L1X Tokenomics
Layer One X (L1X) employs a meticulously crafted combination of mathematical modeling, economic theory, and advanced data analysis to design a robust and trustless platform.
Last updated
Layer One X (L1X) employs a meticulously crafted combination of mathematical modeling, economic theory, and advanced data analysis to design a robust and trustless platform.
Last updated
Strategic Partnership with Prysm Group: Building a resilient Tokenomics Framework for L1X
Layer One X (L1X) had partnered with Prysm Group, a globally renowned consulting firm specializing in the economics and governance of blockchain-based ecosystems. Known for their leadership in economic modeling and innovative tokenomics, Prysm Group has a stellar reputation for creating sustainable and impactful economic frameworks for decentralized platforms. Prysm Group collaborates with academic and industry experts from leading institutions such as MIT, Stanford, and the University of Chicago. These advisors provide cutting-edge insights into crypto economics and decentralized governance.
L1X’s tokenomics framework is deeply rooted in foundational principles of game theory, market design, contract theory, monetary economics, and social choice theory. These disciplines guide the architecture of governance mechanisms, enabling stakeholders to actively participate in platform updates, resource allocation, and decision-making processes. By embedding these elements into the protocol, L1X ensures transparency, fairness, and economic sustainability.
The governance framework integrates a systematic approach to proposals and decisions, authorizing stakeholders to contribute to the platform’s evolution. The mechanisms include:
• Monetary Policies: Establishing the coin supply dynamics to manage inflation, deflation, and market stability.
• Platform Subsidies and Rewards: Incentivizing participants to enhance liquidity, security, and ecosystem growth.
• Rights and Obligations: Defining contractual terms, including escrow services and a dispute resolution process, to enforce trust and compliance.
L1X models its ecosystem by analyzing and optimizing critical economic parameters:
1. Economic Activity: Tracking and promoting healthy transaction volumes and ecosystem engagement.
2. Price Stability: Mitigating price shocks and ensuring consistent coin valuation.
3. Coin Release Schedule: Implementing a controlled emission rate for long-term sustainability.
4. Reward Distribution: Structuring incentives for validators, developers, and community members to drive participation.
5. Lock-Up and Vesting Periods: Introducing mechanisms to reduce coin velocity and maintain market stability.
6. Governance Value: Quantifying and enhancing the value of governance rights for token holders.
To maintain economic integrity and prevent inflationary risks, the L1X token supply is capped at 1 billion coins. This hard cap aligns with the platform’s overarching goals of balancing supply with demand, incentivizing participation, and ensuring long-term ecosystem health.
By integrating these comprehensive economic and governance models, L1X achieves a tokenomics framework that is not only efficient and scalable but also resilient to market fluctuations, fostering a thriving ecosystem for cross-chain interoperability.
Layer One X (L1X) has strategically designed its token distribution model to ensure a balanced allocation across all critical components of its ecosystem. The distribution strategy reflects L1X’s commitment to fostering sustainable growth, incentivizing key stakeholders, and maintaining long-term stability within the network. Below is a detailed breakdown of the L1X token distribution.
1. Team Pool (22.50%)
The Team Pool allocation underscores L1X’s dedication to rewarding the contributions of its core team members. This portion ensures that the team remains incentivized to drive innovation and achieve long-term goals. The vesting schedule for this allocation reflects a commitment to aligning the team’s interests with the platform’s growth. The Team Pool has the longest vesting schedule among all stakeholders on the platform, featuring a 12-month cliff followed by a 36-month vesting period.
2. Growth Pool (20%)
The Growth Pool is designated to fuel ecosystem expansion, partnerships, and technological advancements. This allocation is key to maintaining a competitive edge in the evolving blockchain landscape by enabling strategic investments and ecosystem development.
3. Presale to DeX (20%)
Tokens allocated for the Presale are intended to onboard supporters and strategic investors who believe in L1X’s vision. This distribution ensures that the platform has the necessary funding to scale operations and enhance its infrastructure.
X-Perks (12.50%)
The X-Perks allocation is specifically reserved for a group of early investors who have demonstrated their confidence in the L1X vision and its long-term potential. This pool holds coins for their early investments and is designed to incentivize their continued engagement with the platform. Additionally, X-Perks helps foster user participation in governance, liquidity provision, and other essential network activities, ensuring alignment with the broader goals of the ecosystem.
5. Certificate Stabilization Pool (5%)
This pool supports Certificate Stabilization which is in addition to rewarding nodes including L1X Full Validator Nodes and X-Talk Nodes, ensuring the platform maintains high standards of reliability, trust, and accuracy across its decentralized services. This allocation strengthens the security and trustworthiness of the network.
