> For the complete documentation index, see [llms.txt](https://onex-3.gitbook.io/onex-document/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://onex-3.gitbook.io/onex-document/coin/pillar-02-sem.md).

# Pillar 02 sem

## Core Concept

SEM allows large holders to exit their position **without selling a single ONEx token on the open market**. They receive a USDT-equivalent payout streamed over time, while their ONEx tokens are absorbed and recycled by the protocol.

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## SEM Launch Capacity

* SEM pre-seeded with **$1,000,000 USDT** from ICO raise at listing
* SEM Minimum Weekly Capacity Floor: **$100,000/week** (funded from Treasury if needed)
* Maximum weekly cap: MIN(Protocol Revenue × 30%, $500,000) — but never below $100,000

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## Eligibility

* Any wallet holding ≥ 50,000 ONEx
* Tokens must have been held ≥ 30 days (time-weighted)
* Maximum SEM exit per wallet: 500,000 ONEx per quarter

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## SEM Pricing

| Exit Size            | SEM Factor         |
| -------------------- | ------------------ |
| 50,000–100,000 ONEx  | 0.90× market price |
| 100,001–250,000 ONEx | 0.85× market price |
| 250,001–500,000 ONEx | 0.80× market price |

*Example: 200,000 ONEx at $1.50 market. SEM price = $1.275. Total payout = $255,000 USDT over 8 weeks. ZERO market impact.*

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## Payout Schedule

| Size                 | Payout Duration | Rate         |
| -------------------- | --------------- | ------------ |
| ≤ 100,000 ONEx       | 4 weeks         | 25%/week     |
| 100,001–250,000 ONEx | 8 weeks         | 12.5%/week   |
| 250,001–500,000 ONEx | 12 weeks        | \~8.33%/week |

***

## Token Disposition on SEM Exit

| Destination        | Proportion |
| ------------------ | ---------- |
| BURNED permanently | 40%        |
| Buyback Pool       | 30%        |
| Liquidity Pool     | 30%        |

***

## Why SEM Prevents Crashes

**WITHOUT SEM:** Whale (200,000 ONEx) sells on AMM → Pool ratio shifts → Price drops 10–30% → Cascade crash.

**WITH SEM:** Whale (200,000 ONEx) uses Synthetic Exit → 0 ONEx hits AMM → 0 price impact → 40% burned → Supply reduces → Price may increase due to deflation.

> SEM converts destructive market sells into constructive off-market exits that benefit all remaining holders.