# How It Works

<mark style="color:green;">**Step 1:**</mark> Connect your [Backpack](https://backpack.app/) wallet to the X1 blockchain.\
\ <mark style="color:green;">**Step 2:**</mark> Create a new token or find one you like.\
\ <mark style="color:green;">**Step 3:**</mark> Buy it on the bonding curve.\
\ <mark style="color:green;">**Step 4:**</mark> Sell it at any time to lock in profits.\
\ <mark style="color:green;">**Step 5:**</mark> If enough people buy it, it reaches a market cap milestone.\
\ <mark style="color:green;">**Step 6:**</mark> It gets migrated to <mark style="color:green;">XenDEX</mark>, liquidity is added and burned forever.<br>

Once <mark style="color:green;">market cap reaches $70,000</mark>, all remaining tokens and liquidity migrate to the DEX. &#x20;

We deposit <mark style="color:green;">$17,000 in locked liquidity</mark> that's burned forever to prevent rug pulls.&#x20;

We <mark style="color:green;">burn 100% of the XNT</mark> earned in trading fees, contributing to the deflation of XNT.&#x20;

The <mark style="color:green;">creator of a token</mark> that gets listed on the DEX receives a <mark style="color:green;">reward of 1%</mark> of the liquidity in XNT for their achievement.

\ <mark style="color:green;">**IMPORTANT:**</mark> There is currently no Oracle available for X1 and the market price of XNT is yet to be established. The smart contract owner holds administrative keys to adjust the XNT deposit threshold required to trigger liquidity pool creation on XenDEX. To ensure a path toward full decentralization, the contract includes a “Renounce Ownership” function. Once this function is called (likely within the first few weeks after launch), all control will be relinquished and the protocol will be fully decentralized.