Thread by @CamelotDEX

Dear fellow knights,

Over the past few days, we've showcased some of our most exciting features for our V2, and we'll now wrap up with a final thread giving an overview of a very important part of our tokenomics, through the prism of our two tokens: $GRAIL and $xGRAIL

$GRAIL is Excalibur’s native emission token, and is a regular liquid ERC20 with a fixed maximum supply that will be reached in 4 years.

$xGRAIL, its counterpart, is a non-transferable escrowed governance token that can only be obtained through $GRAIL conversion.

$xGRAIL is not only a governance token, as its central use will be its ability to be allocated to special contracts, dubbed Plugins

The process consists of staking $xGRAIL into a central contract that will assign the deposited amount to a plugin, in exchange for various benefits

This choice of architecture allows us to have a substantially greater composability, and to be able to integrate community or partners' plugins while being able to leverage the allocated $xGRAIL with additional functionality (governance, airdrops...).

Some of those plugins will be natively integrated into our contracts right from our launch:

The first one of the list is the Dividends plugin. By allocating $xGRAIL to it, users will receive a daily share of the revenue generated by the platform as real yield.

The second native plugin, the Yield Booster, will leverage our yield-bearing spNFTs.

It will allow users to directly allocate their $xGRAIL to their staked positions in order to significantly improve their yield.

This $xGRAIL plugin ecosystem has been designed to expand over time, and some new ones are already being integrated by our team!

Combined with the addition of other plugins by the community or partners, this results in a token with multiple uses that can generate unique returns.

Both $GRAIL and $xGRAIL tokens will be distributed as farming rewards through our yield-bearing spNFTs.

$GRAIL can also be purchased freely on the market, unlike $xGRAIL, which will technically be illiquid since non-transferable.

$GRAIL can be freely and instantly converted to $xGRAIL any time, with a 1:1 ratio.

However, to convert $xGRAIL back to $GRAIL, users will have to go through a vesting process.
They will freely decide the vesting duration within a given range of 14 days to 6 months.

Consequently, the $xGRAIL ➡️ $GRAIL conversion ratio won’t be fixed, as it will increase proportionally with the chosen vesting duration:
- a minimum of 15 days of vesting for a 1:0.5 ratio
- a maximum of 6 months of vesting for a 1:1 ratio

However, it is important to note that during this redeeming process, a portion of the $xGRAIL being converted will be automatically allocated to the Dividends plugin, hence still generating revenue for the owner while being redeemed.

The last important point to mention is in the existence of a whole series of deflationary mechanisms made to actively control the supply of $GRAIL: burned $xGRAIL when redeemed for a lower ratio than 1:1, $xGRAIL plugins deallocation fee, buy back & burns from protocol earnings…

Together with the $GRAIL hard cap, its carefully crafted emissions and various additional mechanisms, we end up with a token whose circulating supply will be extremely well controlled, avoiding dilution for $GRAIL and $xGRAIL holders.

This is really just a quick overview of all Excalibur tokenomics, as all metrics, emissions and allocations will soon be communicated in more detail.

This thread series has now come to an end, but tomorrow there will be a surprise announcement, so stay tuned... and #worthy!