DIGITEX: A COMMISSION-FREE FUTURES EXCHANGE
INTRODUCTION
Could you ever believe that there would ever be an exchange that could offer its users commission-free trading on its platform in your life time? Hey calm down, don’t look at me that way! It's not a joke; it's very real. I know you would want to know “how they would cover their operational and maintenance cost for running the exchange if they won’t be charging any commission.” just be patient with me and go with me on this exposition as I unravel to you DIGITEX and the benefits it is bringing to the futures market.
ABOUT DIGITEX FUTURES EXCHANGE
Digitex is a no commission futures exchange that covers its operational cost by minting its own currency – DGTX. In other words, digitex allows its users to trade futures free of charge and covers every of its operational cost by issuing its own currency to its users.
“How does digitex achieve this feat?” You may ask. Just exercise a little more patience as I unravel to you the workings of digitex.
HOW DIGITEX WORKS
The digitex exchange will be run by one currency known as the digitex token (DGTX). DGTX is an ERC-223 ethereum based token. This token is the currency in which all margins, profits, losses and account balances will be denominated on the digitex futures exchange. All users that want to participate in the futures exchange market through digitex will be required to own the DGTX token. All price speculations and contracts entered will be made with this token.
How does owning the digitex token covers for the operational cost of the exchange?
Digitex users owning the token in order to participate in the commission free digitex exchange will create a demand for DGTX that will enable the exchange to replace revenue generation from commission by minting and selling its own currency to its users. Small number of the token will be minted each year according to the agreed volume by digitex users and sold to both new and existing users that need the token to participate in the futures market through digitex or that want to increase their stake in the futures market. The demand created by the exchange for the DGTX token is what will be used to cover for the operational cost of running the exchange.
HOW WILL THE MINTING AND ISSUING OF NEW DGTX BE DETERMINED?
The creation of new DGTX tokens and when the tokens will be created will be determined by digitex users through decentralized governance by blockchain. This means that each digitex exchange user will be required to pass a vote on the amount of tokens that should be minted and when it should be done. The amount of token to be minted will be decided based on the estimated operational cost of running the exchange produced by the digitex team. This estimated cost can be verified easily because how the final values are arrived at will be made available to everyone.
From the estimated operational cost provided, the digitex users will cast their votes on the number of operational tokens that should be created. With the decentralized governance system, a vote is equivalent to one DGTX token. This implies that a user with ten DGTX tokens has ten vote and the decisions of the users with the most vote is implemented. Since maintaining the exchange is in the interest of all DGTX token owners, the token owners will always ensure that they do what’s best to keep the exchange running smoothly by giving their votes accordingly.
Digitex will not issue any new token for the purpose of revenue generation in the first two years after its launch. This is because the cost of its running will be covered by the proceeds of the DGTX ICO. The high registration and trading volume on the digitex futures market after its launch will cover the operational cost in the first two years after its launch.
New tokens will be minted around the start of 2021 after the estimated cost of operating the exchange has been projected and the volume to be minted has been decided by the digitex users. Any little inflation of the token that will be caused by the minting will be offset by the high demand for the token by both new and existing users.
WHY USE DIGITEX EXCHANGE?
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Many futures trader trade futures because they want to avoid the high cost and risks involved in trading prices. In futures trading, the traders don’t have to bother about the cost and risks involved in transferring, storing and paying for the asset whose price they are trading in full. All they do is to speculate the price of the asset to either rise or fall and enter a futures contract based on their speculation.
Buyers of assets enter into futures contracts with sellers of assets. The buyers believe the asset’s price will rise before the expiry of the contract while the sellers believe that the asset’s price will fall. Should the price rise as predicted by the buyer, on the expiry of the contract, the buyer profit. And should the reverse be the case, the sellers profit. But because all futures exchanges charge commissions on all contracts entered, the buyers or sellers are not guaranteed any profit should the price move in their favour unless the price move covers the commission charged on the trade by the exchange.
This high commission all futures exchange impose on their users on a per contract entered basis make it difficult for most futures traders to have a considerable gain on their investment. Also, the commission exposes the trade of the futures trader to more risk because they are always required to pay the commission whether the contract entered yield any gain for them or not. This drawback in futures trading is what digitex has come to address. And this is an awesome opportunity granted to futures investors to maximize their trades and profits and also minimize losses.
HOW TO ACQUIRE THE DGTX TOKENS
DGTX token can be acquired during the DGTX token ico and thereafter during the minting of the token. Buyers that wants to purchase the token will send ethereum to the digitex smart contract address and automatically receive the correct amount of DGTX tokens via a smart contract. There will be a minimum and maximum cap that each user will be allowed to have in order to participate on the exchange.
