Digitex

in #digitex6 years ago

3

  1. Introduction
    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.
    But despite lower costs, transaction fees are still significant on high volume, low
    profit margin futures trading strategies. They act as a massive brake on the potential
    liquidity of futures markets by converting marginally profitable strategies into
    losing strategies after commissions.
    Transaction fees are eliminated on the Digitex Futures Exchange by creating an
    Ethereum based token, called the DGTX token, and using it as the native currency of
    the exchange. All profits, losses, margin requirements and account balances are
    denominated in DGTX tokens, meaning that traders must own DGTX tokens to
    participate in the commission-free, 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.
    Instead of penalising active traders for providing liquidity, this brand new revenue
    model imposes a small inflationary cost on all token holders on the understanding
    that commission-free and liquid markets will create demand for the DGTX token
    from traders that is greater than the inflationary cost of funding the exchange.
    Another boost to liquidity will come from the trustless nature of the Digitex Futures
    Exchange. Unlike other futures exchanges, traders on Digitex will be able to trade
    without having to trust the exchange with their money. Account balances are held
    by a decentralized, independent smart contract on the Ethereum blockchain, not by
    the 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 does not have physical possession of
    the funds and at no point does the exchange hold anyone’s private keys.
    New token issuance is done democratically by all DGTX token owners using
    Decentralized Governance by Blockchain. They will collectively decide how
    many new tokens to issue and when, in order to cover the operational costs of
    running the exchange. Maintaining the futures exchange is in the best interests of all
    DGTX token owners because the exchange creates demand for the DGTX token and
    gives the token its utility and value.
Sort:  

Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.digitexfutures.com/whitepaper/Digitex-Whitepaper.v.1.1.pdf