xTDX/voTDX
xTDX
Users will be able to stake TurboDEX with a minimum unlock period of 2 weeks and in turn will receive xTDX, a liquid and transferable staking token.
One unit of xTDX represents a single vote in governance, as well as a share of a pooled group of assets that will grow over time as it is supplemented with a share of revenue and token emissions. These represent rewards for those willing to bond their TDX for a longer time to support the Protocol and participate in governance. xTDX can then be re-staked or used to back the insurance fund, both of which will be rewarded according to Protocol needs.
voTDX - A note
voTDX can be thought of as a user score for boosts to voting share and rights to certain rewards within the TurboDEX ecosystem. It will be allocated for a number of activities including but not limited to: Holding xTDX in voTDX Boosting or Insurance Staking Using TDX to pay for Trading fees and accrued crypto fee baskets
By normalizing a unit of account for governance and rewards, the Protocol will be able to facilitate equitable distribution of power according to commitment signaled by holdings or by participation in Protocol operations. voTDX can be gathered in a number of key ways:
Boosting
Boosting is designed to achieve several goals:
Encourage long term staking of TDX.
Increase user participation in governance.
Benefit those with long term perspective over those seeking to dominate governance with short term capital.
A few key details about boosting:
Pledged xTDX will increase user score.
Users can access their xTDX at any point but their voTDX will set to zero if any xTDX are unpledged (more xTDX can be added at any time).
Each xTDX pledged will earn 0.02277 voTDX per hour up to a maximum score of 100 voNSP per xTDX. In effect this means it will take 6 months to reach a maximum score.
This boosting mechanism will increase users participation in the ecosystem, chiefly increasing shares of:
Emissions and Fees
Voting
Boost ranges from 1x to 2.5x and will be calculated as follows:
Insurance Staking
For those willing to take more risk, insurance staking offers a chance to act as a backstop to the insurance fund in return for a quicker route to a boosted voTDX score. xTDX staked to back insurance will be:
Eligible for an immediate 2.5x voTDX boost (as if staked in boosting for 6 months).
Eligible to participate in Liquidations as a liquidator, but also to receive a proportion of Protocol liquidation revenue.
In return xTDX tokens will have a minimum lockup of 3 weeks and up to 50% of holdings will be eligible for liquidation in the event of the insurance fund being drained.
Fee based voTDX
Trading fees spent on the Protocol will also be eligible for voTDX as an indication of ecosystem participation. These will be registered in two ways, using TDX to pay trading fees and purchasing a basket of cryptocurrency fees with TDX.
Using TDX to pay trading fees (at a discount) and gain voting power will entail the following:
When a trade is executed, the taker pays the required trading fee in TDX.
The TDX is burned and the user receives 50 voTDX. The spent TDX is effectively converted to voTDX, with an expiry of 3 months.
Using TDX to buying crypto baskets and gain voting power will entail the following:
The Protocol offers baskets of cryptocurrencies for sale in auctions. These coins come from Protocol revenue.
TDX is the only accepted payment for these baskets.
Members bid on these baskets. At the end of the auction, the winners receive the coins, their TDX payments are burned, and they also receive voTDX. The spent TDX is effectively converted to voTDX for a period of 3 months.
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