Zero-Inflation Rebase

Fenix will be the first solidly-type DEX to deploy a performance based and non-inflationary rebase model that takes the best from rebasing (dilution protection to encourage more locks) and adds buybacks to make it even better. Revenue from both The RISE Incentives veNFT and native rebasing Blast yield will be used to buy back and lock FNX to be distributed as a lock bonus and as veFNX bribes for voters.

Fenix is targeted to achieve an average rebase rate of 15% and will change according to market conditions (between 10–30%). This model significantly enhances capital efficiency by only rewarding committed lockers and active voters who are providing value to the flywheel with a larger share of governance power over time and ensures that Fenix can focus emissions to LPs to maximise trading liquidity for fee generation.

This means that Fenix will deploy the most significant native buyback programme ever seen on a Solidly exchange. Automatically generating buybacks in perpetuity will increase FNX scarcity by removing supply from circulation. Our projections show that relative to a 60% lock rate, Fenix will automatically remove an additional ~30–40% of the projected circulating supply through the Zero Inflation Rebase. This mechanism is a significant step forward for emissions value stability and will strengthen the capacity for Fenix to support a healthy ecosystem long-term.