WebX Smart Contract
- Steve Rodrigue
- Smart contracts
- December 10, 2024
Table of Contents
WebX serves as the foundational currency of LegitDAO, a decentralized autonomous organization (DAO) designed to build a sustainable, decentralized, and innovative ecosystem. By embracing a unique approach to tokenomics, WebX differentiates itself from other cryptocurrencies that often prioritize immediate supply and circulation. Instead, WebX employs a gradual minting process designed to align token distribution with the network’s organic growth. This article delves into the mechanics, goals, and vision behind WebX, showcasing how it builds value while promoting decentralization and community involvement.
Tokenomics of WebX
Total Supply and Controlled Minting
WebX has a capped supply of 94,608,000 tokens, making it inherently scarce. Unlike most cryptocurrencies that pre-mint their tokens, WebX begins with no tokens in circulation. Instead, it introduces a gradual minting process, releasing 3,240 tokens every six hours over a span of 20 years. This controlled approach results in a slow and steady token supply, ensuring that the network’s growth and adoption drive its value.
To facilitate microtransactions, WebX uses a unit of value called a steve, representing 0.000000000000000001 of a WebX token. This precision allows for flexibility in transactions, no matter how small, ensuring inclusivity within the ecosystem.
General Tokenomics
| Total Supply | Initial Circulating Supply | Minting Period | Minting Duration |
|---|---|---|---|
| 94,608,000 | 0 | 6 hours | 20 years |
Allocation Strategy
WebX employs a smart contract to allocate minted tokens in a structured and intentional manner. The contract supports up to 3,240 allocators, each receiving 1 token every six hours. Over the 20-year minting period, a single allocator will produce approximately 29,200 tokens. Importantly, wallets can hold multiple allocators, scaling their minting capacity. For instance, a wallet with three allocators would mint 3 tokens every six hours, totaling 87,600 tokens over 20 years.
The allocation is divided as follows:
- 810 allocators are reserved for contributors who supported WebX during its pre-sale, distributed proportionally based on their investment.
- 2,430 allocators are allocated to developers responsible for building, marketing, and enhancing WebX’s utility.
This distribution ensures that both early supporters and developers are incentivized to drive the adoption and success of the WebX ecosystem.
Allocator Tokenomics
| Total | Development | Contibutors | Amount Token Mint |
|---|---|---|---|
| 3,240 | 2,430 | 810 | 1 |
Gradual Circulation: A Unique Approach
Aligning Supply with Demand
WebX’s minting process directly ties its supply growth to the network’s development. By limiting the minting rate to 3,240 tokens every six hours, WebX ensures that the token supply grows more slowly than its demand, fostering value appreciation. As LegitDAO’s ecosystem expands, the utility of WebX tokens will increase, further driving demand.
This approach avoids the pitfalls of rapid token inflation, which can lead to price volatility and a loss of investor confidence. By spreading developer token sales over 20 years, WebX mitigates market dumps and ensures a stable, decentralized community of holders.
Incentivizing Adoption and Innovation
Empowering Contributors
Contributors who supported WebX during the pre-sale are rewarded through proportional allocations of allocators. These 810 allocators create a strong base of community-driven stakeholders who are incentivized to promote and adopt WebX.
Driving Development
With 2,430 allocators reserved for developers, WebX secures long-term funding for building platforms, acquiring integrations, and marketing the token. This allocation:
- Supports innovation: Developers can create tools and applications that enhance WebX’s utility within the LegitDAO ecosystem.
- Encourages adoption: Marketing efforts ensure that WebX reaches a wider audience, driving organic growth.
- Fosters partnerships: Strategic integrations with other platforms increase WebX’s reach and utility.
Decentralized Trading: The WebX Marketplace
A Peer-to-Peer Trading Platform
The WebX smart contract integrates a decentralized marketplace, enabling token holders to trade their minted WebX tokens without intermediaries. Sellers can list their tokens at a price of their choosing, and buyers can fulfill orders through an automated match-making algorithm.
Match-Making Algorithm
The marketplace’s algorithm ensures efficiency and fairness by prioritizing the cheapest offers. It works as follows:
- Sorting Offers: All selling offers are arranged by price in ascending order.
- Partial Fulfillment: If a single offer cannot satisfy the buyer’s entire order, the algorithm moves to the next cheapest offer.
- Dynamic Adjustments: The marketplace updates offers in real time, reflecting new listings and withdrawals.
Benefits of the Marketplace
- Decentralization: Trades occur directly on the blockchain, ensuring transparency and security.
- No Fees: The marketplace charges no transaction fees, with users only paying blockchain gas fees.
- Seller Flexibility: Sellers can adjust or withdraw their offers at any time, maintaining control over their assets.
Learning from Crypto History
Inspiration from Bitcoin
WebX’s tokenomics draw inspiration from Bitcoin’s gradual release model, which fostered decentralization and long-term value appreciation. Over 16 years, Bitcoin’s controlled supply and increasing adoption established it as a store of value and a widely used cryptocurrency.
Avoiding Pitfalls
Conversely, WebX avoids the mistakes of oversupplied tokens like the Hawk Tuah meme coin. By flooding the market with 97% of its supply at launch, Hawk Tuah suffered rapid devaluation and loss of community interest. WebX’s gradual minting ensures a balanced supply-demand dynamic, protecting its value over time.
Long-Term Vision for WebX and LegitDAO
Building a Sustainable Ecosystem
The funds generated through WebX’s minting process will be strategically reinvested to:
- Develop platforms: Creating innovative applications that leverage WebX as a currency.
- Drive adoption: Partnering with other ecosystems to integrate WebX into a wider array of use cases.
- Enhance the community: Encouraging decentralization by distributing tokens across a diverse group of stakeholders.
Ensuring Decentralization
WebX’s allocation strategy prioritizes decentralization by spreading tokens across 3,240 allocators over 20 years. This distribution prevents centralization of power, aligning with LegitDAO’s mission to create a truly community-driven ecosystem.
Conclusion
WebX stands out as a cryptocurrency that prioritizes sustainable growth, decentralization, and community involvement. Its innovative tokenomics, controlled minting process, and decentralized marketplace establish a foundation for long-term success within the LegitDAO ecosystem.
By drawing lessons from Bitcoin’s success and avoiding the mistakes of oversupplied tokens, WebX ensures that its value grows alongside its adoption. Whether you’re a developer, contributor, or token holder, WebX offers an inclusive and forward-thinking approach to building a decentralized economy.
The future of LegitDAO and WebX is bright, driven by thoughtful design and a commitment to empowering its community. Together, they are poised to redefine how cryptocurrencies can create value, foster innovation, and support sustainable ecosystems.
