Shopkeeper Investigation Agency |Dividends, Mining and the Community Autonomy — The Troika of the FCoin FMex Decentration

Gold Relativism [Shopkeeper Investigation Agency], Shopkeeper Ms. Tong and Mr. Zhang Jian have a comprehensive analysis of the three aspects of FMex’s dividends, mining, and community autonomy.

Tong Yang: this week we have invited Mr. Zhang Jian here to talk about FMex. Mr. Zhang Jian, founder of FT ecology, owns the first community-based exchange FCoin, contract trading platform FMex and FT public chain.

Zhang Jian started to contact with digital currency in 2013 and founded http: //www.qukuai.com in 2014. After the website was acquired by huobi, zhang Jian entered huobi as CTO. In the second half year of 2016, Zhang Jian left huobi and found Bochen technology, a blockchain technology service provider. In 2018, FCoin went online and subsequently launched the “Trading as Mining” mode, making it the largest trading volume exchange in the world for a time.

The First Question

Tong Yang: this first question is, since you founded FMex after FCoin. What do you think is the biggest problem in the current contract market? How can the contract market remain its sustainability while the trading market is still not deep?

Zhang Jian: players in the current contract market do have some common concerns, meanwhile they also have common opportunities.

At present, some products of the main players in the contract market are not well designed or uncompetitive, and some players have encountered bottlenecks in technical carrying capacity.

For example, BitMex is the most recognized contract trading platform which has the largest trading volume currently, and its biggest problem is overload. BM solves this problem by making users queue up, which is very unfriendly to users. FMex also saw the opportunity behind this problem and solved it with a full memory model. We launched testnet on 14th last month and received a lot of feedback from our users, who mainly give us credit for the speed and the experience of transactions. FMex solves the main problems technically, especially the technical expertise and problem-solving ability. It inherits strong technical foundation of Fcoin and leaps up in large-scale architecture. If you have are interested, try FMex testnet by visit https://testnet.fmex.com. The API documentation links: https://developer.fmex.com/zh.html.

Another aspect is the problem, as well as the opportunity: the contract market is heavily traded, and the top player is rewarded with higher returns, but the gains are not tied to the trader. Since FCoin, we have always believed that traders are the main body of the market. These traders have contributed to the boom in the contract market, but unfortunately, they have not been able to share the dividends of the growth of the contract market. FMEX is the first profit-sharing contract platform token in the whole network. As the sole equity owner of FMEX, the FMEX holders not only enjoy 80% income distribution and also own the real community governance rights. FMex has been community-based since its inception and belongs to all FMex holders. When there was no product, we conducted a round of real IEO on FCoin. There was no private placement and no reservation. We issued 300 million FMEX through daily subscription and target allotment for 15 continuous days and 34 times over-subscription every day. The coolness of the trading market affects both the spot and contract markets, and contract products are more sustainable than the spot market because it can operate in both directions. Contract exchanges have been able to maintain large trading volumes during downturns in the market. Of course, the high leverage ratio is also the reason for the large transaction size.

The Second Question

Tong Yang: what is the whole mechanism setting idea of FMex contract platform development? what are its characteristics compared with the current contract platform in the market? What do you think is FMex’s biggest advantage right now? Last year, the killer mace of FCoin’s rise was “mining”. Is there another such surprise this year?

Zhang Jian: in summary, “technology”, “dividend”, “mining” and “community autonomy” are the features of FMex’s platform, and they also bring us overall advantages.

First of all, we also mentioned in the previous question that the technical expertise and carrying capacity are the bottlenecks of this industry. In order to make users truly feel the stability of the trading environment, FMex can fundamentally solve problems such as customer jam and queuing. At the beginning of the design, we applied the all-memory trading model, which is extremely difficult to develop. It can ensure that every user’s valid orders can get real-time response and settlement. In particular, when forced unwinding and automatic unwinding, they can process the order response and matching at the same time to truly achieve “real-time” trading.

The technical advantage is a foundation.

