Basket Construction
Required items for the basket and their quantities are calculated based on the predefined distribution of NFT supply ("planned distribution") and eligibility determined at the start of each Item Fusion round.
Basket composition
NFTs recorded in the Item Pool compose the basket only if they meet specific eligibility criteria. Items are included when their circulation supply equals or exceeds 50 times their required quote amount.
New items introduced to the Item Pool will be included in future baskets only after meeting this eligibility threshold.
The basket composition is locked at the start of each Item Fusion round and remains unchanged throughout that round.
Weights applied to the basket items
Weight represents the ratio of an individual NFT’s maximum supply to the total maximum NFT supply of all eligible items in the basket.
For example, if Item A has a maximum supply of 100 and the total maximum supply of all eligible items in the basket is 1,000, the weight applied to Item A is 10%.
Quotes for the basket items
Quote reflects the required amount of an eligible item, calculated using the NFT's weight.
Total quotet for the basket
Total quotet represents the sum of all individual item quotes for eligible items in the basket, at time t.
This is determined at the start of each Item Fusion round based on which items meet eligibility criteria at that moment. Between rounds, Total quotet can increase, decrease, or remain stable depending on basket composition changes.
Factors Affecting Total quotet
NXPC Fission
When users redeem NXPC for NFTs, item circulation supply increases.
Items previously below the circulation threshold may become eligible for future baskets, potentially increasing Total quotet.
Item Fusion
When NFTs are exchanged back into NXPC, item circulation supply decreases.
Items may lose eligibility if their circulation drops below the circulation threshold, potentially decreasing Total quotet.
New Items Added to Item Pool
New items affect the NFT/NXPC Exchange Ratet but only affect Total quotet if they meet eligibility criteria.
If new items qualify for basket inclusion, Total quotet increases.
If new items don’t meet eligibility criteria, Total quotet remains unchanged despite Item Pool expansion.
Total Exchangeable NXPCt
Total Exchangeable NXPCt=NFT/NXPC Exchange RatetTotal quotet
Total Exchangeable NXPCt represents the total amount of NXPC exchanged for the basket at time t.
The amount of NXPC exchangeable with Total quotet is calculated using the NFT/NXPC Exchange Ratet, which determines the exchange rate between NFTs and NXPC. This calculated amount becomes the Total Exchangeable NXPCₜ for the relevant Item Fusion round. Once the basket is fully sourced and reward calculations are finalized, each user receives a portion of the Total Exchangeable NXPCₜ based on their Participation Rate. (For additional information on Participation Rate, please refer to Section Participation Rate)
For example, if the total number of NFTs required for the basket at time t (Total quotet) is 1,000 and the current NFT/NXPC Exchange Rateₜ is 10, then the Total Exchangeable NXPCₜ would be 100 (1,000 NFTs ÷ NFT/NXPC Exchange Rateₜ 10 = 100).
When new items are introduced to the Item Pool, the NFT/NXPC Exchange Ratet increases (as explained in Section NFT/NXPC Exchange Rate). This causes the Total Exchangeable NXPCt to decrease if the Total quotet remains unchanged since a higher exchange rate means the same number of NFTs converts to less NXPC.
The protocol truncates the Total Exchangeable NXPCt calculation to 18 decimal places. As a result of this truncation, the actual NXPC amount users receive may differ from the theoretical amount calculated using the NFT/NXPC Exchange Ratet.
All examples are for illustration purposes only and do not reflect actual information.
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