Token burning
Oxen has a robust token burning scheme designed to keep inflation under control
Last updated
Was this helpful?
Oxen has a robust token burning scheme designed to keep inflation under control
Last updated
Was this helpful?
The Oxen Network has transitioned to the Session Network. More information .
A crucial consideration for any with an indefinite emissions tail is how to keep inflation under control. In short: How can we keep rewarding indefinitely without also ending up with so much $OXEN floating around that the token becomes worthless?
$OXEN solves the inflation problem through a robust token burning scheme. This means that the effective net emissions are lower than they may seem, because most routine interactions with the Oxen network, including and , provably burn a certain amount of $OXEN.
Blink fees are 0.05 $OXEN per transaction output, plus a very small per-byte amount of $OXEN; all transactions have at least 2 outputs (recipient(s) and change), so the effective fee is around 0.101 $OXEN for a typical simple transaction
Of that fee, 40% goes to the service node that constructs the block validating the transaction (forming part of that service node’s reward), and the remaining 60% (i.e. around 0.06 $OXEN for a typical transaction) is burned
Basic ONS registrations burn 7 $OXEN (for Session/Wallet namespace registrations, a registration lasts forever; for Lokinet, a basic registration lasts for 1 year)
You can also buy 2, 5, and 10-year Lokinet registrations for 2x, 4x, or 6x the basic fee, respectively
We periodically reevaluate and adjust fees and burn amounts to maintain reasonable levels relative to the price of $OXEN. For example, in the Valiant Vidar hardfork, the Blink fees and burn ratios were adjusted from approx. 0.2 $OXEN fee with 80% burned in a typical transaction to approx. 0.1 $OXEN fee with 60% burned.
You can view the total burned $OXEN in the .