- Introduction and Objective
This proposal aims to create a fair and balanced airdrop for the distribution of the new token, based on the LXP and LXP-L tokens already accumulated by the community. The primary goal is to appropriately reward the active community and major liquidity providers, while avoiding a disproportionate concentration of tokens in the hands of a few holders, ensuring a fair distribution within the limit of 20% of the total supply of 1 billion tokens (ASSUMPTION).
In THIS EXAMPLE, the airdrop will consist of 200 million tokens, which represents 20% of the total supply of the new token.
2. Conversion Proportion of LXP and LXP-L into the New Token
LXP (Tokens Earned through Participation and Activity):
1 LXP = 1 new token
Users with LXP will be rewarded directly, with 1 new token being equivalent to 1 LXP.
The distribution of tokens will be proportional to the amount of LXP accumulated by users.
LXP-L (Tokens Earned through Liquidity Provision):
1,000 LXP-L = 1 new token
Users who provided liquidity to the project with LXP-L will be rewarded with 1 new token for every 1,000 LXP-L they hold.
To ensure a fair distribution, we will apply Tiers with multipliers for large holders of LXP-L.
- Airdrop Distribution of 20% of the Supply (200 Million Tokens)
The airdrop will be divided between users with LXP and LXP-L, as follows:
- 120 million tokens (60% of the airdrop) will be allocated to users with LXP. The distribution will be direct, with 1 LXP = 1 new token, rewarding users who have actively participated in the project.
- 80 million tokens (40% of the airdrop) will be allocated to users who provided liquidity with LXP-L. However, to ensure a balanced and fair distribution, we will apply Tiers to limit the reward for wallets with large amounts of LXP-L, as follows:
- Tiers for LXP-L (Liquidity Providers)
- Tier 1: 50,000 to 500,000 LXP-L
Users in this tier will receive 1 new token for every 1,000 LXP-L, with no multipliers applied. - Tier 2: 500,001 to 5,000,000 LXP-L
Users in this tier will have a 0.8x multiplier. For example, if a user has 1,000,000 LXP-L (equivalent to 1,000 new tokens), they will receive 800 new tokens due to the multiplier. - Tier 3: 5,000,001 to 10,000,000 LXP-L
Users in this tier will have a 0.5x multiplier, halving the reward.
Example: If a user has 6,000,000 LXP-L (equivalent to 6,000 new tokens), they will receive 3,000 new tokens. - Tier 4: More than 10,000,000 LXP-L
Users with more than 10 million LXP-L will have their reward limited to 10,000 new tokens, regardless of the amount of LXP-L. This limit prevents large holders from consuming a disproportionate amount of the 80 million tokens.
- How It Will Stay Within the Limit of 20% of the Supply
Based on the proposed division:
- 120 million tokens will be allocated to holders of LXP.
With an estimated 557,000 users holding more than 2,000 LXP, this distribution is well-balanced and will ensure that active and committed users are fairly rewarded. - 80 million tokens will be allocated to liquidity providers with LXP-L. Although some users hold large amounts of LXP-L, the Tiers applied prevent these large holders from receiving an excessive portion of the tokens, ensuring that the 300,000 wallets holding more than 50,000 LXP-L will still receive a significant reward but in a controlled manner.
This division, taking into account the Tier limitations for large holders of LXP-L, ensures that the distribution of 200 million tokens stays well within the 20% of the total supply of the new token, promoting a fair distribution for all participants.
- Benefits for the Project and Community Valuation
Ensuring a fair and balanced distribution of the new token to users who contributed in different ways to the project (either through activity or liquidity provision) will bring significant benefits to the project as a whole:
- Strengthening the Community: A well-rewarded community feels valued and motivated to continue contributing to the project, increasing engagement and participation.
- Promoting Sustainable Growth: By rewarding both active users with LXP and liquidity providers with LXP-L, the project creates an incentive system that keeps participants engaged and strengthens the user base.
- Valuation of the new token: A fair airdrop process attracts positive attention to the project and boosts confidence in the tokenomics. When users see they are rewarded fairly, it can lead to higher demand for the new token, contributing to its market valuation.
- Balanced Distribution: The Tier limitations for large holders of LXP-L ensure that the token is not concentrated in a few hands, preventing market manipulation and encouraging a broader distribution among participants.
With this strategy, the project can ensure not only a fair distribution but also sustainable valuation and continuous engagement from the community. The proportional reward for different types of contributions ensures that everyone feels part of the project’s success, leading to organic and healthy growth for the new token.