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Adaptive Velocity-Based Deflation

Beyond the static burn, NOX introduces a novel, dynamic deflationary mechanism responsive to market conditions.

The Concept: The system can be configured to apply an additional minor burn (capped at a maximum of 2%) on transactions, with the rate modulated by the velocity of trading volume.

The Execution: The exact burn rate can be tuned via governance vote. It can even be designed to auto-adjust based on an exponential moving average (EMA) of trade volume relative to circulating supply.

The Outcome: In practice, this acts as an economic thermostat:

High Trading Velocity: Triggers a higher deflationary burn rate, helping to absorb excess volatility and convert it into permanent scarcity.

Low Trading Velocity: Results in minimal or no additional burn, preserving token supply during periods of stability or consolidation. This advanced feature allows the NOX economy to automatically respond to market dynamics, providing built-in stability without requiring constant manual governance intervention.


Robust Safeguards and Immutable Caps

To ensure absolute trust and safety, the fee mechanism is governed by strict, immutable limits:

Maximum Fee Caps: The buy, sell, and potential transfer tax rates are hard-capped at 10% each.

Combined Limit: The total possible deduction from any single transaction (fee + deflation) cannot exceed 20%.

Governance-Locked Adjustments: Only addresses with the GOVERNOR_ROLE (typically a DAO multi-sig or timelock contract) can propose changes to tax parameters, and these changes are subject to a community vote.

Option for Permanent Renunciation: Once the ecosystem is mature and parameters are optimized, the development team can permanently renounce all administrative privileges, locking the tax structure in its final, community-approved state forever and eliminating any possibility of future manipulation.

These safeguards are critical to preventing the "bad" behaviors and predatory fee changes that have plagued other projects, establishing NOX as a trustworthy and immutable economic system.


The Strategic Outcome: A Virtuous Cycle

The transaction tax framework is not merely a feature; it is the catalyst for a virtuous economic cycle:

  1. Trading Activity generates fees.

  2. Fees are split to fund development, governance, and liquidity.

  3. Funded Development builds more utility, attracting more users.

  4. Funded Liquidity creates deeper, stabler markets, attracting more capital.

  5. The Burn increases scarcity, rewarding long-term holders.

  6. Rewarded Holders become more engaged stakeholders, further strengthening the ecosystem.

This creates a powerful, self-sustaining feedback loop where growth begets more growth.


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