The backbone of Tacen Swap and Tacen Exchange is Project TXA’s hDEX framework, and the hDEX runs on the TXA token. To facilitate transactions on the hDEX, Settlement Data Providers process transactions, which involves users staking TXA to receive rewards. As exchange volume increases, so too do staking rewards.
However, we understand that people can feel nervous staking TXA in a network that they don’t have full confidence in. For that reason, we’re always looking for ways to improve our communication, transparency, and accountability.
We also think we can do even more, which has inspired us to create the Ecosystem Defense Fund.
The Ecosystem Defense Fund involves using 80% of all exchange profit generated between now and the end of Q2 2024 to purchase TXA tokens, which will subsequently be burned. This results in two direct effects:
Direct demand for the TXA token through company purchases.
Direct deflationary pressure on the TXA token through company token burns.
Given that the maximum supply of the TXA token is less than 50 million tokens, it is easy to imagine how drastically these actions could decrease the total supply of TXA tokens, thereby increasing the scarcity of TXA.
Every trade made on Tacen Swap and Tacen Exchange will result in company buybacks and burns of the TXA token. Meaning, every transaction made on Tacen Swap or Tacen Exchange results in increased demand and increased scarcity for TXA.
We are serious about strengthening the ecosystem that Tacen and Project TXA share, and there’s no better way to show that than to put our money where our mouth is.