OIP-68: Onyx Points Season 3, Layer 1 Incentive Expansion & Governance Activation

Onyx Points • Layer 1 Growth • Season 2 Airdrop • Season 3 Launch • Layer 1 Staking • Onyx DEX Liquidity Farming • Liquid Staking Governance

Building upon the Layer 1 Incentive Alignment established in OIP-66, this proposal advances the next phase of the Onyx ecosystem by consolidating community incentives around the Onyx Layer 1, rewarding existing participation, expanding staking incentives, activating governance participation, and increasing decentralized liquidity.

As Layer 1 adoption continues to accelerate, ecosystem incentives should increasingly reward activity that directly strengthens the network while expanding decentralized governance, liquidity, and long-term participation across the Onyx ecosystem.

Onyx Points Migration to Layer 1

Since the launch of the Onyx Points program, community participation has expanded significantly across the ecosystem.

As Onyx enters its next phase of Layer 1 growth, this proposal authorizes the migration of the Onyx Points program to operate exclusively on the Onyx Layer 1.

Future point accumulation will be earned through eligible Layer 1 activities, encouraging greater participation across the native network while simplifying the rewards program under a unified ecosystem.

The objective is to:

• Align community incentives directly with Layer 1 activity

• Increase network usage and on-chain participation

• Simplify the Onyx Points ecosystem

• Support sustainable long-term ecosystem growth

Conclude Onyx Points Season 2

This proposal authorizes the conclusion of Onyx Points Season 2.

To recognize community participation throughout Season 2, an allocation of 25,000,000 XCN will be distributed through a Season 2 airdrop to eligible participants based on the established distribution methodology.

The Season 2 distribution is intended to reward users who contributed to ecosystem growth while transitioning the rewards program into its next phase.

Launch Onyx Points Season 3

Following the completion of Season 2, this proposal authorizes the launch of Onyx Points Season 3.

Season 3 will operate exclusively on the Onyx Layer 1 and will introduce new opportunities for users to earn points through participation across the Layer 1 ecosystem.

Eligible activities may include:

• Onyx Liquid Staking participation

• Onyx DEX liquidity provisioning

• Additional Layer 1 ecosystem activities as introduced over time

The objective is to further align ecosystem incentives around sustainable Layer 1 growth while rewarding active network participants.

Layer 1 Incentive Alignment

As ecosystem activity increasingly shifts toward the Onyx Layer 1, staking incentives should continue evolving to prioritize participation on the native network.

This proposal authorizes an update to staking reward parameters by:

• Increasing Layer 1 staking APR to 30%

• Updating Ethereum staking rewards to further prioritize Layer 1 participation

These adjustments are intended to encourage greater network security, validator participation, and long-term ecosystem sustainability while maintaining support for existing Ethereum staking.

Onyx DEX Liquidity Farming

Healthy on-chain liquidity is essential to supporting efficient trading and ecosystem growth.

This proposal authorizes the activation of liquidity farming rewards on the Onyx DEX for the following liquidity pools:

• XCN / ETH

• XCN / USDC

Liquidity providers participating in these pools will become eligible to receive farming incentives, strengthening liquidity depth while encouraging greater utilization of the Onyx Layer 1 decentralized exchange.

Activate Governance for Onyx Liquid Staking

To further decentralize protocol governance and expand participation across the Onyx Layer 1, this proposal authorizes the activation of governance voting through Onyx Liquid Staking.

Layer 1 users participating in liquid staking will be able to participate directly in governance votes while continuing to secure the network through staked XCN.

This initiative further aligns ecosystem participation by enabling users to actively contribute to the future direction of the protocol while maintaining their staking position.

The objective is to:

• Expand decentralized governance participation

• Increase Layer 1 engagement

• Empower long-term ecosystem stakeholders

• Strengthen community participation in protocol development

Ratify Supporting Operational Adjustments

This proposal also ratifies any technical, operational, and governance adjustments necessary to:

• Complete the migration of Onyx Points to the Layer 1

• Distribute the Season 2 25,000,000 XCN airdrop

• Launch Onyx Points Season 3

• Update Layer 1 and Ethereum staking reward parameters

• Activate liquidity farming for the XCN/ETH and XCN/USDC pools on the Onyx DEX

• Enable governance participation for Onyx Liquid Staking

• Maintain continuity across the Onyx ecosystem

Conclusion

This proposal represents the next evolution of the Onyx ecosystem by continuing the Layer 1 Incentive Alignment strategy established in OIP-66 while expanding community rewards, staking participation, governance, and decentralized finance.

By concluding Onyx Points Season 2 with a 25 million XCN community airdrop, launching Season 3 exclusively on the Onyx Layer 1, increasing Layer 1 staking rewards to 30%, further aligning Ethereum staking incentives toward Layer 1 participation, activating liquidity farming for the XCN/ETH and XCN/USDC pools on the Onyx DEX, and enabling governance through Onyx Liquid Staking, this proposal strengthens the long-term sustainability, decentralization, and growth of the Onyx ecosystem.

• Vote “For” if you support the items outlined in this proposal.

• Vote “Against” if you prefer maintaining the current incentive structure or pursuing an alternative approach to ecosystem growth.