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Satoshi Nakamoto (the creator of Bitcoin) recognized the importance of sustainable inflation and therefore designed Bitcoin to be disinflationary, i.e., mitigating the risk of runaway inflation.
Today, many token founders and crypto platforms in decentralized finance (DeFi) have failed to recognize this important principle, trading early adoption via increased inflation (or outsized mining rewards) for future price depreciation (from outsized sell pressure). The implication of this flawed approach creates a faux ‘exit-early-before-the-price-crash’ mentality amongst digital asset holders, which exacerbates the very problem Satoshi Nakamoto sought out to solve.
Alas, enter NXN Network and NXN Token.
NXN Network is a DeFi digital platform creating blockchain products that increase economic efficiency, reduce centralized control, and eliminate third party intermediaries and counterparty risk.
Its first product, NXN Token, was created to improve upon the currently available digital Certificate of Deposits, which either create runaway inflation, centralized supply ownership, or otherwise lack appropriate tokenomics.
NXN Token (“NXN”) is a certificate of deposit launching on the BASE blockchain. NXN holders can interact directly with the NXN smart contract by committing their tokens to the blockchain for a period of time.
The currently available digital certificate of deposits lack appropriate inflationary controls, negatively impacting asset prices by increasing pressure on sell-side accounts. The end result is runaway inflation, an adage that rings true across both traditional finance and decentralized finance.
To address the problem of inflationary driven sell-side account pressure, NXN Network utilizes smart contracts to provide flexible time-based investments . Specifically, NXN smart contracts provide a native investment option (titled, “eMining”) that lock up tokens for a period of time and in return those users receive mining rewards. In other words, NXN’s controlled disinflationary tokenomics and deflationary measures encourage long-term adoption by rewarding holders.
NXN aims to solve the problem of runaway inflation by using a shared inflation rate pegged to the time-lock commitment architecture with particular emphasis on the synthetic buy-side and sell-side mechanics that derive from disinflationary time lock controls. For example, NXN disinflationary tokenomics will be augmented by a sell-side smart contract intermediary that caps sell taxes per transaction to insulate money inflows for liquidity pools.
The NXN token supply will inflate at a constant rate annually, though the inflation rate will decline overtime (disinflation), similar to bitcoin. NXN’s disinflation rate will experience a halving every 10 years (also similar to Bitcoin), which results in a declining rate of disinflation (repeated half lives). Please see Mining Calculator for NXN inflation schedule.
NXN will forever incentivize mining rewards without degrading the ecosystem, i.e., NXN will provide competitive yields without rendering the negative price coefficients associated with Bitcoin, such as the monetary, opportunity, clean energy costs associated with bitcoin miners over its life.
NXN Network designed NXN Token to address issues stemming from poor supply side tokenomics. Accordingly, to further curb inflation even in an intentionally declining disinflation supply model, NXN Token employs modern DeFi tokenomics, such as:
Vested timelock mining contracts with early withdrawal options (Reduce inflation);
Early & late “end mining” fees (Reduce inflation + reward miners); and
1% Burn sell tax (Reduce inflation & encourage mining)
In summary, NXN Token was designed to leverage the best of both Bitcoin’s disinflationary mining mechanism and modern DeFi tokenomic protocols, such as mining rewards, 1% burn sell tax, miner splitting / transferring, among other functions, thus resulting in a ‘best-of-all-worlds’ digital asset utility token that is truly unique within the DeFi universe.
NXN is the first high-yield Blockchain Certificate of Deposit (CD). NXN lends value from miners to non-miners as mining reduces liquid supply, leading to positive price coefficients for NXN total outstanding supply (including locked tokens and liquid tokens). In all, NXN’s novel tokenomics module (including the disinflationary controls and deflationary measures) contribute to Pareto efficient economic allocations for the NXN Network and NXN Token.
Users are rewarded to power the network with time lock commitments; they will earn yield upon their share rate, which allows them to receive extra fees that derive from other NXN user’s commitment faults.
Number of units held determines the base share rate. Time-locking NXN for longer commitments (also known as, “eMining”) will yield higher apr bonuses.
eMiners profit from the annual inflation, early & late end miner penalties, and the fees on early withdrawals
NXN conforms to the ERC-20 token standard to maximize interoperability and security.
Interacting with the network with our utility tokens means benefitting the network. Users bring value to the network when they Start, Split, Transfer or Rename their time-lock miners using our utility token- aka the NXN Energy Token
Splitting and transferring of miners allows users to have flexibility with their time lock commitments, such as gifted miners and bequeathed miners, as well as renaming miners for ease of use based on calendar dates and or certain user life events.
Our utility NFT, which is non-transferable and may be rendered at nominal cost per user, e.g., $1 USD, may be used to interact with NXN miners, which will provide positive utility to the network en masse and further the development of the network.
The NXN utility token, an ERC-20 derivative, serves as a quasi, non-transferable stablecoin pegged to the USD, which derives value solely from NXN’s commercial offerings, such as NXN token and NXN NFTs.
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