7. Tokenomics

To ensure the sustainability and healthy development of the OracleX ecosystem, we introduce carefully designed tokenomics.

The ecosystem's native token, "ORX," plays a central role in value exchange and incentive design within the ecosystem.

7.1 ORX Token Utility

The ORX token is primarily used for the following purposes:

• Payment of API Usage Fees: Payment in ORX tokens is required when using the OracleX price prediction API. By paying according to usage, users can access real-time prediction data.

• Governance Participation: ORX token holders have the right to participate in important decision-making regarding the future of OracleX. Specific voting subjects include parameter adjustments for prediction models, changes to API usage fees, and approval of strategic partnerships.

• Rewards for Data Providers: Data providers who contribute to improving prediction accuracy are rewarded with ORX tokens according to their contribution. This mechanism encourages the provision of high-quality data and leads to the improvement of the overall value of the ecosystem.

• Rewards for Contributions to Prediction Accuracy Improvement: Users can earn ORX token rewards by providing feedback and suggestions that lead to improvements in the prediction model. This mechanism enables continuous improvement driven by the community.

7.2 ORX Token Supply and Distribution

The total supply of ORX tokens is fixed at 1 billion.

To ensure transparency and fairness in token distribution, it will be allocated as follows:

• Team: 7% Allocated to the team responsible for development and operations. This allocation is subject to a 1-year lock-up period, followed by a 3-year vesting period. This is a mechanism to encourage long-term commitment and support the sustainable growth of the project.

• Liquidity: 93% Reserved for market liquidity provision, ecosystem development, community rewards, and future fundraising. This is the most important part to support the healthy growth of the ecosystem and the stable value formation of the ORX token.

7.3 Buyback and Burn Mechanism

To maintain and improve the long-term value of the ORX token, a buyback and burn mechanism is introduced.

Specifically, a certain percentage of ORX tokens received as API usage fees will be periodically bought back from the market and then burned.

This mechanism reduces the circulating supply of ORX tokens, increasing scarcity and creating upward pressure on the token price.

This deflationary mechanism is a form of profit distribution to ORX token holders and contributes to the sustainable development of the ecosystem.