MX Token (MX) tokenomics

MX Token (MX) is the native utility token of the MEXC Exchange, a global digital asset trading platform. It is a decentralized digital asset created on the Ethereum blockchain. The tokenomics are designed to integrate finance with user engagement, offering various benefits and incentives within the MEXC ecosystem.

Issuance Mechanism

MX Token was initially launched with a total token supply of 10 billion MXT.

• Deflationary Event: The project team announced on April 18, 2023, that MXT would undergo a 100:1 deflationary event, which would lower the total token supply to 100 million by dividing all MXT holdings by 100. However, as of April 2023, the mechanism for executing this deflationary event was not publicly detailed, making it unclear how the project team would modify token holders' balances directly.

Allocation Mechanism

The initial allocation of the 10 billion MXT supply was primarily directed toward ecosystem development, marketing, and the founding team.

The initial allocation breakdown was as follows:

• Note on Holdings: As of April 26, 2023, a significant portion of the supply was held in exchange wallets, including approximately 7.92 billion MXT (79.20% of the total supply) held by OKX and approximately 778.7 million MXT (7.79% of the total supply) held by MEXC.

Usage and Incentive Mechanism

MX Token serves as a multi-purpose utility token within the MEXC ecosystem, primarily focused on incentivizing user participation and providing preferential access to platform services.

Core Utility and Benefits for Holders

• Trading Fee Discounts: Holding MX tokens qualifies users for discounts on trading fees.
• Participation in Token Sales (Launchpad): MX token holders gain exclusive access to the MEXC Launchpad, a fundraising program allowing users to invest in new project tokens. Participation is based on the user's daily average MX balance over a snapshot period.
• Yield Farming (MX DeFi): Users can stake their MX tokens in the MX DeFi product to earn high yields in other project tokens. The staked tokens are utilized in various DeFi protocols, and returns are distributed to stakers.
• Airdrops and Rewards (Kickstarter): MX token holders can participate in MEXC Kickstarter events, where they commit MX tokens (often non-lockup) to vote for new projects and receive free airdrops of the new project tokens.
  • To participate in many airdrop events, users must maintain a minimum of 1,000 MX tokens in their spot wallet for a specified period (e.g., 30 days).
• Voting and Governance: MX tokens are used for voting on platform proposals and accessing premium services.

Future Functionality

The project team has outlined future functions for the MX Token, including:

• Collateralization: MXT is planned to be used to create debt positions and generate synthetic assets on MixTrust, with a proposed collateralization ratio of 600%.
• Reserve a MixID: Users will be required to hold at least one MXT token to maintain a digital identity once the MixID feature is launched.

Locking Mechanism and Unlocking Time

The MX Token is utilized in various platform activities that involve temporary locking or commitment, though the initial allocation to the founding team was not subject to lockups.

Locking Mechanisms within the MEXC Ecosystem

• Kickstarter Voting: When users commit MX tokens to vote for a project in a Kickstarter event, the tokens are temporarily locked during the voting period and are unlocked after the event concludes.
• Airdrop Participation (Non-Lockup): For many airdrop events, users must maintain a minimum MX balance (e.g., 1,000 MX for 30 days) but can then commit their tokens to a non-lockup mechanism to receive daily free airdrops.
• Launchpad Subscription: Users commit a certain amount of MX during the subscription period, which is based on their average MX balance during the snapshot period. These tokens are committed for the duration of the subscription and distribution process.

Information regarding a specific, long-term vesting schedule or future token unlock dates for the initial MX Token allocation (e.g., for team or reserve tokens) was not available.