EXP to Token Conversion

At the heart of the tokenomics is an innovative conversion model that uses a Uniswap-style Automated Market Maker (AMM) to mediate the exchange between “points” and tokens. Key details include:

• Fixed Point Value: Each point is valued at a fixed USD rate (0.05 USD per point). This stable valuation serves as a basis for all conversions.

• Initial Pricing Setup:

  • The token’s initial market price is set at 1 USD per token, which corresponds to a conversion rate of 20 points per token.

  • The liquidity pool is initially seeded with the full token supply (or a designated portion) and a corresponding amount of points such that the initial point-to-token ratio is 20:1.

• Dynamic Conversion via AMM:

  • The conversion function is based on the constant product formula:

    Δx=x(1− y+Δy y ​ )= y+Δy xΔy ​

    where:

    • (x) is the current token reserve in the pool,

    • (y) is the current point reserve, and

    • (\Delta y) is the number of points being injected into the pool.

  • Each transaction increases the point reserve while decreasing the token reserve, which in turn drives up the token price according to the formula 𝑝

    𝑦 2 𝑘 p= k y 2, where 𝑘 k is the invariant ( 𝑥 × 𝑦 x×y).