In the simple test environment of FMex Testnet invitational competition, the full memory model left a deep impression on the seed users of FMex. According to users’ feedback, even in the test environment with low-end configuration, FMex dealt a large number of orders without any lag, and the API responded very quickly. The overall feeling of FMex was that it was very fast.

The second is a dividend-the spirit of sharing. FMex is not a private company, but a public-owned innovative community which uses a mechanism that is rarely seen in traditional capital markets: 80% of revenues are distributed to FMex holders.

The third feature is mining. It is no exaggeration to say that FCoin is the founder and practitioner of the concept of “Trading as Mining”.

The essence of “Mining” is the long-term reward of gradually giving away ownership of the platform to traders. The early mining enabled FCoin to achieve amazing growth, but it also brought some problems, which were caused by the immature mining mechanism. At present, when FMex is launched, we still insist on mining as an incentive and feedback behavior, and on the basis of absorbing FCoin’s experience in mining in the early stage and sustainable mining in the late stage, we keep innovating and practicing our original intention of “making traders become the real masters of trading platforms”. I believe mining will be a prominent feature of FMex.

The fourth characteristic is the communalized governance.

For example, the ongoing “Referendum on major matters for the official launch of FMex” itself is the best embodiment of community governance. FMex’s major decisions are made jointly by the owners of FMex, which is unique in the contract market. I will explain more about what this referendum was about. As for FMex this year, there will be more emphasis on “sustainable” than “amazing”.

We will never sacrifice sustainability for the speed of development.

We still hope that the launch of FMex will be a “breakthrough”, meanwhile, the internal mechanism and development decisions will be more stable, making FMex’s growth sustainable and allowing all FMex holders to share the fruits of FMex’s growth. Due to the needs of the broadcast, I added my name in front of each sentence, mainly in words, maybe you feel not so real only to see my head portrait, so I say hello via voice, and then answer some questions you may concern.

In fact, you can tell from our testnet that the preparations for the recent frequent functions online are almost over. For example, we launched the stop-profit and stop-loss product a few days ago. It is basically a fully functional perpetual contract product. In addition, we are launching a referendum and preparing to launch FMex. As you can feel, we will launch soon. I would like to give you an overview of our launch progress.

We are now in the deployment of the official launch, and the technical level is now at this stage, and various forms of activities and promotions to be prepared in the early stage and later. So, we now internally predicted that will complete the online on 25th this month. You can start in real trading. The launch date subject to change, please check our announcement. We are in the final stage, and since you have seen the entire product, so the online is surer.

Because our community users and people who care Fmex are also concerned about our business schedules. Although we experienced a delay, this time I want to say, we won’t delay. As we mentioned before, we plan to launch in October. Since we are still in the launch preparation process, so the specific date is subject to the official announcement that the day of the specific or will be subject to the official announcement. I have inserted such a voice and answered some questions mentioned by some users before, then I still go down along with the host.

The Third Question

Tong Yang: just two days ago, FMex initiated a referendum on “income distribution mode and sustainable mining mechanism of FMex”, which attracted extensive attention and generated strong discussions within the FT ecological community. We have noticed that from the content and form of this referendum, we can actually see three key words: “dividend”, “sustainable mining” and “community autonomy”, which have been three unique labels of FCoin.

Why is FMex willing to put the “income distribution mechanism” and “mining mechanism” in a referendum?

Zhang Jian: this kind of decision is determined by the initial intention of “FMex to be the trader’s own contract exchange” and the characteristics of the community-based organization of FMex itself. FMex is not a traditional company but a new kind of community organization based on the communication economy. The holders of FMex are the real owners of this platform and have the right to make important decisions. The referendum is a manifestation of the right of FMEX holders to community governance. From the perspective of these two mechanisms, how the mechanism of “dividend” and “mining” operate is the core issue of the current development of FMex. It is also a matter of general concern of the community and details need to be clarified. Therefore, it is a major matter of FMex to conduct a referendum.

