Zero Commission, Shaking Up The Crypto Futures Exchange Market

For the first time, traders can engage in highly active, short term trading strategies without being penalized by volume based commissions that make it impossible to make a profit. Zero commission trading on the Digitex Futures Exchange is not a temporary free trial or a marketing ploy to attract traders and then start charging them later.Digitex’s commission-free model is sustainable indefinitely, regardless of how many traders there are. Traders on Digitex’s futures markets can take single-tick profits and losses without any edge working against them. There is no reason why a competent and disciplined trader cannot make consistent profits because unlike any other fee charging exchange, on Digitex there is no mechanical edge built in to the system that is constantly working against you.

On Digitex you can keep edging forwards and grinding out consistent small profits that don’t get eaten up by fees.

Digitex can operate indefinitely without charging any transaction fees or withdrawal fees by utilizing its own native currency, called the DGTX token. To use the Digitex Futures Exchange you must have a balance of DGTX tokens in your trading account and your futures trading profits and losses are denominated in DGTX tokens. You are trading the Bitcoin/US Dollar futures market but you are winning and losing DGTX tokens, not BTC.This means that all traders must own DGTX tokens to use the Digitex Futures Exchange. This creates demand and utility for the DGTX token, which allows the exchange to cover its costs through an autonomous token issuance system that mints a small number of new DGTX each year and sells them to traders through token sales. How many DGTX are created to cover costs is determined by all DGTX token owners through a democratic voting system.

Adam Todd, Founder & CEO of Digitex Futures.

Digitex’s token issuance system removes the cost burden of the exchange from active traders. This is crucial because it allows these short term scalpers to step up into hyper active mode which they cannot do when they must pay volume-based commissions. Truly commission-free markets thus become very liquid which in turn attracts longer term traders who can easily enter and exit large positions with little to no slippage.The cost burden of running the exchange is therefore removed from the most active traders and is instead shared by all DGTX token owners in the form a small inflation rate. By using Decentralized Governance by Blockchain, the DGTX owners determine how many new tokens are issued and can therefore control the inflation rate and set it to something they are happy with.

For example, let’s use the following assumptions:

• There are 100,000 users on the Digitex Futures Exchange
• DGTX is currently trading at $1.00
• The exchange needs $5m to cover its operational, development, support and marketing costs for the next 12 months.

Using the above assumptions, the token issuance system would submit a proposal to mint 5m new DGTX tokens ($5m needed / 1 DGTX = $1.00). All DGTX token owners would vote on this proposal and if it passes 5m new DGTX tokens will be created and sold in a token sale at $1.00 per token. This raises $5m of revenue which funds the ongoing costs of the exchange for a further 12 months without needing to charge any trading fees on any trades.An increase in supply of 5m new DGTX tokens on a total DGTX supply of 1 billion DGTX is an inflation rate of 0.5%. The theoretical effect of this will be a drop in price of DGTX from $1.00 down to $0.995.