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# System prepended metadata

title: Smart Contract Requirements

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---
title: 'Smart Contract Requirements'
--- Smart Contract Requirements
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## Table of Contents

[TOC]

## Beginners Guide
The CENX token is an ERC-20 token with many capabilities. At its core, the CENX token is an upgradable and pausable ERC-20 contract that also has the ability to burn tokens.

Interfacing with the ERC-20 contract is the CENX staking contract. The CENX staking contract enables users who are staking CENX to start receiving up to 25% of the transactional fees received on the Centralex exchange for trades.
 
The CENX token (CENX) has utility, staking rewards, and governance built in.
## All smart contracts need to be upgradeble 

## Utility 
The CENX token is the primary medium of exchange used for transaction fees on the Centralex exchange.

## Staking Rewards
Every transaction fee paid in CENX rewards stakers on the network with a specific percentage of the transaction fee distributed automatically to their staking wallet.  The staking rewards schedule will closely follow the bitcoin halving model where each year the amount of rewards returned is “halved”

The first year, the CENX staking rewards will be pegged to 25%, and then halved each year thereafter.  This makes the first few years of staking the most advantageous for early adopters.

The halving schedule will proceed as follows:



| Year | Staking Rewards % |
| -------- | -------- | 
| 1    |   25% | 
| 2    | 12.5% |
| 3    | 6.25% |
| 4    | 3.125%|
| 5    | 1.56% |

Staking rewards can amount to huge returns for stakers! If Centralex were to achieve Top 100 exchange status via $25,000,000 USD of transactional trading volume per day, with .1% trading fees,  the first year at 25% would result in $2,250,000 USD in staking rewards for stakers on the network. 

## Deflationary 
The CENX token is a deflationary token, and much like the staking rewards will follow a yearly “halving” burn rate.  Every transaction where CENX is used on the Centralex exchange for transactional fees will result in a specific percentage of the token supply being burned. The burn rate will start at 5%, and will halve each year thereafter. This decreases the total supply of CENX, thus increasing the scarcity of each token.

| Year | Deflationary Burn % |
| -------- | -------- | 
| 1    |   5% | 
| 2    | 2.5% |
| 3    | 1.25% |
| 4    | 0.625%|
| 5    | 0.3125% |

## Governance
CENX aims to be a community managed project, which means that CENX token holders will have governance and voting rights on future implementations of the CENX exchange. For example, CENX holders will be able to vote for upcoming coins, tokens and other projects to be listed on the Centralex exchange.

### Governance model CenX
1. User needs to lock their tokens
a. User needs to lock minimum 1000 CenX tokens to place 1 vote.
b. During this process user gets rewarded for locking their tokens (staking logic applies)
c. During this period the user can unlock their tokens, but this will result that their vote
becomes invalid.
2. Centralex will make an announcement where the user needs to lock their tokens minimum
24 hours prior to the vote. (clients can lock their tokens at any time given prior to the
announcement)
a. For this procedure when the user unlocks their tokens during the 24 hours lock
period their vote will become invalid.
3. Once the votes are completed the tokens needs to stay locked for an additional 24 hours to
complete the voting process.
a. Also, for these clients can unlock their tokens but this again will result in an invalid
vote.
4. Snap shots
a. Need to make a snapshot 24 hours prior to the vote for validation.
b. Need to make a snapshot 24 hours after the vote for validation.

**Example:**
Date, 16-11-2020 time 00:00. John is on Twitter and noticed a Centralex announcement that there will be a voting in 3 days' time (19-11-2020 20:00PM). 
In order for John to participate he need to go to the Centralex platform and locks his 1000 CenX tokens and is patiently waiting for the voting process to start. 
The Tokens need to be locked before 18-11-2020 @ 20:00PM (24 Hours prior the Vote). 

Once the Vote occurs at 19-11-2020 @ 20:00PM, a snap shot of the chain will be taken and votes will be counted. For the 24 Hours After the Vote has been concluded John needs to leave his tokens locked in order for the validation process to occur correctly. 
If John unlocks his token during the voting or validation period, his vote would become invalid.
The voting process should only be available through the Centralex platform!
* User needs to lock 1000 CenX tokens to get 1 vote.**(This can be changed)** 
* 1000 to 1 **(This can be changed)**
* 1 wallet address 1 vote **(This can be changed)**

## Trading discount


## Tokenomics

Blockchain base: Ethereum ERC 20 Token
Token Provider: Centralex Holdings Limited
Token Capacity: 500,000,000 tokens
Abbreviation: CENX
Initial Product Offering

| Reserved                |               Tokens |
| ----------------------- | --------------------:|
| 55% ILO & UniSwap LPool |     275,000,000 CenX |
| 5.5% Community Airdrop  |      27,500,000 CenX |
| 25% Founders & Team     |     125,000,000 CenX |
| 5% Bounty Program       |      25,000,000 CenX |
| 9.5% Legal & Marketing  |      47,500,000 CenX |
| **Total**               | **500,000,000 CenX** |


**Total Tokens in Circulation:**  300,000,000
**Initial Liquidity Offering Price:**  $0.03 per CENX
