GLXYC The Native Token

At the heart of the XSPACE Protocol ecosystem is its native token, GLXYC (Galaxy Coin). Designed as a utility, governance, and transactional token, GLXYC powers the entire protocol and its various applications, including the tokenization of real-world assets (RWAs), decentralized governance, staking, and liquidity provisioning. With a carefully designed tokenomic model, GLXYC ensures stability, incentivizes network participation, and supports long-term growth of the ecosystem.

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4.1 Use Cases of GLXYC

GLXYC is more than just a transactional medium—it serves as the lifeblood of the XSPACE Protocol and the cornerstone for a variety of activities within the ecosystem.

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Key Use Cases

1. Transaction Medium:

   • GLXYC is used to pay transaction fees across the XSPACE network, from token transfers to executing smart contracts.

   • Its high-speed and low-cost nature makes it suitable for microtransactions and high-frequency trading.

2. Asset Tokenization:

   • Users must hold GLXYC to tokenize real-world assets (e.g., minting tokens for gold or real estate).

   • GLXYC acts as collateral during the tokenization process, ensuring compliance and stability.

3. Decentralized Finance (DeFi):

   • GLXYC can be staked, borrowed, or used as collateral in DeFi applications built on the XSPACE Protocol.

   • Enables access to liquidity pools, yield farming, and asset-backed lending platforms.

4. Governance:

   • GLXYC holders can participate in protocol governance by voting on proposals such as upgrades, fee structures, and custodian approvals.

5. Ecosystem Payments:

   • Within Galaxy City, GLXYC is used as a currency for utilities, taxes, property payments, and services.

   • Businesses in Galaxy City accept GLXYC for transactions, making it the de facto currency for urban operations.

6. Rewards and Incentives:

   • Validators and delegators earn rewards in GLXYC for securing the network.

   • Users receive GLXYC as incentives for participating in governance, staking, and liquidity provision.

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Illustrative Table: Use Cases of GLXYC

Use Case	Description
Transaction Fees	Paid for all transactions and smart contract executions on XSPACE.
Asset Tokenization	Required for creating and managing tokenized assets (e.g., gold, real estate).
DeFi Applications	Used in staking, lending, borrowing, and liquidity pools.
Governance	Enables token holders to vote on protocol decisions and upgrades.
Galaxy City Currency	Used for payments, services, and utilities within Galaxy City.
Validator Rewards	Distributed to validators and delegators for securing the network.

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4.2 Token Economics

The economic model of GLXYC has been meticulously crafted to ensure sustainability, long-term value growth, and utility within the ecosystem. GLXYC follows a deflationary tokenomics model, combining capped supply with mechanisms to increase scarcity over time.

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Key Metrics

• Total Supply: 1,000,000,000 GLXYC (fixed cap).

• Token Distribution:

  • 30% (300M): Ecosystem development (grants, partnerships, and onboarding projects).

  • 20% (200M): Staking rewards and validator incentives.

  • 20% (200M): Founding team and advisors (vested over 5 years).

  • 10% (100M): Liquidity provisioning (centralized and decentralized exchanges).

  • 20% (200M): Public token sale and community adoption.

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Deflationary Mechanisms

1. Transaction Fee Burning:

   • A portion of every transaction fee is burned, permanently reducing the circulating supply of GLXYC.

   • This creates a deflationary effect over time, driving scarcity and increasing token value.

2. Staking Lockup:

   • GLXYC tokens staked for validator participation are locked for a specific period, reducing circulating supply and stabilizing market dynamics.

3. Governance-Driven Supply Adjustments:

   • The community can vote on additional burning events or changes to the staking reward ratio to control inflation.

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Incentive Alignment

• Validators and delegators are incentivized with GLXYC rewards, ensuring active participation in network security.

• Liquidity providers earn GLXYC in return for contributing to token pools, boosting ecosystem liquidity.

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Tokenomics Summary Chart

Metric	Details
Total Supply	1,000,000,000 GLXYC (fixed)
Inflationary Rewards	Validator and staking rewards (from the staking pool).
Deflationary Mechanisms	Burning transaction fees and governance-directed burn events.
Liquidity Incentives	Allocated for decentralized and centralized exchange liquidity pools.
Ecosystem Development	Funds to onboard partners, developers, and applications.

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4.3 Governance and Staking Mechanisms

GLXYC is not just a utility token—it is also a governance and staking tool that empowers the XSPACE community to shape the protocol’s future. By staking GLXYC, users can secure the network, earn rewards, and participate in decision-making processes.

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4.3.1 Governance

XSPACE operates a Decentralized Autonomous Organization (DAO) model for governance. GLXYC token holders form the backbone of the governance system, enabling a truly decentralized and community-driven ecosystem.

Key Governance Features:

1. Voting on Proposals:

   • GLXYC holders can propose and vote on key decisions, including:

     • Upgrades to the protocol (e.g., new features, scalability improvements).

     • Fee structure adjustments (e.g., transaction fees, staking rewards).

     • Approval of custodians for tokenized real-world assets.

     • Allocation of ecosystem funds (e.g., grants, partnerships).

2. Weighted Voting:

   • Votes are weighted by the number of GLXYC tokens held or staked.

   • This ensures that those with the highest investment in the ecosystem have a proportional say in its development.

3. Transparency:

   • All governance proposals, voting results, and implementation details are stored immutably on the XSPACE blockchain.

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4.3.2 Staking Mechanisms

Staking is a critical feature of the XSPACE Protocol, ensuring network security and rewarding active participants. GLXYC holders can stake their tokens directly or delegate them to validators.

Staking Features:

1. Validator Staking:

   • Validators are required to stake a significant amount of GLXYC to participate in the network.

   • Validators earn rewards for producing blocks and confirming transactions, proportional to their staked amount.

2. Delegator Staking:

   • Token holders who do not run nodes can delegate their GLXYC to trusted validators.

   • Delegators earn a share of the rewards earned by the validator.

3. Rewards Distribution:

   • Staking rewards are distributed periodically in GLXYC, incentivizing long-term participation.

   • Reward rates are dynamically adjusted based on network activity and staking participation.

4. Slashing Mechanism:

   • Misbehaving validators (e.g., double-signing or downtime) are penalized through a slashing mechanism, which reduces their staked GLXYC and rewards pool.

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Staking Benefits Table

Feature	Description
Network Security	Validators secure the network by validating transactions and blocks.
Passive Income	Delegators earn rewards by staking their GLXYC with validators.
Long-Term Incentives	Staking reduces circulating supply, stabilizing the token's market value.
Community Governance	Stakers actively participate in voting and shaping the ecosystem.

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Conclusion of GLXYC: The Native Token

GLXYC is the engine that drives the XSPACE Protocol. Its diverse use cases—ranging from transaction fees and asset tokenization to governance and staking—make it an indispensable part of the ecosystem. With a deflationary tokenomic model and robust governance mechanisms, GLXYC ensures the long-term success of the XSPACE Protocol while empowering its global community of participants.