⚡XPIN Network Deposit
Overview
To promote the long-term development and ecosystem construction of XPIN Network, XPIN has introduced an innovative Token Deposit model. Users can earn deposit yields or enhance the Weight of their dNFTs to increase mining rates by depositing $XPIN Tokens into an Incentive Hub.This model aims to encourage deep user participation in XPIN Network, enhance network stability and decentralization, while balancing flexibility and fairness, creating a win-win scenario for dNFT holders, depositors, and Incentive Hub controllers.Through this Deposit model, XPIN Network seeks to build a sustainable AI+DePIN ecosystem, where users can earn yields by supporting network Incentive Hubs and contribute to the network's security and scalability. The following sections provide a detailed introduction to the deposit mechanism, yield distribution, the role of Weight, and the model's fairness and governance mechanisms.
Deposit Mechanism
The core of the Deposit model lies in users contributing to network stability through $XPIN Token deposits, thereby enhancing their earning potential and sharing yields.
Deposit Participant Roles
Depositors: Any user holding $XPIN Tokens can participate in deposits, obtaining corresponding incentives through Flexible or long-term deposit mechanisms.
dNFT Holders: Associate dNFTs with an Incentive Hub to enable automatic deposit of mining outputs, enjoy compound interest yields, and gain Weight enhancements to accelerate mining rates.
Incentive Hub: The core hub providing long-term stability to the XPIN network. By achieving a certain amount of long-term deposits, the Incentive Hub is activated, enabling deposit capabilities and dNFT delegation. It assists depositors in completing deposits while receiving a portion of all depositors' yields as incentives. It also helps delegated dNFTs enhance Weight and initiate automatic reinvestment, achieving compound growth in deposit yields.
Deposit Methods
Flexible Deposit: Deposit any amount of Tokens into an Incentive Hub, with the option to withdraw principal and yields at any time, sharing 20% of the network-wide deposit yields as deposit rewards.
Loyalty Deposit: Deposit any amount of Tokens into an Incentive Hub, with a 4-year lock-up, sharing 80% of the network-wide deposit yields as deposit rewards.
Automatic Reinvestment: Delegate dNFTs to any activated Incentive Hub and enable automatic reinvestment. Mining yields are automatically placed into Flexible Deposit, allowing for compound interest yields.
How to Participate in XPIN Deposit
Launching an Incentive Hub
Initiating an Incentive Hub: The Incentive Hub is initiated by the community and open to all community users. Each community user can participate in the Incentive Hub's construction and yield distribution by long-term locking a certain amount of XPIN Tokens. Yields are distributed proportionally based on the locked amount in the Incentive Hub.
Activating an Incentive Hub: A single Incentive Hub requires a cumulative lock-up of 20,000,000 $XPIN for 4 years. Community users can lock any amount of Tokens to collectively build an Incentive Hub. Once the cumulative locked Tokens reach 20,000,000 $XPIN, the Incentive Hub automatically enters an activated state, allowing it to accept Token deposits and open dNFT delegation.
Incentive Hub Activation Waiting Period: Before the Incentive Hub is activated, all community users participating in its initiation will accrue interest according to Flexible Deposit yields and can withdraw from the Incentive Hub at any time.
Depositing Tokens into an Incentive Hub
Activated Incentive Hubs will provide Loyalty Deposit yields to depositors. Depending on the deposit method and amount, the Incentive Hub's annualized yield rate will fluctuate. The expected APY will be displayed in real-time (not as a yield guarantee), and depositors can choose any Incentive Hub to participate in deposits and yield distribution.
Deposit Yield Distribution
The Deposit model incentivizes Incentive Hubs, miners, and depositors to jointly participate in network construction and ensure network stability through a reasonable yield distribution mechanism.
Total Deposit Yield Output XPIN Network will allocate 10% of the total Token supply (i.e., 100,000,000,000 * 10% = 10,000,000,000) as deposit incentives. The annual output halves each year, continuing for 10 years.
Deposit Methods XPIN offers Loyalty Deposit and Flexible Deposit as two methods to provide incentives to depositors. Regardless of the chosen method, Tokens must be deposited into an Incentive Hub to start earning yields.
