DGTX Tokenomics — 25th July 2018
The Digitex Futures Exchange has developed a revolutionary new model that will transform Bitcoin futures trading by completely eliminating all transaction fees on trades. Founder and CEO, Adam Todd, explains how the DGTX token issuance system will work when the exchange is launched.
This is made possible by using the DGTX token as the native currency of the exchange in which all account balances are denominated and in which all Bitcoin futures trading profits and losses are settled.
DGTX tokens are thus in demand from traders who must own them to participate in zero fee trading on the Digitex Futures Exchange. This demand allows the exchange to cover its costs by minting a small number of new tokens each year and selling them to traders. This new token issuance system is governed democratically by all DGTX token owners.
The need for traders to own a balance of DGTX tokens to enjoy zero fee trading on the Digitex Futures Exchange will create a surge in demand for DGTX tokens when the exchange is launched at the end of this year. This is because thousands of traders who are attracted to zero trading fees will start buying DGTX tokens. This demand for DGTX will increase significantly if Bitcoin’s price reaches new highs shortly before or after the exchange launch.
A large increase in the number of people holding DGTX tokens will also make Digitex’s democratic token issuance voting system (1 DGTX = 1 vote) much more robust. More participants will strengthen the voting ecosystem, ensuring fairness and sound collective decisions.
But there is a downside to minting new tokens: inflation. Whilst it’s true that any increase in DGTX supply will devalue the current price of DGTX, by utilizing decentralized governance by blockchain it is the DGTX token owners themselves who are in control of that inflation cost. Why would DGTX token owners willingly vote to increase supply and therefore devalue their DGTX tokens?
Because by doing so they are funding a commission-free futures exchange that creates increased demand for DGTX. Increased demand for DGTX from traders will counteract the effect of increased supply and this constant balancing act of inflation vs demand will be done by the very people who are affected by it: DGTX token owners.
Token issuance events may even be a useful tool for DGTX owners to “cool off” any large increases in DGTX price caused by increased demand from traders. Rapid and unchecked increases in a currency’s strength can lead to many problems in established economies and the Digitex Futures Exchange may be no different.
Just like any central bank that controls its own currency through effective monetary policy, the DGTX community will collectively decide on the most appropriate monetary policy that finds the correct balance between DGTX price growth and inflation.
As always, we will continue to keep you posted with our development progress. In the meantime, you can visit livecoinwatch.com to follow the price of the DGTX Token. Keep in mind, the demand for DGTX tokens will increase significantly when the exchange launches at the end of this year, as thousands of traders who are attracted to zero trading fees start buying DGTX tokens. This presents a buying opportunity for traders who are willing to buy DGTX now at low prices, as the anticipation of a surge in demand will grow later in the year.
https://blog.digitexfutures.com/digitex-futures/dgtx-tokenomics/
