XDC Network (XDC) -rahakkeen tokenomiikka

The XDC token is the native utility asset of the XDC Network, an enterprise-grade, EVM-compatible hybrid blockchain that utilizes the XinFin Delegated Proof of Stake (XDPoS) consensus mechanism. The token is essential for network settlement, security, and governance, supporting functionalities like smart contracts, cross-border transactions, and the tokenization of real-world assets.

Issuance Mechanism

The XDC Network employs the XinFin Delegated Proof of Stake (XDPoS) consensus mechanism, which is a highly optimized fork of Ethereum. This mechanism is designed for energy efficiency and high performance, boasting a two-second transaction block time and the capacity to handle over 2,000 transactions per second (TPS).

While the core consensus is Proof-of-Stake, validators are required to perform a small Proof-of-Work (PoW) when proposing a new block. This hybrid approach makes the network highly resistant to spamming while maintaining extremely low energy consumption.

The XDC 2.0 upgrade further enhances security and governance by introducing a Byzantine Fault Tolerance (BFT) committee of masternodes. This committee uses an advanced BFT protocol called Chained Hotstuff to achieve consensus and includes improved slashing conditions to swiftly penalize malicious behavior, thereby discouraging activities that could compromise network stability.

Allocation Mechanism

The XDC token supply was allocated across four primary categories at the launch of the mainnet. The total allocation was 37.5 billion XDC tokens, though the total supply is often cited as 37.5 billion XDC.

Usage and Incentive Mechanism

The XDC token serves multiple critical utility functions within the network, driving adoption and securing the ecosystem:

Core Utility and Fees

• Transaction Fees (Gas): XDC is used to pay for network gas fees, which are notably low, averaging around $0.00001 or less per transaction.
• Settlement: The token acts as the primary means of settlement for decentralized applications (dApps) running on the XinFin Hybrid Blockchain.
• Token Standards: The network supports various token standards, including XRC-20 for fungible tokens, XRC-721 for NFTs, and XRC-1155 for multi-token/semi-fungible tokens, all relying on the XDC base layer.
• Interoperability: XDC is used as a settlement vehicle within the R3 Corda ecosystem via a unique bridge, allowing value to move freely between the Corda public network and the XDC public network.

Staking and Incentives

• Staking and Security: XDC is used to incentivize validators (masternodes) and delegators who stake tokens to secure the network under the XDPoS mechanism.
• Governance: Token holders can actively participate in network governance through efficient voting mechanisms and decision-making protocols, contributing to important decisions and protocol upgrades.
• Ecosystem Growth: A significant portion of the token supply (27%) is dedicated to ecosystem development, including bounty programs, to foster growth and adoption.

For example, recent initiatives like the PrimeFi omnichain lending platform have launched incentive programs to boost Total Value Locked (TVL), offering a 7% APY on XDC staking (paid in XDC) and additional rewards for using staked XDC as collateral.

Locking Mechanism and Unlocking Time

The XDC Network utilizes locking mechanisms primarily through its staking and governance structure, as well as through initial allocation vesting.

Locking Mechanism

• Staking: The XDPoS mechanism requires validators and delegators to stake XDC tokens to secure the network and earn rewards. This staking process inherently locks tokens for the duration of participation.
• Vesting: The initial allocation to Founders/Team, Ecosystem Development, and Pre-Placement categories would typically be subject to vesting schedules to ensure long-term commitment and prevent immediate market saturation, although specific details on the vesting schedules for these initial allocations were not available.
• Slashing: The XDC 2.0 upgrade includes improved slashing conditions, which act as a locking and penalty mechanism by swiftly detecting and penalizing malicious behavior from validators, thereby discouraging actions that compromise network security.

Unlocking Time

Specific, future-dated token unlock events for the XDC token were not available. The initial allocation to Founders/Team, Ecosystem Development, and Pre-Placement would have been subject to vesting schedules, but the precise timelines for these historical unlocks are not detailed in the available data.