xXTKa is the liquid, composable token you receive from staking XTK at xtoken.cafe (Multi-Staking). xXTKa is continuously accruing more XTK, meaning you never have to claim or reinvest yield.
- When you stake your XTK, the going issuance/redemption rate is 1 XTK per 5 xXTKa
- You stake 100 XTK and receive 500 xXTKa
- You continue to stake for a period of months and your xXTKa is continuously accruing XTK
- After some period of time, you want to unstake
- The going issuance/redemption rate is now 1 XTK per 4 xXTKa (this number can only go in one direction)
- Your 500 xXTKa now represent 125 XTK
- You redeem your 500 xXTKa for 125 XTK, leaving you with 25% more XTK
xXTKa yield comes from two sources:
- Fees from xToken Terminal
- Inflationary incentives
Fees from xToken Terminal are claimed and swapped into XTK on the open market. In the same transaction, that XTK is transferred into the communal xXTKa pool, meaning the XTK redemption value of everyone's xXTKa increases incrementally. The same number of xXTKa now represent a larger number of XTK.
Every 6 months, the community votes on an inflationary incentive program to reward long term XTK holders who stake their tokens. A block of XTK is allocated and distributed linearly into the communal xXTKa pool. At each distribution (currently a Chainlink Keeper distributes the tokens every 36 hours), the redemption value of 1 xXTKa increases.
In order to reward long term holders at the expense of shorter term holders, we've implemented an unstake penalty when stakers redeem their xXTKa. The community's most recent vote on the unstake penalty landed on 2.75%, meaning 2.75% of the redemption value of xXTKa is removed from the XTK payout and immediately distributed to all remaining xXTKa holders.
- You hold 500 xXTKa
- Your friend holds 1000 xXTKa
- There are a total of 5000 xXTKa outstanding
- There are a total of 1000 XTK in the xXTKa contract
- Your current redemption value for 500 xXTKa is 100 XTK:
(500 / 5000 * 1000)
- Your friend's current redemption value for 1000 xXTKa is 200 XTK:
(1000 / 5000 * 1000)
- You redeem 500 xXTKa and receive 97.25 XTK, after accounting for the 2.75% unstake penalty
- The remaining xXTKa supply is 4500
- The remaining XTK supply in the xXTKa pool is 902.75
- The redemption value on your friend's 100 xXTKa is now 200.6 XTK, an instant gain of 0.3%