DGTX TOKEN SUPPLY AND DISTRIBUTION
A total of 1 billion DGTX will be made available during the initial sale. Out of this 1 billion, 65% will go up for public sale, 20% will go to the market makers. The market makers are automated trading robots that are programmed to carry out profitable trades with very effective trading strategy and a large trading bank of 20% of all tokens in circulation. They will help make the market more liquid and offer tight bids and spreads even in volatile market conditions. 10% of the DGTX token will go to the digitex team to compensate them for past and future work. This token will be vested until 1 year after the first minting in 2021. This is to ensure that the team create a stable and consistent system that will last. The final 5% will go to the referrals. This will help foster spread and adoption of the exchange.
BENEFITS DIGITEX OFFERS TO THE FUTURES MARKET
The benefits that digits offers to the futures market are numerous. Some of the benefits include:
1. Commission-free trading:
Digits traders pays no commission on trades entered on the exchange. Traders can enter the market at any time with no restriction or fear of any sort of charges.
2. Decentralized account balance :
Traders doesn't need to trust digits with their money before they can trade on the platform. Their account balances are held by a decentralized, independent smart contract on the ethereum blockchain; not by digits. This gives the trader complete control over their account balances and investment. Their balances will always be in their care and at their reach since they won't be giving digitex their private keys.
3. Offers high security to the users:
Since digitex won't be in control of the trader's account balance or privateprivate key, the trader funds will always be secure. Their will nothing such as mismanagement of funds or unauthorised tempering with traders funds. In the event of hack into the exchange which won't be possible in any way, the hackers will have nothing to steal since no money is stored on the exchange.
4. High demand for digitize token:
Since all contracts will be entered in the native currency of the exchange and all users are required to have the native currency (DGTX) before they can participate on the exchange, their will always be high demand for the currency and this demand will create an increased liquidity in the currency.
5. Easy access to bitcoin, ethereum and litecoin futures:
These are the three futures that will be traded on the exchange - BTC/USD, ETH/USD and LTC/USD This futures have large tick size that counters every noise in the market and allows price to be displayed on a one click ladder style trading interface, even in volatile market conditions. Tick values of futures contracts are denominated in DGTX tokens. This implies that all profits and losses are settled in DGTX tokens.
6. Offers the trader complete privacy :
Traders on the digitex exchange wouldn't need to submit their names or any identifying documents before they can trade on the platform. Since only DGTX token is accepted, digits users will be saved from the pointless intrusion of their privacy by KYC/AML regulations.
Etc.
USE CASES
Use case 1:
Mr Clement just started trading futures BTC/USD futures with one of the big exchanges in the market. His trading style is more suitable for small profit taking. He goes into the market for short duration and takes whatever profit he's acquired and more ahead. But because of the commission on the contracts he enters, his style of trading is making him have more losses than profits even though his strategy is right 90% of the time.
He heard about Digitex - the trustless and commission-free futures exchange and decided to give it a try. Since he started using digits, his strategy has been very profitable and he has increased his portfolio greatly.
Use case 2
Mr. Alex is a big investor in the business world. He wants to extend his tentacles to bitcoin futures since the market seem to be growing rapidly but he doesn't want to share his personal information with the whole world. The other futures exchanges out there don't seem to offer the sort of privacy that he seeks. He was to give up when he heard about digits from one of his business associates.
He quickly did a research on digitex futures exchange and discovered that it offers the sort of privacy he seeks. He is now a major player in BTC/USD futures because of digitex.
CONCLUSION
Digitex is trustless and commission-free. The benefits it offers to the futures market will cause more investors to troop into the sector and create more liquidity in the market. This innovation is very worthwhile, timely and commendable.
for more information or enquiry, visit any of the links below:
digitex2018
https://steemit.com/crypto/@originalworks/1250-steem-sponsored-writing-contest-digitex
digitextwitter
This post has been submitted for the OriginalWorks Sponsored Writing Contest!
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Is this for real? How else would they generate income?
The generate the income to run the exchange by creating and selling their token(DGTX) to their users. This token is the only currency that can be used on the exchange. So every user will have to have a considerable amount of it in order to participate in the future market through digitex.
Thanks for visiting my blog bro.
Ok man. Nice one.
Tell me more about this contest by @originalworks. Looks interest
The contest is a weekly contest. The @originalworks team scouts for new interesting blockchain projects and invite writers to write on the project. They have a very favorable rewarding system and they try to encourage everyone that put in effort to write something interesting about the given project. You'll understand better when you visit their page.
@resuscitate, I do not understand anything written
What don't you understand? If you had gone through the article, you would have gotten the message in it. It very clear for everyone to understand
You are right. He didnt go through it.
I even went further to check out about digitex from the post made by @originalworks
Is the exchange already operational. I am eager to see the outcome.
I think so. You can head straight to the digitex website to register so that you'll be among the early adopters. Thanks for stopping by.
Coins mentioned in post:
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