6. Marketing Pool (5%)
The Marketing Pool is dedicated to driving awareness and adoption of L1X. These tokens fund promotional activities, campaigns, and educational content to expand the platform’s reach and grow its user base.
7. Advisor Pool (5%)
The Advisor Pool compensates industry experts and strategic advisors who contribute their expertise to the platform’s development. This allocation ensures that L1X benefits from cutting-edge guidance in blockchain and economics.
8. Developer & Bug Bounty Pool (5%)
The Developer & Bug Bounty Pool is dedicated to incentivizing developers to contribute to the growth and innovation of the L1X ecosystem. This allocation supports the development of tools, dApps, and technological advancements while reinforcing L1X’s commitment to fostering an open-source developer community. Additionally, it funds bug bounty programs to ensure the platform’s security and reliability, encouraging collaborative contributions and continuous improvement.
9. Validator Pool (5%)
The Validator Pool rewards participants who secure the network by validating transactions and maintaining its integrity. This allocation ensures decentralized governance and platform security.
Vesting of the L1X Coins is used to maintain the project's overall integrity while managing the technology's adoption phase. The vesting schedule is designed to ensure a balanced distribution of tokens, aligning the interests of various stakeholders and securing long-term project sustainability. Below is a breakdown of each pool, its allocation, cliff period, and vesting period.
The Release Pool plays a critical role in Layer One X’s (L1X) tokenomics, functioning as a key mechanism to ensure price stability and mitigate the risk of sudden market dumps. This strategic feature is designed to regulate the automated sale of coins, aligning with L1X’s broader commitment to fostering a sustainable and healthy token ecosystem.
L1X coin holders have the choice to stake their coins in the Release Staking Pool (Decentralised Contract), which operates in tandem with a sophisticated performance algorithm. This algorithm interacts seamlessly with the trading pools where L1X is listed, ensuring controlled and strategic token sales. The system is designed to prevent large-scale sell-offs from any token distribution pool, thereby maintaining market stability and preventing price volatility. For 2025, this strategy is aimed at preserving a healthy and sustainable L1X coin price, while simultaneously providing coin holders with the flexibility to sell their tokens in a steady and controlled manner, achieving optimal market conditions for all stakeholders.
• Automated Sales: Tokens are released systematically to maintain liquidity without overwhelming the market.
• Controlled Supply: The gradual release prevents oversupply, ensuring a healthy balance between supply and demand.
• Dynamic Adjustments: The system can adapt to market conditions, further reducing the likelihood of price volatility.
The Release Pool is central to L1X’s anti-dump strategy, specifically designed to protect the token’s value and promote long-term growth. By automating and controlling token sales, the pool minimizes the potential for large-scale sell-offs by stakeholders or malicious actors, which could destabilize the market.
1. Market Stability: Protects the token price from drastic fluctuations caused by high-volume token releases.
2. Investor Confidence: Demonstrates a commitment to sustainable market practices, building trust among investors and stakeholders.
3. Strategic Liquidity Management: Ensures sufficient liquidity in decentralized exchanges (DEXs) while avoiding excess supply.
By incorporating the Release Pool into its tokenomics model, L1X takes a proactive approach to address the challenges of token price stability. This mechanism not only supports the platform’s long-term vision but also enhances its appeal to both investors and users by fostering a fair and balanced ecosystem.
To promote transparency and build trust within the community, the Release Pool Algorithm has been designed as an open-source solution, allowing stakeholders to audit and understand its functionality. This sophisticated algorithm governs the controlled release and sale of L1X coins, ensuring market stability and mitigating the risk of price volatility.
Key Features of the Algorithm
1. Performance-Based Optimization: The algorithm dynamically adjusts token release rates based on market conditions, such as trading volume, liquidity, and price trends, to ensure steady sales without overwhelming the market.
2. Anti-Dump Safeguards: Built-in mechanisms prevent large-scale sell-offs, ensuring that tokens from distribution pools enter the market in a controlled and predictable manner.
3. Market Synchronization: The algorithm interacts directly with trading pools, analyzing real-time data to determine the best conditions for releasing tokens, thereby maintaining healthy market activity.
4. Stakeholder Flexibility: Coin holders staking in the Release Staking Pool benefit from a system that prioritizes steady sales, allowing them to sell their coins at optimal prices while contributing to the overall stability of the ecosystem.
The L1X coin release schedule is strategically crafted to manage token supply over the long term, promoting sustainable growth, market stability, and investor trust as we progress toward the hard cap of 1 billion tokens. This approach ensures that all categories can stake their coins in the release pool while encouraging new buyers on exchanges to invest in L1X, supported by robust anti-dump measures.
