DEXON Foundation Last Modified 2019/3/4 v6.0

*This document describes the current plan and vision for the DEXON Network platform. While we intend to attempt to realize this vision, please recognize that it is dependent on a number of factors and subject to a wide range of risks. We do not guarantee, represent or warrant any of the statements in this document, because they are based on our current beliefs, expectations and assumptions, about which there can be no assurance due to various anticipated and unanticipated events that may occur. Please know that we seek to achieve the vision laid out in our whitepaper and website, but that you cannot rely on any of it coming true. Blockchain, cryptocurrencies, other aspects of our technology and these markets are in their infancy and will be subject to many challenges, competition and a changing environment.

## Token Allocation

* 75% for Miner’s Reward

For rewarding miners that actively participate in network consensus and smart contract

executions on DEXON Network.

* 25% for Genesis Supply

The genesis supply will be distributed to 4 parties, including DEXON Foundation / Team and

private sale token purchasers under different vesting schedules.

### Proof-of-Participation Model

* Validator Eligibility

A node is eligible to join as a validator if its DXN token deposit reaches the threshold of 1 million DXN. The deposit can come from the node itself or from any other accounts that support the node. It takes 24 hours for the deposit to become effective, and another 24 hours for deposit withdrawals to become effective.

* Symmetric Validator Power

The validating power and the probability to be selected as a block producer among all validators are both fair and symmetric, meaning that the expected mining rewards of each validator will be the same as well.

* Mining Rewards

A validator earns transaction processing fees, gas fees, and mining rewards when it actively produces blocks and acks to other blocks.

The formula of minting velocity is stated below:

Initially, v is 18.75% and will alter based on the total minted tokens under a half-life condition.

The relation between node mining velocity and minted tokens is shown below:

* v= 18.75% when mainnet launches.

* v= 9.375% after 1.5 billion DXN tokens are minted.

* v= 4.6875% after another 750 million DXN tokens are minted, and so on.

## Mining Rewards in Circulation

Now, let’s consider the influence of mining participation rate. For example, the genesis supply of DXN token is 1 billion, if 500 millions tokens are deposited in validating nodes, the mining participation rate will be 50%. So the total supply growth rate will be 18.75% * 50% = 9.375%.

The total mining rewards in circulation based on different participation rates (30%, 50%, 70%) is shown in the figure below:

Assuming the mining participation rate is fixed at 50%, r(total supply growth rate) per year is shown below:

## Genesis Allocation

As stated above, the genesis supply is 1 billion DXN and the allocation is shown below:

* 38.5% to Private Sale Purchasers (Genesis allocation, under 1-year vesting)

For building strategic partnerships with influential industry entities and growing the

### Private Sale (38.5%)

DEXON Foundation only allows world-famous VC firms, crypto funds, and DEXON DApps ecosystem partners to participate in the private sale. The goal of the private sale is to build up partnership relationships and grow the DEXON DApps ecosystem.

According to the purchased amount, a private sale purchaser will be granted an additional bonus of DXN tokens as shown in the figure below. Note that the bonus structure is tier-based and cumulative.

DXN tokens sold in private sale will be under a 1-year lock-up condition. 3 months after mainnet launches, 10% of DXN tokens will be vested, while each month thereafter, an additional 10% of DEX tokens will be vested in the following 10 months. The bonus portion will be vested 12 months after mainnet launch.

* 4-5M tier: 20% bonus, 2M DXN tokens

* 5M+ tier: 25% bonus, 12.5M DXN tokens

In total, the purchaser will get additional 17.5M DXN tokens as bonus. The vesting schedule would be as shown below:

### Public Sale (1.5%)

DEXON Foundation will sell DXN tokens to the public. The goal of public sale is to distribute tokens to early developers and users. The price of each DXN token in the public sale will be 0.2 USD.

- 40% to DEXON Foundation (Genesis allocation, 4-year vesting)

- 20% to Founding team (Genesis allocation, under 4-year vesting)

Assuming the mining participation rate is fixed at 50%, 30 years after mainnet launch, about 98.8% (3,953,284,807 / 4,000,000,000) of DXN tokens will be in public circulation. The long-term total token circulation chart is shown below:

For the first 16 quarters after mainnet launch, the composition of DXN token circulation is shown below:

For community building, corporate partnerships, developer conferences, DApps hackathons, business development, branding, etc.

### Operational Costs 20%

For daily operations / network governance / legal / accounting costs of DEXON Foundation.

## DISCLAIMER

11. Compliance by Users.

You acknowledge and agree that DEXON Foundation is not responsible for determining whether or which laws, rules, or regulations apply or may apply to your transactions (including, without limitation, any anti-money laundering laws, securities laws and tax laws). You acknowledge and agree that you are in compliance with all such laws, rules, or regulations as may be applicable to your transactions. Without limiting the foregoing, you acknowledge and agree that you are solely responsible for all tax obligations arising from your purchase of the DXN Tokens. You further acknowledge and agree that DEXON Foundation shall not be liable, whether directly or indirectly, for any of your tax obligations.

Applicable law, regulation, and executive orders may require DEXON Foundation to, upon request by government agencies, disclose information regarding your account(s). In the event such disclosure is compelled, you agree that DEXON Foundation may disclose information regarding your accounts. While DEXON Foundation will endeavor to, where commercially reasonable, give you prior notice of such disclosure, DEXON Foundation makes no guarantees that such prior notice will be made.