EFX & The Galaxy Pool
It is important to maintain liquidity in EFX, especially during the early days when
there is no listing on exchanges. Ideally, the following actions should always be
possible on the network:
- Workers are able to sell their EFX rewards for native tokens
- Requesters and network users are able to buy EFX
For a new token on the market this kind of liquidity can be hard to achieve and can
be hurt by speculative trading. The Effect Network will maintain a central pool of
tokens to provide liquidity, encourage adoption and stabilize network fees. This pool
is called the Galaxy Pool and consists of a mix of EFX and native tokens. Several
rules will drive the Galaxy Pool towards an equilibrium balance. These rules can later
be refined by means of governance. The Galaxy Pool ensures stable exchange rates
for users of the platform at all times. The pool is not suitable for day traders, as only
tainted coins can be bought. Any coin that is bought from the Galaxy will initially be
marked, a marked coin cannot be sold back to the pool. A marked coin is unmarked
(converted to a regular tradable EFX token) by spending it through an Effect service
contract. These are the service contracts from the tasks and service registry. This
protects the Galaxy Pool from external manipulation and keeps exchange rates
stable for Workers.
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