ONYXCOIN (XCN) Tokenomics

Issuance Mechanism

• Initial Distribution: Onyxcoin (XCN) was initially distributed via airdrops to non-US and non-sanctioned users.
• Total Supply: The total supply has been reduced to 48,470,523,779 XCN, with approximately 23–26.65 billion XCN in circulation as of early 2025.
• DAO-Controlled Supply: The Onyx DAO controls around 25 billion XCN, with 10 billion allocated to the DAO Treasury and 15 billion subject to a time-locked smart contract for gradual unlocking.
• Inflation Control: The controlled release of XCN tokens is designed to ensure trustworthy inflation and long-term value preservation.

Allocation Mechanism

• Transparency: The allocation and unlocking are governed by the Onyx DAO, promoting decentralized governance and transparency.

Usage and Incentive Mechanism

• Utility: XCN is the native token of the Chain protocol, used for:
  • Voting on protocol improvements (governance)
  • Paying for services across the Chain protocol ecosystem
  • Accessing discounts and premium services
  • Earning rewards through staking and participation
• Incentives: The protocol incentivizes participation through:
  • Staking rewards (users can earn passive income by staking or lending XCN)
  • Community governance (token holders can propose and vote on changes)
  • Potential future features such as liquidity provider incentives, NFT trading, and more

Locking Mechanism

• Time-Locked Smart Contracts: 15 billion XCN are subject to a time-locked smart contract, ensuring a gradual and predictable release of tokens into circulation.
• DAO Treasury: 10 billion XCN are held in the DAO Treasury, with spending and allocation subject to community governance and proposals.

Unlocking Time

• Gradual Unlocking: The 15 billion XCN controlled by the DAO are unlocked gradually over time, as specified by the smart contract. This controlled release is designed to avoid sudden inflation and maintain market stability.
• No Specific Cliff Unlocks Disclosed: While the unlocking is gradual, there is no evidence of large, sudden "cliff" unlocks that could cause significant market shocks. The process is intended to be transparent and predictable.

Summary Table

Implications and Analysis

• Decentralized Governance: The Onyx DAO's control over a significant portion of the supply ensures that the community has a strong voice in the protocol's future.
• Inflation Management: Gradual unlocking and transparent allocation help manage inflation and reduce the risk of sudden supply shocks.
• Incentive Alignment: Staking, governance, and ecosystem rewards align user incentives with the long-term health of the protocol.
• Market Impact: The absence of large, sudden unlocks reduces the risk of sharp price declines due to oversupply, a common issue in other projects with cliff unlocks.

Limitations

• Evolving Tokenomics: The Onyxcoin tokenomics may change over time as the project and community evolve. All details are current as of the latest available data.
• Lack of Detailed Vesting Schedules: While the broad mechanisms are clear, specific vesting schedules and unlock timelines for all allocations are not fully disclosed in public sources.

In summary, Onyxcoin's token economics are designed to balance decentralization, transparency, and long-term value through a combination of initial airdrops, DAO-controlled allocations, time-locked gradual unlocks, and robust incentive mechanisms. The structure aims to foster sustainable growth, community engagement, and market stability.