xpla

Prop 97: [Proposal] Make XPLA Great Again - Phase3: Validator Settlement 2.1

1. Background and Current Status

Currently, the XPLA ecosystem successfully operates through the “Validator Settlement 2.0” program (details can be found https://explorer.xpla.io/mainnet/proposal/53 ), which supports the stable operation of validators. This program has acknowledged the contributions of validators and has been a crucial foundation for maintaining the XPLA’s stable network.

However, we are not stopping here and are exploring ways to further accelerate the growth of the XPLA token’s value and the ecosystem. As the third phase of the ‘Make XPLA Great Again’ campaign, we propose ‘Validator Settlement 2.1 - APR Boosting’ to elevate the utility of the XPLA token even further.

2. Proposal Details: Validator Settlement 2.1 - APR Boosting

The core of this proposal is to maintain the basic framework of the existing “Validator Settlement 2.0” while directly supporting the increase in XPLA token utility.

  • Maintain the Basic Structure of Existing “Validator Settlement 2.0”:
    We will retain the advantages of the 2.0 program, which is currently operating successfully.
  • Increase the Contribution Fee Allocated to Transaction Fees:
    To further strengthen the operational stability of validators and provide greater benefits to XPLA contributors, we are proposing to increase the allocation of the Contribution Fee to directly boost the staking(delegating) APR.
  • Funding and Distribution Plan:
    • Budget: 30,000,000 XPLA sourced from Ecosystem 2 wallet (xpla12prteq09vtttn2508gwev2ykal06jw69vtmvyu).
    • Schedule: Non-linear distribution over 12 months.
    • Details: 
      • The specific distribution method will be announced within one month after the proposal passes, taking into account market conditions and the level of ecosystem activity to derive the most efficient approach.
      • The allocated budget will be sourced directly from current circulating supply, ensuring that no additional token unlocks are required and that there is no associated risk of increasing circulating supply.

3. Expected Effects

This restructuring is not just a simple enhancement of XPLA token utility; it is expected to bring the following positive ripple effects to the entire XPLA ecosystem.

    • Increase XPLA Utility and Value:
      Validator Settlement 2.1 is expected to directly enhance token utility, improve capital efficiency for validators and delegators, and support value accrual to active network participants.
  • Strengthened Participation of Validators and Stakers(Delegators):
      • The enhanced APR will help validators operate more stably and strengthen their motivation to contribute to the whole ecosystem.
      • A higher APR will attract more stakers(delegators) to the XPLA mainnet, promoting decentralization and network strengthening.
  • Expansion and Activation of the XPLA Ecosystem:
    • An attractive APR will be a strong factor in enticing new DApp and developers to join the XPLA ecosystem.
    • Increased DApp onboarding will lead to an increase in the number of transactions, further enhancing the activity of the XPLA mainnet.
  • Formation of Virtuous Cycle:
    We can build a strong virtuous cycle that leads to : XPLA token utility increase ➡️increased staker inflow ➡️strenghtened network security ➡️increase DApp onboarding ➡️transaction activation ➡️XPLA token utility increase ➡️and so on..

4. Conclusion

This is a crucial step towards maximizing the utility of the XPLA token, providing greater benefits to all ecosystem participants, and ultimately making the XPLA ecosystem stronger and more sustainable, marking another significant step towards achieving our goal of “Make XPLA Great Again”.