# xD

#### 1. What Is xD

xD is the yield-locked and governance-enabled version of D.

When you lock your D tokens, they convert into xD, a non-transferable token that boosts your earnings and gives you direct voting power in the xDFi ecosystem.

xD transforms D from a passive holding into an active position of yield and influence.

> Lock D → Earn more. Decide more.

***

#### 2. Why Lock D for xD

xD rewards long-term commitment with two core benefits — higher yield and real decision-making power.

| Benefit          | Description                                                                                                                     |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------------- |
| Boosted Rewards  | Lock D to increase your D rewards by up to 2.5×, depending on your lock duration.                                               |
| Governance Power | Use xD to vote on key economic parameters — such as D distribution ratios, node additions/removals, and emission curve updates. |
| Priority Access  | Access early synchronized pools, builder incentives, and ecosystem airdrops reserved for long-term participants.                |

The longer you lock, the more you earn — and the more influence you hold.

***

#### 3. Locking Mechanics

Locking D converts it into non-transferable xD, granting a proportional yield boost based on duration — capped at 2.5× for a 12-month lock.

Shorter locks scale linearly relative to that maximum.

| Lock Duration      | Multiplier | Notes                                       |
| ------------------ | ---------- | ------------------------------------------- |
| 1 Week             | 1.05×      | Minimal boost, high flexibility             |
| 1 Month            | 1.2×       | Short-term participation                    |
| 3 Months           | 1.6×       | Balanced yield and liquidity                |
| 6 Months           | 2.0×       | Strong long-term commitment                 |
| 9 Months           | 2.3×       | Extended holding tier                       |
| 12 Months (1 Year) | 2.5×       | Maximum multiplier & full governance weight |

> Formula:\
> Boost = 1 + (1.5 × LockDuration / 12 months)\
> (Capped at 2.5× total boost)

Once locked, D becomes xD, which cannot be traded or transferred until the lock period ends.

This ensures only committed participants receive the highest yield multipliers and governance influence.

***

#### 4. Governance Power

xD holders govern xDFi’s core economic parameters and network evolution.

Your voting weight scales with your xD balance and lock duration.

xD holders vote on:

* D distribution ratios between liquidity providers (40%), node operators (20%), and builders (10%)
* Node management: addition or removal of the 33 Settler Nodes
* Emission adjustments: tuning release rates and synchronization frequency
* Community proposals: ecosystem integrations, fee routing, and new feature activations

> Those who commit capital decide where capital flows.

Governance is not symbolic — it directly defines how yield is created and distributed.

***

#### 5. Network Alignment

xD aligns every type of participant around one loop of incentives:

| Participant               | Incentive     | Benefit                                                     |
| ------------------------- | ------------- | ----------------------------------------------------------- |
| Liquidity Providers       | Lock D for xD | Boosted rewards up to 2.5×                                  |
| Node Operators (Settlers) | Hold xD       | Governance weight & epoch yield                             |
| Builders / dApps          | Accumulate xD | Share in ecosystem rewards & incentive allocation influence |

By concentrating yield boosts and governance power in long-term hands, xD ensures the network rewards those who actually sustain it.

***

#### 6. Economic Impact

Locking D for xD introduces structural scarcity and long-term stability:

* Locked D is temporarily removed from circulation.
* More locked supply means less sell pressure.
* High xD participation makes buyback burns more impactful for all holders.

xD is the balancing mechanism between growth and scarcity — increasing individual yield while strengthening the entire token economy.

***

#### 7. Summary

xD turns D into a high-leverage position within the xDFi ecosystem:

| Action    | Result                                     |
| --------- | ------------------------------------------ |
| Lock D    | Receive non-transferable xD                |
| Earn      | Up to 2.5× higher D rewards                |
| Vote      | Influence how D is distributed and used    |
| Hold Long | Contribute to scarcity and price stability |

> xD = Yield Multiplier + Governance Power + Scarcity Effect.

***


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