Special Drawing Rights (XDR)

What is the pegging mechanism of XDR to the IMF's Special Drawing Rights (XDR)?

XDR is pegged to the IMF's XDR, representing a diversified portfolio of major international currencies.

How is XDR created on Splendor Blockchain?

XDR is minted as a reward to miners for the computational power and storage they provide to the network. XDR is fully backed by the SPL reserve pool.

Can XDR be used for international transactions?

Yes, XDR serves as a stable and reliable alternative for international transactions, providing a hedge against currency risks.

XDR Interest Rate:

How does the XDR interest rate program work on Splendor Blockchain?

Users participate by interacting with the interest-paying smart contract, registering their commitment with an initial amount and timeframe. The 8% annual interest rate, paid daily, is applied to the initial amount.

What happens if a user moves XDR tokens before the committed period concludes?

If a user moves XDR tokens before the committed period concludes, the interest rate payments cease. The mechanism encourages users to honor their commitment for uninterrupted interest payments.

Is the 8% interest rate applied to the entire XDR balance or the initially committed amount?

The 8% interest rate is applied exclusively to the initially committed amount communicated to the smart contract during the registration process.

Can users choose different lockup periods for the XDR interest rate program?

Yes, users can choose lockup periods ranging from 1 to 12 months based on their investment strategy and financial goals.

How does the XDR interest rate program contribute to the overall stability of the Splendor ecosystem?

The XDR interest rate program incentivizes users to commit to longer lockup periods, promoting stability in the ecosystem by reducing token volatility and enhancing long-term commitment.