vFNX & FNX

The native token of the Fenix Protocol is FNX. A portion of the total FNX supply is allocated to ecosystem rewards through vFNX, which stands for vested FNX. vFNX can be staked to earn real yield in the form of FLP on any platform built on FNX.

vFNX can be converted into FNX through a vesting process. You have the flexibility to adjust your vesting period, which can range from 15 to 180 days. The conversion rate is 1:0.5 for a 15-day vesting period. vFNX placed into the vesting process carries the same weight in the bribes pool as staked vFNX does.

Emission Distribution

• 30% of the supply is allocated to incentives. Any transaction interacting with a FNX game contract will receive vFNX as a reward.

• 7.5% of the supply is distributed to liquidity providers in the FLP index composition.

• 2.5% of the supply is distributed to the vFNX staking pool to enhance the initial APR.

Emission Schedule

• The amount of vFNX rewarded per transaction is updated every epoch, with each epoch lasting 1 week.

• To adapt to changes in transaction volume compared to the previous epoch, vFNX minting is adjusted. If transaction volume increases, minting is slowed down to reduce the need for additional incentives, and vice versa.

• A minting multiplier, which ranges from 0.5 to 2 times a probabilistic factor called p, governs the rate at which vFNX is minted.

• The minting multiplier itself undergoes halving based on the FNX supply. The following table illustrates when these halvings will occur:

	Min	Max	Duration
Beginning	0.5000	2.0000	0-40%
First Halving	0.2500	1.0000	40-70%
Second Halving	0.1250	0.5000	70-90%
Third Halving	0.0625	0.2500	90-100%

Emissions Mechanism

The vFNX multiplier converts the amount involved in a player’s transaction to the amount of vFNX that’s to be minted for that specific transaction. As stated earlier, the multiplier is dynamically updated every epoch based on the change in volume from the previous epoch. This update does not consider the probabilistic factor p but only changes the part that ranges between 0.5 and 2.

For the case of an increase in volume, the new multiplier is determined as follows:

For each vFNX minted for the players, a fourth of the amount is minted for the FLP holders. For example, a total of 100,000 vFNX is minted throughout the day. This means that the FLP holders have been rewarded 25,000 vFNX, ready to claim at any given time.

Please refer to the Epochs page to learn more about how Epochs work.

Probabilistic Rewarding of vFNX

As previously mentioned, each transaction that interacts with a FNX game contract results in the minting of vFNX tokens for the address associated with the transaction. The quantity of vFNX minted is determined by the product of the vFNX multiplier and a probabilistic factor denoted as "p." The value of "p" is drawn from a mixed Gaussian probability distribution characterized by two peaks. An exaggerated representation of this distribution is depicted below.

The implemented distribution exhibits peaks at 0.6 and 100, with corresponding standard deviations of 0.1 and 10, respectively. This distribution yields a significant number of values that cluster around 100, generating excitement among players who stand to mint a substantially greater amount of vFNX with each transaction. On average, "p" tends to hover around 0.77.

Deflationary Mechanisms

• 20% of the bribes and 15% of the fees generated are allocated to buyback or burn FNX from the open market weekly.

• The conversion between vFNX <-> FNX causes FNX supply to deflate if the user selects a vesting schedule of fewer than 180 days.

• A 0.5% burn fee is charged whenever a user unstakes their FNX or vFNX.

• Certain NFTs that grant benefits can be purchased by burning FNX. For more information, visit the documentation of platforms built on top of the Fenix Protocol.