🪙esXB Token
xBank currently does not have any governance token. However, xBank has plan to launch the governance token in Q4 of 2023. In the meantime, we plan to incentivize participation in our protocol through esXB token.
What is esXB Token?
esXB token represents an IOU that can later be converted to the xBank’s Governance token. It posses two key utilities:
Utility #1: Conversion to xBank's Governance Token
esXB token can be converted up to 3.5% of the Governance token total supply — the protocol Governance token. The exact percentage will depend on the traction of the protocol in ~6 months after launch.
Epoch 1:
We took a first snapshot on 30th September 2023 and based on the statistics at the time of the snapshot, we determined the total tokens allocated to the users. Governance token will be allocated on a pro-rata basis based on the esXB held by users.
Epoch 1 Conversion Schedule
The % of the Governance token unlocked will be based on the simple average of the Deposit TVL + Total Borrowed Amount over the 14 days prior to snapshot. Below is the table summarizing the percentage of token allocated based on the deposit & borrow requirements.
| Deposit & Borrow Requirements ($Mn) | Governance Token Allocated |
|---|---|
Base | 1.0% |
$5.0 Million | 1.5% |
$7.5 Million | 2.0% |
$10 Million | 2.5% |
For example, if 14-day avg. prior to 30th of September, xBank has the following stats:
Total Deposits: $7.25 Mn
Total Borrowed: $3.00 Mn
In this scenario, Deposit + Borrowed = $7.25 + $3.00 = $10.25 Mn, which exceeds the 10Mn threshold. Thus, the whole 2.5% will be unlocked and awarded to the esXB holders.
Based on the above stats, all the esXB holders will receive 1% of the total Governance token supply. Your exact share of the Governance token will be calculated based on the formula:
Epoch 2:
Given the state of the market and the zkSync network, we extended our liquidity mining period for another 3 months (October 2023 - December 2023).
Epoch 2 Conversion Schedule
esXB earned during Rewards Epoch 2 will entitle you to convert to Governance token. Now that we have stats from Epoch 1, we will reduce the requirements to reflect the level of activities. The new conversation schedule for Epoch 2 are shown in the table below:
| Deposit & Borrow Requirements ($Mn) | Governance Token Allocated |
|---|---|
Base | 1.0% |
$1 Million | 1.5% |
$2 Million | 2.0% |
$3 Million | 2.5% |
Utility #2: Airdrop of zkSync’s Governance Token
As previously mentioned, we are committed to sharing the majority of any airdrops to our early adopters. Although Matter Labs has not confirmed an airdrop of their native tokens, they have confirmed their intention to launch a governance token in the future. If xBank receives a portion of this governance token airdrop, we will distribute them to our community as bonus incentives, with a significant portion retroactively allocated to our early adopters.
Here is our distribution plan for the airdrop:
40% of the airdrop will be allocated to esXB token holders.
40% will be reserved for future incentives and initiatives.
The remaining 20% will be allocated to the development fund.
Emission Rate
esXB will be emitted at the rate of ~0.127 esXB / second, and will be allocated to the different participants according to the table below:
| Participant | Asset | % of Allocation |
|---|---|---|
Lender | ETH | 16% |
Lender | USDC | 24% |
Borrower | ETH | 24% |
Borrower | USDC | 36% |
esXB earned from Epoch 1 and Epoch 2 will share any zkSync airdrops received.
Note: esXB token will be non-transferable and cannot be purchased/sold in an open market. It can only be acquired through participation in the platform.
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