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.

---