The Fourth Question

Tong Yang: we noticed that the referendum was divided into two which the first is the income distribution method of FMex, the second is sustainable mining. These two items are important and need to be clarified, but the AB option was not given. Why?

Zhang Jian: The first thing to discuss and make clear is that the content of this referendum is a starting plan or a starting standard. It is different from many previous referendums of FCoin. Many referendums of FCoin have encountered major disputes. We need to decide which plan is better. This referendum on FMex is similar to the previous referendum on FCoin white paper, which is to determine a standard. If people agree to start the referendum in accordance with this plan, they will pass it; if not, they will not pass it. If the referendum is approved, the plan should be implemented promptly. If it is not approved, the plan must be adjusted. In terms of the effectiveness of referendums, all matters agreed upon in referendums can only be decided through referendums if they need to be adjusted in the future.

The Fifth Question

Tong Yang: Do you think profit sharing is the best way to maintain trust between exchanges and users? Why do you want to change to daily distribution for FMex this time? Is this good for trading depth?

Zhang Jian:Of course, I believe that dividend is not only the best way to maintain trust, but also the future direction of all platforms involving public interest. In this referendum, there are two key points mentioned in the FMex income distribution method. The first point is that 80% of the FMex platform revenue will be allocated to the FMEX holder. This is inherited from FCoin as mentioned above. The tradition and the initial intention of our practice of the token economy, we have always insisted that 80% of the income is distributed to the token holders and FMex still adheres to this principle.

The second point is that the distribution method is allocated on a daily basis. This is actually relative to FCoin’s income distribution method.

Currently, the distributable income of FCoin is 20% per day and 80% per year. In the early stage, FCoin was also distributed on a daily basis. Later, due to the adjustment of sustainable mining, we changed it to a combination of daily distribution and annual distribution through a referendum.

This start-up program of “daily distribution” is the result of full absorption of community views.

Since FMex has just started, after community investigation and overall evaluation of various aspects, we believe that the daily allocation is more in line with the interests of the community and the requirements for the start of the project.

The Sixth Question

Tong Yang: It can be seen that your development style is to fully listen to the voice of the community. My next question is that last year, in addition to fluctuations in FT prices, FCoin’s mining mechanism has always attracted the attention of the industry, and there are many followers. From the “Trading as Mining” to the “Sustainable Mining” upgrade, FCoin has taken some detours and has been perfecting its own mining mechanism? What is the specific mechanism of “flexible adjustment of sustainable mining” for FMex this time?

Zhang Jian: the mechanism of FMex sustainable mining in this referendum is similar to that of FCoin when it starts sustainable mining. The core is that the output can be controlled and adjusted flexibly according to the market. After the sustainable mining operation of FCoin for a period of time, we formed a system of production reduction and lock-up changes through two referendums, which was also established in the process.

But the system also exposed some problems, the flexibility is not good enough, for example, when the market is bad, we have to release a lot of mining out when the market is good, we are not flexible to adjust, increase production, so as to give the market a better incentive. In other words, the fixed output plan has certain disadvantages and problems. So, after the FT sustainable mining practices, we should think FMex sustainable mining from flexible adjustment control got started production, we can according to the market situation if we do our development speed, strategy implementation, including health FMex price itself, a series of factors such as flexible adjustment of mining production.

Of course, “flexible” doesn’t mean “arbitrary.”

Each adjustment will maintain a period of time, the next adjustment will have market change factors and reasons.

According to the consensus of the proposal group of the FT community committee and FMex, it is agreed that flexible output control is more conducive to the development of the initial stage.

In fact, the lockup rules and mining ideas are the same, are contained in the whole sustainable mining.

Once officially launched, we can gain some experience in the market and observe the overall impact of market changes on the development of FMex. We will carefully adjust based on market changes and various factors. FMEX’s mining assets belong to the public resources of the community, and we cannot easily waste them. We should make the best use of them and let them play their due value. Even if it is to be returned to the trader, it is worth it.

