mechanism where users participate in daily GDXEN auctions by burning XEN and receiving $XN airdrops. Each auction cycle lasts 24 hours, and the initial reward pool contains 20,000 GDXEN tokens. The reward pool gradually decays by approximately 0.4% in each cycle, resulting in a gradual reduction of GDXEN output.

GDXEN Token Utility

Holders of GDXEN tokens can enjoy multiple benefits, including receiving ETH rewards, participating in DAO governance, and participating in Burn to earn to earn more profits.

Additionally, GDXEN plays a crucial role in the DAO governance process, enabling token holders to participate in decision-making by voting on proposals, parameter settings, and other project-related matters.

Staking GDXEN

If you acquire GDXEN by burning XEN in the auction, there's no need to stake them manually. They will be staked automatically and start generating passive income for you.

However, if you obtain GDXEN through the secondary market or other means, you'll need to manually stake them in the protocol, but please be aware of a 2-round locking period. In the first round, these GDXEN will be locked, and they won't generate any income for you. After the second round, they will still remain locked but will begin generating income for you going forward, until you decide to withdraw them. The locking for these GDXEN will be released starting from the third round, and you'll be able to withdraw them.

Burning XEN Protocol Fee

In the GDXEN protocol, users need to pay gas fees for transactions and an additional protocol fee to burn XEN. The protocol fee calculation is as follows:

$$P=G*(1−0.00005*N)*N * A * D$$

Where：

• P is the protocol fee.

• G is a fixed coefficient of 1000000000000000 (the amount of Gas consumed in executing transactions on Polygon).

• N is the number of batches of XEN burned. Each batch contains a certain amount of XEN, of which one-thousandth of XEN is burned into XEC.

• A is an amplifier designed to balance protocol fees across different chains to prevent excessively low protocol fee rewards on chains where $XEN has lower value.

• D is the protocol fee multiplier that increases due to a decrease in health. The calculation method is described in the Health section.

Blockchain	A	Max burn batch protocol fee
Ethereum	2	10 ETH
Polygon	100	~
Binance	1	5 BNB
PulseChain	1000000	5000000 PLS
Avalanche	5	25 AVAX
Ethereum PoW	4	20 ETHW
Moonbeam	60	300 GLMR
Evmos	80	400 Evmos
Fantom	50	250 FTM
Dogechain	2000	10000 DOGE
OKT	1	5 OKT
Optimism	0.7	3.5 ETH
Base	0.009	0.045 ETH

This formula incentivizes users to burn more XEN in a single transaction, as the more batches they burn, the larger the discount on the protocol fee. When users burn a significant amount of XEN in a single transaction, they receive a certain fee discount. The highest discount can reach 50%, requiring burning 10,000 batches (the more batches burned, the higher the discount).

The protocol fee goes into the reward pool, from which GDXEN token holders can earn rewards based on their accumulated GDXEN.

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GDXEN Reward Distribution

The distribution of GDXEN rewards is based on the amount of XEN burned by users in each cycle. The reward calculation formula for each user in a cycle is as follows:

$$URC=TCR×UBN/TBN$$

Where：

• URC is the number of rewards received by a user in a cycle.

• TCR is the total reward amount in a cycle.

• UBN is the number of batches burned by a user in a cycle.

• TBN is the total number of batches burned by all users in a cycle.

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Health

Maintaining a 100% healthiness is crucial as it impacts two key aspects: firstly, it determines whether you can claim all protocol fee rewards, and secondly, it reduces your protocol fees when burning XEN to bid on GDXEN.

Healthiness decreases with each round, and the healthiness of each address is calculated individually. It decreases once after each round, starting from the first time you burn XEN to bid on GDXEN.

To restore healthiness, you need to burn XEC. For more details, please refer to the XEC section.

Formula for Healthiness Decrease:

$$H = H_0 * (1/e^{(k*t^a)})$$

Where：

• H is the current healthiness.

• H_0 is the initial healthiness.

• e is a constant, equal to 1.02.

• k is a constant, equal to 2.

• a is a constant, equal to 1.

• t is the duration of the project (in days).

Formula for Increasing Protocol Fees due to Healthiness Decrease:

$$D = (H_0 + H_0 - H)/ H_0$$

Where:

• D is the multiplier for increasing protocol fees.

• H_0 is the initial healthiness.

• H is the current healthiness.

With the aforementioned design, GDXEN aims to create a fair, transparent, and predictable token economics system, ensuring that all users have a fair chance to obtain GDXEN and benefit from its functionalities.