Details of deb0x functionalities

Basics

The DBX token is the reward token distributed to those who use the deb0x protocol. DBX distribution is divided into one day long cycles - the first cycle reward pool being 10000 DBX tokens.

A new reward distribution cycle starts after 24 hours have passed since the last cycle and at least one message is sent - this means that there can exist gap cycles that do not contain any messages being sent throughout them, respectively do not distribute/unlock rewards (in which case, if multiple consecutive gap cycles pass, the distribution will resume with the reward amount that should have normally followed once a message has been sent).

The reward pool decreases by 0.2% per cycle, which means that after roughly 62 years of constant protocol usage the entire supply of ~5,01 mil. DBX tokens will be unlocked. DBX tokens held inside the protocol by users accumulate native token fees that are accrued every time messages are being sent.

Costs of sending a message

In order to send a message, the users pay an additional mandatory ~10% of the transaction cost. This represents the fee that will go towards reward pool out of which DBX token holders are being rewarded based on their accrued shares.

There are two other optional fees that the UI provider can set:

1. A percentage fee of the DBX value that the message is worth.

2. A native token fee paid straight upfront.

DBX cycle reward distribution

The calculation of DBX rewards is based on the gas consumed from sending the message, in other words, how computationally expensive the execution of the transaction is.

This can vary depending on how many recipients the user chooses to send the message to and whether it’s the first message of the cycle or not (multiple recipients as well as first message consume more gas).

After the cycle ends, the calculated user reward for that cycle is given by the total number of gas consumed divided by the number of gas consumed by the user. These rewards are claimable once the corresponding cycle ends.

Native token fee distribution

Each cycle will have its own pool of accrued native token fees that accumulate while messages are sent.

Per cycle, these are distributed based on how many locked DBX tokens a user has inside the protocol (locked - unclaimed DBX + staked DBX) added with how many DBX tokens were gained from sending messages in the corresponding cycle.

As a practical example, if only user A sends a message in the first cycle, it will receive all the native token rewards. However, if then only user B sends a message in the second cycle, granted user A does not claim its rewards, the native token fees distribution for cycle 2 is calculated as follows: user A has 10000 DBX tokens locked during cycle 2; user B gained all of the 9980 DBX rewards from cycle 2 -> user A receives 10000/19980 in fees and user B gains 9980/19980 fees - the amount “19980” is the total DBX unlocked up to cycle 2 (in our case 10000) + the DBX amount that will unlock after cycle 2 (in our case 9980).

Claiming rewards

Once a cycle ends, the rewards associated with it are ready to be claimed. A user claiming its rewards will be granted the entire amount of DBX tokens earned in all previous cycles. As a result of this, these tokens no longer generate native token fees for the user, including the cycle within which they were removed. In order to start gaining fees again, one must stake its tokens to do so.

Claiming native token fees

As in the case of claiming rewards, a user wishing to claim its accumulated fees will withdraw all the native tokens obtained beforehand.

Staking DBX tokens

DBX tokens that have already been claimed do not count towards protocol fees, in order to benefit from a passive income of native token fees, one must stake these tokens.

As soon as you stake DBX, the tokens will be locked during the whole cycle that follows (irrespective of whether the cycle is a gap cycle or not) while also starting to generate fees, given messages are sent.

Once that cycle ends, these tokens can be unstaked, returning them to the user. However, if the DBX is staked before the first message of the cycle, these can produce fees beginning with the current cycle if at least one message is sent and they can be unstaked at the end of the cycle respectively.

Unstaking DBX tokens

The staked DBX tokens that have reached the cycle in which they unlock as explained before can be unstaked, ending up in the possession of their owner.