This proposal marks the most significant economic shift in the history of Project X. It seeks to transition the ecosystem from an inflationary growth phase to a deflationary value-capture phase.

End of Emissions: The mining rigs have stopped. Epoch 4 is complete, and the maximum supply of 16,180,339 DNA has been reached. Subject X can no longer mine new tokens.
The Need for Real Yield: To continue rewarding the loyal DAO members without diluting the supply, we must shift the source of rewards from "New Issuance" to "Ecosystem Revenue."
Technological Readiness: To support the future of Subject X (including X³ and beyond), the current NFT standard requires an upgrade to allow for dynamic metadata and on-chain evolution.

Proposed Reforms

Transition to Deflationary Staking (Real Yield):
- The "Mining" mechanism will be replaced by a "Buyback & Distribute" mechanism.
- Instead of minting new tokens, the DAO will use revenue generated from the ecosystem (royalties, products, tools) to buy DNA off the open market. (https://docs.projectx.mx/project-x/token-dna)
- This DNA is then deposited into the staking wallet for holders to claim.
- Impact: Every claim represents DNA taken out of circulation by the DAO. No inflation. Only consolidation.
Unchanged User Experience (UX):
- The "In-Wallet" staking system remains exactly the same.
- You do not need to lock your NFTs.
- Claims remain gasless.
- You continue using the same dApp you know and trust.
Upgrade to dyNFT (Dynamic NFTs):
- As a bonus to this economic upgrade, we will migrate the collection to the new dyNFT standard.
- This is a technical necessity that transforms your Subject X from a static asset into a dynamic, evolving asset. This prepares the ground for future utility and the upcoming Subject X³ evolution.

Benefits

Absolute Scarcity: Staking rewards no longer increase the total supply. The "Sell Pressure" from miners is replaced by "Buy Pressure" from the DAO.
Sustainability: The ecosystem becomes self-feeding. Revenue grows the DAO, the DAO buys DNA, holders get rewarded. A true flywheel effect.
Future-Proofing: Moving to dyNFTs ensures that Project X is running on the latest tech stack, allowing us to implement advanced features (like on-chain progression and mutations // just some examples) that were previously impossible.

Implementation Note

If passed, the implementation will take a bit of time to ensure the new smart contracts are deployed securely and the data migration to the dyNFT standard is flawless.