Innovation Award: Huobi will offer $ 166 million for the creation of its own Blockchain.

The Huobi cryptocurrency exchange announced on Wednesday that it plans to allocate 30 million of its Huobi tokens (HT) to fund the creation of its own open source blockchain protocol for the company.

The fund, which currently has a value of around $ 166 million based on data from CoinMarketCap, will be used to launch the Huobi Chain Project, which also aims to establish a decentralized autonomous organization (DAO) in the patented blockchain chain , the company said at a press conference in Singapore.

The blockchain would serve as a platform for users to participate in initial coin collection (ICO) events, as well as to vote for the tokens that should appear on Huobi's list, said Chen Guang, director of the development arm of ecosystems of the company.

While the firm also plans to ultimately migrate its Exchange to the blockchain system to convert it into a decentralized exchange, such an idea is still uncertain as the measure would require higher levels of efficiency and security.

Even so, Chen believes that the future of the blockchain ecosystem should be a combination of centralization and decentralization.

He told CoinDesk:

"We want this to be a social experiment. It is not likely that in the future it will be totally decentralized. Therefore, it is important to find the balance that levels the two poles, which is the ultimate goal of this exploration. "

As such, Houbi is seeking external assistance to develop the new system by providing the 30 million tokens as incentives in several stages. In addition, Chen said, the Exchange will allocate a fraction of its annual income to the group, although it has not yet revealed the exact percentage.

The development process is expected to be completed in the next 18 months, and will be divided into eight phases; each of them, in effect, is a contest for developers to participate and compete for the tokens.

To have a process guide, the company will first establish a committee in the next two or three weeks that will develop a policy and self-regulation framework for the competition.

For his part, Chen said the company is currently talking to up to 10 well-known open-source blockchain project leaders who could help form the committee, but he declined to reveal the names he has on the list.

The committee will also nominate a list of candidates for the potential global leadership of the Huobi Chain Project. After the nomination, users will vote together for the preferred candidate using their Huobi Cards. The winner will lead the development of the project and the allocation of funds in each phase.

Although the exact amount of funds that will be provided for each stage is unknown, Chen said it is expected to increase as the project progresses.

Also at today's press conference, Cai Kailong, strategy director of Huobi Group, announced that the company is launching a new exchange (Exchange) in Australia with the expectation of a launch by the end of June.

In summary, the creators of blockchain-bitcoin solutions have the opportunity to participate in a project that can generate wealth, innovation and creativity of human talent can be at the service of creating viable solutions. It waits for new announcements.