Buybacks & Deflation

Through the RISE, Fenix will buyback and lock FNX every week from the open market. This means that Fenix will natively apply a deflationary force on emissions that simultaneously supports the price of FNX. With a 60% lock rate coupled to buyback and locks, our projections show that circulating supply inflation from emissions from the initial supply will be approximately 40% over 1 year. This is a significant reduction in inflation that comes without productivity loss.

This also provides a mechanism to combat supply changes across different phases of FNX demand. When rewards and emissions are high, we are likely to see more mercenary liquidity and higher sell pressure. As Blast Native Yield scales up with TVL, this will allow us to deploy even stronger buybacks to counteract this. Conversely, when there is lower demand buybacks will capture a higher amount of circulating FNX, further driving scarcity and supporting LP yields until higher demand returns.

This means Fenix enables:

• An adaptive system that automatically drives FNX scarcity and provides direct price support for LP yields and veFNX holder value through RISE buybacks.

• Simultaneous use of bought and locked supply to drive revenue and more locks from protocols and users to earn RISE rewards to boost productivity within the ecosystem.

Through a unique MetaDEX system that is not possible on other chains, Fenix will enhance value accrual to the FNX token and the capital efficiency to which FNX can generate value for the ecosystem.