🟢Passive Points

Earn Onyx Points by simply holding approved assets on XCN Ledger

Passive Points — Asset Holding Incentives

The Passive Points mechanism is designed to reward users simply for maintaining eligible digital assets in their self-custodied Web3 wallets. This approach incentivizes long-term alignment with the Onyx ecosystem by recognizing and rewarding passive asset holders who contribute to ecosystem stability without requiring active trading or liquidity deployment.

Eligibility Criteria & Wallet Scope

To qualify for Passive Points accrual, users must hold whitelisted assets—a curated list of tokens approved by the Onyx Foundation for point rewards—within non-custodial Web3 wallets. Supported wallets include widely-used browser-based solutions such as MetaMask, WalletConnect-compatible interfaces, and secure hardware wallets like Ledger and Trezor.

Importantly, any assets held within centralized exchange (CEX) accounts are categorically ineligible for point accumulation. This restriction ensures that all qualifying holdings are verifiably on-chain, transparent, and cryptographically linked to user-owned wallet addresses. This design choice also encourages decentralized custody practices and aligns user incentives with the ethos of DeFi sovereignty.

Mechanism of Point Accrual

Onyx utilizes a snapshot-based system to periodically capture wallet balances of whitelisted assets. These snapshots are taken at each block allowing the protocol to calculate time-weighted holdings for each address. This means that the longer a user holds a qualifying asset, the more Passive Points they accumulate, scaled proportionally to the quantity held.

For example:

• A wallet that holds 1,000 units of a whitelisted token for 30 continuous days will receive significantly more points than a wallet that intermittently holds the same token across a fragmented period.

• Short-term balance spikes intended to game the system (e.g., flash loans or momentary transfers) are neutralized by time-weighted averages and minimum holding thresholds.

Security and Anti-Sybil Protections

To maintain integrity, the system incorporates Sybil resistance mechanisms such as minimum balance thresholds, wallet linkage detection, and inactivity filters. Additionally, asset verification and tracking are performed using on-chain indexers and Merkle-proof-backed registries, ensuring that all point calculations are fully auditable and verifiable through trustless infrastructure.

Whitelisting Governance and Future Expansion

The list of eligible assets is governed by the Onyx DAO and can evolve over time based on community votes, market relevance, and strategic partnerships. New assets may be added to the whitelist through a formal proposal and review process, which considers liquidity, token utility, smart contract security, and ecosystem alignment.

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By rewarding users for simply holding assets in decentralized wallets, the Passive Points system promotes secure custody, reduces sell pressure, and reinforces a culture of long-term value alignment within the Onyx XCN Ledger ecosystem.