Why it works

The above system is designed to drive a persistent rise in the value of the $EXO token. Firstly, the pegged price serves as a ‘price floor’, below which a significant portion of exchange fees are diverted to buyback and burn of $EXO tokens. Combined with the reduced token emission rates whilst under peg, this mechanism serves to create a powerful deflationary effect which will restore $EXO to above its pegged price. As the pegged price rises, token emission rates are lowered in such a way to ensure that token scarcity increases while also ensuring that the overall value of staking rewards continues to rise along with the token price.

Because this pegged price is programmed to rise over time, this then results in a token with an ever-increasing price floor, pushing the price up consistently over time. This also creates an even greater incentive for holders of $EXO to trade using our platform, since a portion of the exchange fees go directly to boosting the value of their $EXO holdings.

Furthermore, this is achieved in a sustainable way, because it does so using externally-generated income in the form of fees paid by users of exoSwap and other exo-branded utilities. Unlike many DeFi projects - which rely on pyramid-style tokenomics - $EXO is not reliant on new buyers coming in to maintain its pegged price because it does so using profits from fees paid by users of our products - even those who have never bought or held a single $EXO token.

At the time of writing, this is a market-first mechanism not employed by any other decentralized swap platform. In conjunction with the fact that $EXO is, first and foremost, a utility token required in order to access our suite of unique features (and therefore comes with huge built-in demand), this creates a token that offers ongoing upside to investors regardless of how early they buy.