🪙INTX Token and xINTX Staking
Last updated
Last updated
INTX is the utility and governance token of IntentX. It has a total fixed supply of 100,000,000 tokens.
INTX is a liquid token with no encumbrance (tax or other).
The IntentX tokenomics are built and centered around xINTX, which is the staked form of INTX and serves as the project's main utility and value capture mechanism.
Staking Utility:
85% of IntentX revenue distributed to xINTX stakers
10% of gross Serviced Front End revenue distributed to xINTX stakers
Governance voting rights
A long-term increasing share of the protocol through the exit fee mechanism.
Staking benefits for traders: a) Increased Trader Incentives
Referral Program Rewards
Access to unique strategies and products (Solver LP)
At IntentX, we're inspired by the thought of designing a system that benefits our community of long-term holders. We believe prioritizing the value capture and rewarding long-term stakers will create sustainability for the IntentX project.
The xINTX staking parameters are set up with four goals in mind:
To incentivize and reward long-term stakers.
To provide protocol revenues and value capture to these stakers.
To protect loyal stakers from short-term trading habits.
To reward traders through incentives while balancing the health of long-term stakers.
This design is inspired by a combination of innovations that have come before us to align the long-term values of stakers.
Much like how one would stake or unstake in any simple single-sided vault, users deposit INTX and, in return, receive xINTX. This process operates on a dynamic ratio defined by set parameters.
Initially, the deposit (or minting) ratio is set at 1:1, meaning for every INTX you deposit, you get an equal amount of xINTX. As described below, this ratio can evolve based on the exit fee applied to users who unstake early.
Based on how long tokens are staked into xINTX, users will receive a boost to their revenue over time, and we also introduce a dynamic exit fee structure to increase value to all stakers aligned on a long-term basis.
Loyalty Stake Duration: The period of 16 weeks. If you stake for this long, you can avoid all but the standard redemption fee.
Maximum Boost: The 2.5x value means that if you stake your tokens for the full loyalty duration, the rewards you earn can be multiplied by up to 2.5 times. This increases linearly over the maturity of your staked position up to 2.5x maximum boost.
Early Unstaking Penalty: Early unstaking leads to penalties that start as high as 25% and decrease linearly over time. The 25% fee applies if you unstake immediately, and it reduces linearly to 1% over the 16-week period.
Flat Redemption Fee: A minimum 1% redemption fee remains for all staked positions at max maturity (16 weeks).
The early unstaking penalty and flat redemption fee go to increasing the dynamic pool ratio, and thus proportionally increase the value of all remaining xINTX stakers position.
What it is: The ratio at which you can exchange xINTX for INTX.
How it evolves: If someone unstakes early and incurs a penalty, this penalty is added to the pool, effectively increasing the amount of INTX backing each xINTX.
How values are determined: The more penalties incurred by early unstakers, the better the INTX to xINTX ratio becomes for loyal stakers. The pool ratio is altered only by the act of redeeming, not depositing.
Long-term stakers of xINTX can benefit as their position increases in value as measured by INTX. The longer you stake, the higher the ratio increases. Further, the proportional share of revenue distributions increases.
As users redeem xINTX → INTX, the redemption fee / penalty will go to increase the remaining backing ratio forever. Users redeem at the given INTX/xINTX ratio, which will continue to grow over time.
User A is the first to deposit into xINTX. They deposit 10 INTX and receive 10 xINTX as the initial ratio starts at 1:1
Next, User B deposits 40 INTX into the xINTX pool. Because the pool ratio is still 1:1, they receive 40 xINTX.
User B then immediately redeems his 40 xINTX into INTX, resulting in the maximum 25% penalty. At the 1:1 ratio with a 25% penalty, the user receives 30 INTX in return.
10 INTX coming from the exit penalty then goes to permanently increase the backing ratio of the pool.
The staking ratio is now 1 xINTX : 2 INTX as there are 10 xINTX (User A) and 20 INTX backing the pool (10 from User A deposit and 10 from User B exit penalty).
The pool ratio does not change when someone enters, it only changes when someone leaves.
User A can now redeem his 10 xINTX into 20 INTX (minus whatever exit penalty he incurs, if he stakes to max 16 weeks it is a flat 1%)
Let’s say that User A does not redeem, and they stay in the pool.
User C can now stake INTX into xINTX at the new ratio of 1:2. They stake 20 INTX and receive 10 xINTX.
Both User A and User C can now redeem xINTX to INTX at a ratio of 1:2. And any new entrants at this time will have the same conditions and ratio.
User A, as a long-term staker, has doubled his proportional holdings of INTX, including doubling his proportional share of revenue. Just from remaining staked as other users exit.
User C, as a new entrant, receives less xINTX / INTX, but their share of the protocol holdings remains equal to the INTX he entered the pool with.
The system is balanced to remain fair to new entrants while rewarding long-term stakers.
Trading Revenue: Our tokenomics are structured so that the value created through IntentX is funneled to stakers.
Reward Multiplier System: This system determines the amount of rewards a staker gets based on the duration they've staked. The longer you stake, the bigger the multiplier. For instance, staking for 1 week gives a small fraction of the potential rewards, whereas staking for the full 16 weeks provides the maximum 2.5x boost.
Dynamic Pool Ratio: This mechanism allows for long-term xINTX stakers to increase the proportion of total supply that they own over time. Because all emissions and vesting happens in xINTX, any redeeming and selling will also go to benefit long-term stakers.
This system is designed to balance short-term user movements with long-term stability and growth, benefiting the entire community in the process.
