xToken: Next Generation of Memecoins
Last updated
Last updated
xToken serves as the trading currency for xNFT collections, with unique features that set it apart. New NFT creation within an xNFT collection requires xTokens, a portion of which are burned during the minting process. xTokens are also used in xNFT trades, with token holders benefiting from burns that occur during both minting and trading activities.
Unlike other NFT fractionalization methods such as ERC-404 or NFTX, which typically inflate token supply as more NFTs enter a collection, Xeal's approach decreases xToken supply as new NFTs are created. This deflationary mechanism aims to align token value with collection growth and trading activity.
xTokens are not limited to a single collection; they can be shared across multiple collections, enabling creators to establish a cohesive token economy spanning various projects. For instance, an artist like Eminem could create multiple album collections, all tradable using a single Eminem-branded xToken on the Xeal platform. This flexibility allows for more complex and interconnected ecosystems within a creator's body of work.
Creative energy serves as the driving force behind Xeal's burn mechanism, which is designed to increase token value. The burn process requires an input of energy, whether in the form of financial investment, attention, or demand. xTokens derive this energy from the creativity of artists and the community.
As people invest in creative works that offer potential utility, it results in the burning of xToken tokens. This symbiotic relationship between artistic innovation and token mechanics creates a self-reinforcing cycle where creative output fuels token burns, potentially leading to an upward trend in token value. By harnessing the power of creativity, Xeal aims to create a sustainable ecosystem where artistic endeavors directly contribute to the token's economic model.
Three variables are considered during NFT creation:
minimumMintPrice: Sets the minimum selling price for an NFT to be accepted into the collection.
mintBurnFee: Prevents creators from buying their own NFTs to mint them, and reduces xToken's circulating supply.
mintProtocolFee: A fee collected by the protocol. This fee is distributed to the xToken holders.
As the community creates and trades more art, the value of xToken may increase.
Three variables are considered during NFT trading:
tradeBurnFee: A fee that is burned, potentially benefiting xToken's price.
tradeLoyaltyFee: Paid to the NFT creator as an incentive and to offset the mint burn fee.
tradeProtocolFee: A fee collected by the protocol. This fee is distributed to the xToken holders.
Xeal supports a fair launch mechanism for xTokens through a launchpad based on a bonding curve. This system automatically deploys the xToken to an Automated Market Maker (AMM) once it reaches a predetermined market cap.
While similar to pump.fun, Xeal's launchpad offers creators more flexibility. Creators can specify the total supply of xTokens, set the initial market cap, and determine the liquidity threshold at which the xToken should be deployed to a decentralized exchange (DEX).
This approach aims to provide a balanced and customizable launch process, allowing creators to tailor the tokenomics to their project's specific needs while maintaining fairness in distribution.