Loyalty Deposit: Only available after Incentive Hub activation, the total Loyalty Deposit reward pool is 80% of the overall deposit reward pool, i.e., 10,000,000,000 * 80% = 8,000,000,000. Depositors can choose any amount of $XPIN to deposit (in units of hundreds) and commit to a 4-year lock-up. Annualized Percentage Rate (APR) Calculation Rule: User Yield = (Individual User's Total Loyalty Deposit Amount / Network-Wide Loyalty Deposit Amount) * 80% * Annual Token Output
Flexible Deposit: Flexible Deposits actively chosen by depositors, Loyalty Deposits during the pre-activation phase of an Incentive Hub, and all compound interest yields will share Flexible Deposit yields. The total Flexible Deposit reward pool is 20% of the overall deposit reward pool, i.e., 10,000,000,000 * 20% = 2,000,000,000. Annualized Percentage Yield (APY) Calculation Rule: User Yield = (Individual User's Total Flexible Deposit Amount / Network-Wide Flexible Deposit Amount) * 20% * Annual Token Output
Automatic Reinvestment and Compound Effect Automatic Reinvestment Mechanism: XPIN Network encourages users to hold $XPIN long-term and continuously support the network. Mining outputs, Flexible Deposit principal and yields, and Loyalty Deposit yields can all participate in compound interest through automatic reinvestment, without manual operations, to help users maximize yields.
Mining Rate Growth
Delegating dNFTs to an Incentive Hub User deposits into an Incentive Hub will provide a significant boost to dNFT mining rates, helping dNFT holders earn more yields. All dNFT holders can delegate dNFTs to an activated Incentive Hub to achieve up to 100% mining rate enhancement. After delegation, mining yields will automatically transfer into Flexible Deposit, starting compound interest to help dNFT holders obtain higher yields.
Delegation Rules A single Incentive Hub can delegate up to 15,000 dNFTs. When the Incentive Hub is in an activated state, all delegated dNFTs will receive a 100% Weight enhancement.
Redemption and Flexibility
To balance user freedom and network stability, the Deposit model incorporates a flexible redemption mechanism while setting necessary restrictions to prevent short-term speculative behavior.
Flexible Deposit: Supports redemption of principal and yields at any time.
Loyalty Deposit: After Incentive Hub activation, the principal of Loyalty Deposits must mature before redemption. Yields can be redeemed at any time.
Redemption Fee: Each redemption requires a 1% fee, and the paid Tokens will be burned to reduce the impact of frequent redemptions on the network.
Fairness and Transparency
Weight Calculation Transparency: Weight enhancements are based on a linear formula, allowing users to easily calculate and verify their deposit effects.
Yield Distribution Fairness: Yields are calculated and displayed in real-time based on deposit proportions, ensuring accurate returns for each user's contribution. All distribution records can be queried on-chain after extraction, maintaining complete transparency.
Deposit Caps: The initiation and management of Incentive Hubs will be open to the community, with Incentive Hubs jointly established by the community and enjoying fair yield distribution based on contributions to network stability.
On-Chain Transparency: All deposit and redemption operations are initiated through on-chain contracts, ensuring full public transparency and safeguarding user asset security.
Conclusion and Advantages
XPIN Network's Token Deposit model achieves incentivization, flexibility, and sustainability through the following features:
Incentivization: Deposits enhance Weight and share network yields, with automatic reinvestment forming a compound effect to encourage long-term user participation.
Flexibility: No mandatory lock-up restrictions, combined with optional redemption fees and cooling periods, balancing user freedom and network stability.
Fairness: Transparent calculation formulas and proportional distribution mechanisms, combined with deposit caps, ensure balanced resource allocation and avoid excessive centralization.
Sustainability: Community governance mechanisms allow for dynamic parameter adjustments, supporting XPIN Network to become the largest consumer-oriented AI+DePIN ecosystem.
This Deposit model creates a win-win situation for depositors and dNFT holders, promoting XPIN Network's decentralization and growth. By depositing $XPIN Tokens, users not only gain ongoing yields but also contribute to the network's stability and expansion, collectively building a stronger XPIN ecosystem.For further details on the model or to participate in testing, please visit xtella.ai or join the XPIN community.
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