What Coindays Destroyed can do in decentralized exchange
MOV, a decentralized transaction protocol has natural advantages in the domains of security and anonymity. Users do not need to perform KYC and assets cannot be misappropriated by the exchange operator. However, a lack of user information does leave an impact. The current evaluation system of common trading volume leads to two problems. The first is that an address on the chain cannot map a specific user. The second is that at any point in time a specific user may have multiple addresses. If we cannot find a solution to these problems, then rewards will end up being distributed to bounty hunters rather than real users.
MOV provides a solution which is to use Coindays destroyed as a key factor to evaluate the performance of trading.
What is Coindays destroyed?
Coindays destroyed refers to the value of assets on the chain and the number of days the asset is held. When the asset is traded, the value of Coindays destroyed will be set to Zero.
For example, if you spend 5 bitcoins which were received 10 days ago, the Coindays destroyed of this transaction is 10 * 5 = 50 Coindays destroyed (BTC).
Every Coindays destroyed is irreversible in the transaction process. This means that when your Coindays destroyed are cleared it takes time to slowly re-accumulate. This prevents bounty hunters from using the same money to frequently trade between two of their own accounts to obtain larger Coindays destroyed.
Why Does Coindays Destroyed have Advantages Over Common Trading Volume?
Trading volume is a very commonly used evaluation indicator, but trading volume can be faked. A user can quickly trade through different accounts that belong to him. This, in turn, creates noise in the market and leads to a false reflection of the current market price.
The Coindays destroyed provides a more concise measurement over common trading volume. If a user trades between different accounts, Coindays destroyed will be very low. The more trades that take place the fewer Coindays destroyed will be remaining. For example, there is not much of a difference if 10,000 transactions per day take place or just one transaction. The data destroyed every day is almost the same, thus effectively preventing fake trading volume.
To use the indicator destroyed by Coinday, the user’s transaction must have a real counterparty, not a secondary account.
How to Organize a Trading Competition Based on Coindays Destroyed in MOV
In the MOV trading competition below, Coindays destroyed will be used as the indicator to assess trading volume.
Coindays Destroyed: CD(x, t) = x * t, x is the value of UTXO and t is the life period of UTXO where UTXO represents a certain amount of an asset on Bytom.
User’s effective trading volume = User’s counterpart’s Coindays Destroyed from each transaction CD(x, T)
In this competition, all the asset value converted to the USDT value.
How to Increase your Coindays Destroyed in this MOV Trading Competition
Coindays Destroyed depends on your counterpart’s trading amount and the asset’s existing time. There is only one way to increase Coindays Destroyed.
When increasing the trading frequency, you gain Coindays Destroyed from the trading counterpart who has a higher Coindays Destroyed quantity.
By increasing trading frequency, the possibility of trading with someone who has high Coindays Destroyed is more likely. In one trade, the counterpart’s Coindays Destroyed could be high or low. However, the possibility of trading with someone who has high Coindays Destroyed is very likely in the case of multiple transactions.
Summary
Coindays Destroyed is used as a decentralized indicator in assessing trading volume for the MOV trading competition. This is a true industry game-changer. There will be a prize pool of 2 million BTM. Come and look for more surprises! Let’s keep MOVing！
