Contest sponsored by OriginalWork: Digitex
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Why this could be interesting?
The proposal is interesting because despite lower costs of speculating with futures prices of some asset, transaction rates remain significant in high volumes, low profit margin futures trading strategies. In this way they act as a massive brake on the potential liquidity of the futures markets due to the commissions.
Yes. That's right:
No transactions fee
Decentralize accounts
Autonomous Governation
That could be possible By minting its own native currency, the DGTX token, instead of charging transaction fees on trades. But then we'll talk a little more about this. For now, let's start by understanding what an exchange of futures is.
They are a legal promise/contract to buy or sell some financial instruments at a specific date in the future at a specific price. And play a critical role in stabilizing variable income markets.
Futures markets give traders the opportunity to trade prices without the high costs and risks of transferring, storing and paying in full for the actual underlying instrument on whose price they are trading. Whether on soybeans, gold, government bonds or Bitcoins, futures markets are a valuable financial tool for facilitating price trading by reducing friction and costs.
What role does Token DGTX play in the futures market with DIGITEX?
One of the ideas that the Digitex team has had is that the operational cost of the exchange's activities will be paid with the issuance and sale of new currency instead of charging a transaction fee on all contracts. The demand and market growth will more than offset the inflationary cost of issuing a new DGTX.
Changing the game
Transaction fees are eliminated on the Digitex Futures Exchange by creating an ERC20 token, called the DGTX token, and using it as the native currency of the exchange.
All operations within the Exchange are denominated in DGTX tokens. That means that traders must own DGTX tokens to participate in the zero-fees, trustless markets on Digitex. This creates demand for DGTX tokens from traders, enabling the exchange to replace revenue generation from transaction fees by creating and selling a small number of new DGTX tokens each year.
Supply and Distribution
During the initial sale, 1 billion DGTX Tokens will be made available. Out of this, 65% is up for sale to the public, 20% goes to Digitex Market Makers, 10% goes to the DIGITEX team and their advisors and 5% goes to referrals. Out of the 10% earmarked for the team and advisors, 100% of that is on a 3-year vesting schedule. Therefore, after the initial auction, only 90% of the total supply will be in circulation.
- Source: Digitex WhitePaper, page 6.
Source: Digitex WhitePaper, pages 8-9
The owners of DGTX using decentralized governance will collectively decide how many new DGTX are issued to cover the operational cost of running the exchange. And that will organically ensure that DGTX is well funded and operational.
Account balances are held by a decentralized, independent smart contract on the Ethereum blockchain, not by the Digitex Futures Exchange.
The exchange informs the account balance smart contract of a trader’s outstanding margin liabilities and trading profits/losses, thus keeping his account balance up to date, but the exchange doesn't have physical possession of the funds and at no point does the exchange hold anyone’s private keys.
We want to decentralize account balances, and allow traders to be able to use our exchange in a lifetime trading environment. - Adam Todd, CEO
Digitex Token Economy and how does differ from other Futures Exchanges?
They will be a self-sustaining and growing economy. Free trades will attract so many users, which will in turn increase DGTX liquidity as users purchase DGTX to continue using the Digitex Futures Exchange.
Unlike Digitex Futures Exchange, current exchanges have fees associated with trading futures contracts. On thin margins, these fees can easily make a profitable trader even a losing trader.
In the previous table we can compare the costs and benefits in an operation in the market between BitMEX and Digitex Futures Exchange. It is a great example of how a seller will be affected by a fee-free exchange alternative.
In the same transaction, the Digitex Futures Exchange trader obtained a performance 400% higher than an equal operation in BitMEX.
We can see that because Bitmex rates make it much more beneficial to use Digitex Futures Exchanges.
With free commissions it is possible for the trader can apply low profit and low risk strategies and still be profitable without the fees eating away at their profits.
Digitex Early Access - Don't miss the ship
Airdrop Contest Rules & FAQ:
You must click the verification email sent to you for your referrals to count.
Entries must be unique referrals/ip's & not duplicate entries.
The contest will run until we launch our exchange at the end of Q4 2018.
The top 10 users will get 100,000 DGTX Tokens each
The top 11 - 5000 users will get 1,000 DGTX Tokens each
This page can be accessed by checking the confirmation email sent to you.
Muy buen post amigo... Aunque me costo por la traducción ;)
Gracias bro. Es un post en ingles para un concurso que sale cada semana, si quieres por el discord te cuento, por si quieres participar en el que publiquen mañana.
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