Xenophon Docs
Initial Network State
The following is the initial policy status:Our initial goal was not to find a stable price. This may seem contrary to our monetary aspirations, but we assure you that this is not the case. Xenophon can be adjusted to optimize for different factors of things. The main trade-off is the consistency of volatility and profitability with stability. Volatility and profitability lead to growth; that's what we want early on.
Xenophon should continue to work well as a stable asset in a policy and size tightening scenario. Upside and downside pressures should stabilize at some non-intrinsic value. With loose policies, Xenophon has the potential to become a decentralized machine for wealth creation, regardless of size. The market premium of the token measures the positive sum of the game; all extrinsic value will be the new wealth created.
Alpha State:
The original network has one-way vault (money in, no money out), tied contracts (through which supply is increased and profits generated) and collateral contracts (in which profits are distributed).
The following is the initial policy status:
BCV changes based on the variety of bonds. The policy team periodically adjusts this to meet the Protocol's objectives. For example, if the Protocol wants to accumulate more liquidity into its treasury, it can reduce the BCV of liquid bonds to increase its bond capacity, to see the BCV targets for different bond types.
Bond Vesting Period
For all bond types, it is set to 33,110 Ether blocks or approximately five days.
XPH Distribution
Each time someone purchases bonds, the proceeds will go to the Xenophon treasury. The corresponding amount of XPH will be minted and distributed to three parties.
● Bonder
The bond purchaser will receive the quoted amount of XPH linearly over the vesting period.
The DAO receives the same amount of XPH as the Binding Agreement, which represents the DAO's profit.
● Stakers
After accounting for the XPH allocated to the Bonder and the DAO, the remainder will be allocated to all stakeholders in the Protocol.
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