Nov 18, 2022 Frank Stewskid
After Elrond’s rebranding to MetaverseX earlier this month, its native DEX – Maiar has announced plans for a massive revamp to a v2 named xExchange. The transformation will change the economics, utility, and mechanics of the DEX’s token – MEX along with its LKMEX – Locked MEX token. The announcement came with a detailed whitepaper, including future development plans for the exchange.
1/ Today, we present the Maiar DEX upgrade & transformation to xExchange.— Beniamin Mincu | xday.com | Paris. 3-5 Nov 🔥 (@beniaminmincu) November 17, 2022
Months of endless efforts.
From many people and teams. All leading to this point.
So now, here's the economics, utility, & mechanics of MEX 2.0 🔥
Important step for #MultiversX.https://t.co/4utl25avyq
The new concept will need to pass a governance vote between November 28 and December 5 in order to be implemented. If the community supports the idea, the team plans to launch the new version of the exchange on December 8.
According to the whitepaper published by the MetaverseX (previously Elrond) team, the new DEX will be built around the LKMEX token, whose function is compared to that of a battery, since just like it needs to be charged with electricity to function, the LKMEX token will need to be charged with energy points based on the time of the locking. LKMEX will be able to be locked for 1,2, or 4 years and will provide its holders with various benefits on the platform. Users will be able to shorten their LKMEX staking period, however, that would come at a cost of up to 80% of the energy points accrued in the staking process.
Benefits brought to staked LKMEX holders will include boosting APR for selected farms, boosting APR for Metastaking, earning from energy removal fees as 50% of them are burnt but the other 50% are shared directly between locked LKMEX holders, just like the mechanics of trading swap fees, where 0.1% is accrued then half burned, half distributed to token holders. LKMEX token holders will be able to participate in the governance of the platform, as well as earn LKMEX and Metabonding rewards without having to stake their LKMEX tokens.
Meanwhile, the whitepaper also reveals a new tokenomics model of the MEX token, which will have its emission decreased to 350,000 tokens per block in its second year – a 65% decrease from its current emissions of 1,000,000 tokens per block. Furthermore, the team plans to introduce various token burning initiatives, such as burning 50% of the fees for removing staked LKMEX energy, and 50% of the swap fees, as well as 100% of the 1% fee accrued on withdrawing from a farm during first 2-3 days of depositing in it, and others.
In the future, the project plans to launch a lottery capturing value to fund various global causes and NGOs. There are also plans for boosted APR lending pools for some users, depending on their energy points, support for BNB and Ethereum networks, allowing the community to propose and discuss improvements in the protocol, and creating a strategic fund for future development. The future goals of xExchange also include gamificational governance system rewarding participants, introducing limit and range orders, adapting Uniswap v3’s concentrated liquidity concept, and finally dual yield farms and alliance farms.
The long-distance roadmap of xExchange is centered around developing its own Sovereign Shard – an asynchronous version of the MetaverseX blockchain, with its own nodes and incentives connected to the mainnet through a bridge.