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X2Y2 Platform Introduction: Reshaping Community Token Economics, Establishing an Inclusive NFT Trading Market

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X2Y2 Platform Introduction: Reshaping Community Token Economics, Establishing an Inclusive NFT Trading Market

We at x2y2 share a common vision: to build a truly decentralized NFT marketplace and give back to the community. This is a mission, a journey, and our commitment.

The popularity of NFTs has been on the rise in 2021, with OpenSea being one of the earliest NFT trading platforms, monopolizing over 90% of the market share. It is undeniable that OpenSea has been helpful in constructing the entire NFT ecosystem, but it also has various issues, such as:

  • Too many system downtimes, affecting the entire industry
  • Centralized management model, arbitrarily withholding user assets
  • Standing with investors from Silicon Valley and Wall Street, sharing huge transaction fees contributed by the community

Unlike Web2, the underlying business logic of the Web3 economy lies in "value feedback to creators at the end," meaning that every user's "high-value behavior" on-chain should receive value feedback from the project party. Therefore, OpenDAO and LooksRare emerged as challengers at the end of 2021, interpreting this Web3 spirit through the method of "airdropping to OpenSea users" and showing all of us that OpenSea is not unrivaled.

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Has LooksRare Broken the "Pareto Principle"?

When it comes to the more trendy LooksRare, it is attempting to challenge OpenSea's monopoly through some innovative mechanisms, which is a perfect start. However, aside from the product details of LooksRare, we believe that there are also some serious underlying issues:

  • Focus on whales. LooksRare targets users on OpenSea who have traded over 3 ETH, accounting for only 20% of the total 900,000 users on OpenSea. Undoubtedly, these top users are crucial. However, currently, the global NFT users are still less than 0.02% of the total population, and it is necessary to reward all of them to "empower every NFT enthusiast."
  • Lack of transparency. Prior to the release of LooksRare, 3.3% of LOOKS tokens were allocated to so-called strategic investors at undisclosed prices. Essentially, this is no different from the behind-the-scenes deals conducted by OpenSea with investors from Silicon Valley and Wall Street.
  • Volume trading manipulation. This is the most serious of the three issues. Large volume trading dilutes the rewards for regular users, causing harm and punishment to honest users. A few whales with financial and technical advantages capture the majority of LOOKS rewards issued daily.

LooksRare claims to be "by NFT people, for NFT people," but fundamentally, it is a market "by the rich, for the rich."

Game Changer X2Y2

The name X2Y2 is derived from the perfect circle formula x^2 + y^2 = r^2, and our journey to establish the perfect decentralized NFT market is unfolding.

X2Y2 aims to address all three issues of LooksRare through the following tokenomics:

1. Inclusive Airdrop

We will take a snapshot of OpenSea at Ethereum block height #13916166 in the first block of 2022. The 861,417 OpenSea users who have transacted before this snapshot will be eligible for the X2Y2 airdrop, without a deadline. They will collectively receive 12% of the total token supply in the airdrop.

We appreciate the top 1% of whales who contributed 44.96% of the trading volume on OpenSea. At the same time, we are more faithful to the vision of X2Y2: creating a truly decentralized, community-owned NFT market. Based on these considerations, the dual-layer airdrop distribution scheme is as follows:

This distribution rule allows 95.17% of retail investors on OpenSea to receive 65.34% of the X2Y2 token distribution. Furthermore, to ensure that the airdrop reaches the true potential users of X2Y2, the condition for claiming the airdrop is that users must list all NFTs listed on OpenSea on X2Y2 at a lower or the same price.

2. No Private Sale, No Institutions

We will not conduct any private fundraising and will only conduct a public market presale of tokens based on a whitelist system, ILO Initial Liquidity Offering. The ETH obtained from the sale and 1% of X2Y2 tokens will be placed in Uniswap to provide initial liquidity, and all LP tokens will be permanently burned. The whitelist rules and the X2Y2 sales plan are as follows:

  • 1,000 addresses from the Discord community members and users who traded on the X2Y2 test platform will be whitelisted, with results announced on Discord
  • Whitelisted users can claim X2Y2 Genesis NFTs, and holders will have priority access to advanced features of the project's subsequent iterations
  • 15,000,000 X2Y2 tokens (1.5% of the total supply) will be offered for public sale at 1 X2Y2 = 0.0001 ETH
  • All unsold X2Y2 tokens will be burned directly after the ILO ends
  • After the ILO is completed, 10,000,000 X2Y2 tokens (1% of the total supply) + 1,500 ETH will be added to Uniswap to create initial liquidity
  • All LP tokens will be burned, permanently locking that portion of liquidity
  • Tokens acquired through ILO will unlock linearly within 360 days

The total supply of X2Y2 tokens is 1,000,000,000, and the overall token distribution plan is as follows:

3. No Trading Mining

We do not engage in trading mining; only staking rewards are provided. Therefore, there is no issue of volume trading manipulation, providing a fair opportunity for regular users to earn long-term higher returns. X2Y2 stakers will share 5,000,000 X2Y2 staking rewards daily, accounting for 0.5% of the total supply, along with 2% of the previous day's transaction fee revenue. 5% of the staking rewards and 1% of the initial LP liquidity together constitute the liquidity management portion of 1.5%.

We have designed the entire tokenomics for the community, with a focus on limiting whale users. Because we understand that the tokenomics of NFT enthusiasts are key to building a better OpenSea. At this stage, we need help from the NFT community, not investors. Our doors will always be open to those community users who can truly provide assistance.

Most general NFT markets share most functions, and we are no exception. On February 4, 2022, X2Y2 officially launched its market test version, which is a fully-featured NFT market. The smart contracts, front end, and back end are all developed 100% independently. In addition to the basic NFT trading market functions, it also features:

  • Real-time push notifications for buying and selling
  • Comprehensive rarity ranking and analysis
  • Batch sending and listing
  • Bidding on collections or features

The market test version is just the first step for X2Y2. In 2022, you can also expect the following features:

  • Availability notifications filtered by features
  • Direct purchase of multiple items from the listing
  • Multiple exchange aggregation
  • 3D/VR immersive NFT market UI/UX for display, socializing, and trading

We envision the ultimate form of X2Y2 to be a decentralized autonomous organization DAO, where DAO members will decide the direction of the project. We believe that what drives the progress of DAO is not the token price but the consensus of participants on the project's vision, and we will build this consensus! After completing the first phase of market construction, we will start exploring and gradually transfer leadership and financial control from the team to the DAO.

Born for inclusivity, every NFT enthusiast is a reliable supporter for us, and we will feedback the best project resources to the community users.

Website:x2y2.io
Discord:discord.gg/x2y2
Twitter:https://twitter.com/the_x2y2