xCETUS

Basic

• Name: Cetus Escrowed Token

• Ticker: xCETUS

• Chain: Sui

• Coin_type address on Sui: 0x9e69acc50ca03bc943c4f7c5304c2a6002d507b51c11913b247159c60422c606::xcetus::XCETUS

To promote decentralized community governance for the network, Cetus would allow holders to propose and vote on governance proposals to determine future features, upgrades and/or parameters of Cetus, with voting weight calculated in proportion to CETUS staked (which is then converted to non-transferable xCETUS, an escrowed governance token, to represent voting power). The right to vote is restricted solely to voting on features of Cetus; it does not entitle CETUS/xCETUS holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, or select the board of directors or similar bodies of these entities, or determine the development direction of these entities, nor does CETUS/xCETUS constitute any equity interest in any of these entities or any collective investment scheme; the arrangement is not intended to be any form of joint venture or partnership.

Users can get xCETUS by directly converting CETUS tokens, or through participating/contributing to the protocol (e.g. providing liquidity).

In addition to governance utilities, CETUS functions as a loyalty membership point which embeds a license granting active participants exclusive access to selected products or services. By holding the staked version (xCETUS), users may upgrade their loyalty tier (based on the amount of xCETUS held, as well as user activity). The premium loyalty tiers would allow users to get greater access to the ecosystem features and more preferential terms, for example certain premium functionalities, exclusive products/services, or greater or more unique transaction rewards.

Conversion & Redemption

CETUS and xCETUS can be converted with each other mutually, but the process and rules are different depending on the converting direction.

(1) Conversion from CETUS to xCETUS

CETUS can be instantly converted into xCETUS at any time. The conversion ratio is 1:1.

(2) Redemption from xCETUS to CETUS

The redeeming process to convert xCETUS back to CETUS involves vesting. The duration of the vesting is selected by the user. The conversion ratio will increase in proportion to the vesting duration selected by the user:

• The minimum vesting duration of 15 days gives a 1:0.5 conversion ratio

• The maximum vesting duration of 180 days gives a 1:1 conversion ratio

Users won't receive CETUS until the vesting period of the redemption is fully ended.

When the user chooses a vesting period that is shorter than the maximum allowed duration (conversion ratio < 1:1), the unclaimed remaining CETUS token will be forfeited when the vesting period ends and redemption process is done. The forfeited portion will be transferred to the Eco Treasury for consolidating insurance funds and long term community incentivization of the protocol.

(3) Cancel redemption

Before the vesting period of a redemption request comes to an end, users can freely cancel the redemption. In that case, the user will retrieve its entire amount of redeeming xCETUS, but no CETUS.

Utilities

(1) Staking

By converting CETUS to xCETUS, users automatically participate in staking and become eligible for xCETUS staking rewards.

These rewards are powered by the net profit from protocol fees (protocol fee earnings – third-party commission).

Currently, 50% of the net profit is distributed to xCETUS holders as staking rewards; the remaining 50% serves as protocol income (at this stage, protocol income is entirely allocated to repaying the Sui Foundation loan).

xCETUS staking offers dynamic, protocol-aligned yield — enabling holders to benefit directly from Cetus’s protocol growth.

(2) Governance

xCETUS also serves as the governance token within the Cetus Protocol.

Holders will be able to participate in governance by voting on key protocol parameters and strategic decisions — including topics such as mining reward allocation, fee structures, and other strategic updates.

Governance functionality will be introduced after the circulating supply reaches at least 90% of the CETUS total supply, to help ensure a fair and decentralized voting environment.

(3) Ecosystem token launch participation

xCETUS may be used as a key metric for participating in token launches and ecosystem campaigns.

Users’ xCETUS balance can serve as a whitelist requirement or help determine buying quotas in Cetus Launchpad events. For launchpad-related activities, xCETUS held in the redemption vesting period will also be counted toward eligibility and weight.

As a highly engaged community on Sui, xCETUS holders are also a popular target audience for potential airdrops or whitelist allocations from ecosystem partners. While airdrop rules and eligibility are determined independently by each project, xCETUS holders are well-positioned to benefit from long-term participation.