Blindex Tokens (BDX)
BDX is the value accrual and governance token of the entire Blindex ecosystem. All utility is concentrated into BDX
The Blindex token (BDX) is the non-stable, utility token in the protocol. It is meant to be volatile and hold rights to governance and all utility of the system. It is important to note that we take a highly governance-minimized approach to designing trustless money in the same ethos as Bitcoin. We eschew DAO-like active management such as MakerDAO. The fewer parameters for a community to be able to actively manage, the less there is to disagree on. Parameters that are up for governance through BDX include introducing additional BD-Stables, adding/adjusting collateral pools, adjusting various fees (like minting or redeeming), and refreshing the rate of the collateral ratio. No other actions such as active management of collateral or addition of human-modifiable parameters are possible other than a hard fork that would require voluntarily moving to a new implementation entirely. The BDX token has the potential of upside utility and downside utility of the system, where the delta changes in value are always stabilized away from the BD-Stables tokens themselves.
BDX supply is set to 21 million tokens at genesis, but the amount in circulation will likely be deflationary as the BD-Stables are minted at higher algorithmic ratios. The design of the protocol is such that BDX would be largely deflationary in supply as long as BD-Stables demand grows.
The BDX token’s market capitalization should be calculated as the future expected net value creation from the seigniorage of BD-Stables tokens in perpetuity, the cash flow from minting and redemption fees, and utilization of unused collateral. Additionally, as the market cap of BDX increases, so does the system’s ability to keep the BD-stables stable. Thus, the priority in the design is to accrue maximal value to the BDX token while maintaining BD-Stables as a stable currencies. As Robert Sam’s described in the original Seigniorage Shares whitepaper: "Share tokens are like the asset side of a central bank’s balance sheet. The market capitalisation of shares at any point in time fixes the upper limit on how much the coin supply can be reduced." Likewise, Blindex protocol takes inspiration from Sam's proposal as Blindex is a hybrid (fractional) seigniorage shares model.