Friction Finance
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    • xTao
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    • No mints. Ever
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  • Why do most DeFi protocols Mint tokens?
  • Why is this bad?
  • How xTAO solves this problem

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  1. Holder Safety

No mints. Ever

xTao has a total supply of 25m and this can never be changed.

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Last updated 3 years ago

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Why do most DeFi protocols Mint tokens?

Almost every DeFi protocol that offers farming / yield incentives needs a way to "create" tokens that can be used for rewarding farmers. When tokens are created, this process is done through a "Mint" function that essentially mints tokens into existence and increases the total supply.

Why is this bad?

Projects that use Minting functions are by definition, inflationary. Every time a mint happens the total supply of the token increases which also increases the circulating supply, dilutes holders value, and creates a sell pressure.

How xTAO solves this problem

All of xTAO's smart contracts are verified and can be transparently seen through BSC Scan. There is no mint functionality in any of our contracts and the total supply of Tao can never be increased.

xTAO farms and pools are self-sustainable from the token distribution mechanics which you can read more about .

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