We hope to avoid the proportion and extent of FMEX waste or waste consumption when we cannot adjust the production. We want to maximize the value of mining behavior, which is why FMex sustainable mining has adopted this strategy in its infancy, in the overall interest of the FMex community.

It should also be noted that although the referendum did not mention the destruction of the buyback, it was very clear that there were no major details to be decided.

There are many times when you do all your best and you don’t know what to expect. We can only try to do our best.

The Seventh Question

Tong Yang: besides the perpetual contract, are there any plans for other contract products of FMex, including delivery contracts and future products? Will it be more innovative than similar products on the market today? When can other mainstream currencies online contract?

Zhang Jian: FMex will only launch one product at the initial stage, namely BTC perpetual contract. Perpetual contracts are technically complex, have the greatest potential, are more valuable, and are more in line with FMex’s overall strategy and expansion objectives.

And we already have the technical reserves for other products including delivery contracts, futures. We will also follow the development of the market and gradually expand a richer product line.

We want FMex to have more steady growth and development. Both product iteration and innovation require time, trial, error and grinding. FMex will be set a brief trial run stage at the initial listing, Under the impetus of real users and transactions, we will further improve the product and adjust the details. After the trial run, we will expand the market on a large scale. when trading users and active growth reaches a certain expected, other major coins will also be launched, I believe that this process will be faster.

What I want to say about innovation is that innovation is the foundation of the entire FT ecology.

As you can see, since the establishment of FCoin, we have been insisting on innovation, and some innovations even exceed the acceptance degree of the market and our carrying capacity. But the spirit of innovation is something that FCoin and FMex will certainly adhere to.

We emphasize “sustainability” a lot this year because we cannot ignore the objective laws of transaction development while innovating. Of course, these laws are also explored from practice.

I believe that more innovations will be emerged in the whole FT ecosystem, including FMex. Please look forward to it.

The Eighth Question

Tong Yang: Many head Exchanges have also launched the contract business currently. In the face of industry competition, what measures does FMex take? Is there any unique approach to market operation?

Zhang Jian: Exchanges have been facing the traffic loss dilemma since 2018. In the face of this dilemma, the constant pursuit of product diversification and differentiation has become the core strategy of the Exchange. Derivatives trading, Exchange public chain and OTC layout etc，have all become the important layout direction of the Exchange.

Since August, the field of contract has become increasingly competitive, there are not only the major exchanges starting to do contract business but also a number of new derivatives exchanges. FMex does not intend to compete homogenous with current contract players. I believe you can see that FMex, including FCoin, is taking a more independent road.

Although we are doing contract products, FMex is a new business organization in the community. Strong technical support and innovation enable us to create products that better meet the needs of traders and the market. “Dividend”, “Mining” and “Community Autonomy” make FMex unique. Blockchain has been adhering to the idea of decentralization and community since its birth.

As the core infrastructure of the token industry, the trading platform will also go in this direction, which represents the inevitable development direction in the future.

Although we have experienced many difficulties, we believe that with the further improvement of the mechanism, we will accumulate unique competitiveness.

FMex wants to be the trader’s own contract exchange, so our best hope is to keep traders and their interest on board. This requires strong technology, marketing and operational guarantees, and a range of long-term strategies. Mining has been proved in FCoin that one is the power of cold start, the other is the depth and liquidity of solution, which is especially important for contract trading.

In addition, FMex is currently recruiting the first batch of contract market makers, which is visually the best treatment for the entire network:

(1) Maker -0.025% real-time commission rebate

(2) API private interface 400/10s

(3) very imaginative position limit

Welcome contract market makers to experience FMex. Please contact our responsible person @carrie Yang

Tong Yang: today, I would like to thank Mr. Zhang Jian for being a guest of the Golden Financial of Shopkeeper Investigation Agency. As Zhang Jian has a busy schedule, we will not do a specialized community Q&A. We also welcome everyone to follow up on FMex here. Thank you again, let’s see you next time

Zhang Jian: Thank you