FCoin Announces Their Transition to the “2.0” Era

This article was originally posted on CCN:
https://www.ccn.com/fcoin-announces-their-transition-to-the-2-0-era/

On August 6, 2018, FCoin announced the launch of FOne and their official entry into the era of version 2.0. FCoin 2.0 is no longer just an exchange, but a community-based trading technology service provider.

What is FOne?

The essence of FOne is the decentralization of token issuance. FOne enables sponsors or community liaisons to settle in and open independent trading zones. Sponsors have the right to issue tokens in their trading zones, as well as the right to make governing rules. They are responsible for the enforcement of their projects. FCoin has become a sponsor service provider. In addition to underlying services, it also provides technical support for the sponsor’s projects and products. In essence, FCoin is building an entirely new ecosystem.

Rights, Responsibilities, and Standards

The rights and responsibilities are particularly important in the FOne system. The special zone is exclusively set up for the sponsor institution. The sponsor institution has the full responsibility to ensure the quality of the project. While the full rules and regulations are not shown to the public, they are in place to ensure the sponsor institution can successfully operate their trading zone. Currently, the standards that the sponsors must follow are in place to establish the mainstream token funds for the industry. It can be seen on the FOne homepage that the application channel has also been opened, and the standards will be determined by the community.

Any “token issuance fees” will not be charged, and the rules of “transaction-mining” will not be changed

FOne continued the GEM policy that any “token issuance fees” will not be charged. In the selection of sponsor institutions, the market elimination system is adopted in principle, but FCoin will have certain criteria, such as the reputation of the management team of the sponsor institution, length of time the institution has been operational, historical investments, as well as a few others. FCoin has announced a list of 32 sponsors in total. The “transaction-mining” rule of the FOne trading zone is consistent with the main board, that is, all trading users can enjoy 100% of the trading fee returned in form of FT. The trading fees in the FOne trading zone are 0.2% for seller orders; buyers do not pay a trading fee to use the platform.

Other Operating Rules for Sponsors

1. FCoin-certified sponsors can apply for trading zones named by their own brands in FOne, or a trading zone jointly named by multiple sponsors. They also have the rights to issue tokens, to operate the trading zone, and to make rules in this zone. The sponsor must conduct real-time risk assessment and continue to report on their project’s status.
2. Each sponsor institution will receive 10% of the transaction fees for all tokens in its trading zone (i.e. 50% of the original FCoin platform revenue) as its operating income, which will be returned to the sponsor institution on a monthly basis. A sponsor institution must be designated in the trading zone with multiple sponsors, which will collect operating income and then distribute it internally.
3. If multiple sponsors apply to release the same token, they will need to negotiate whether to release it in the joint zone (one sponsor will collect all operating income, and then distribute it internally). If the negotiation fails, the sponsor institution identified by the project party shall be chosen to receive the fees.

Community Liaisons

Individuals can set up trading zones in the community channel. Sponsors, media representatives, rating agencies, community organizations, opinion leaders, and individuals of other organizational types can also participate in FOne channels.

Two kinds of audit modes can be selected after the application. One is the queuing mode in which the applicant provides a relevant introduction and resource description, and FCoin conducts a review in the order of submission. The second is the freezing (stake) mode. If you hold and freeze 1 million FT during the opening period, you can directly open your trading zone in the order of application.

Like sponsors, the “community liaisons” who apply successfully have their own home and trading pages, as well as the right to issue tokens. However, they can choose only the tokens that have been traded on FCoin or other mainstream exchanges, whereas sponsors can choose both. In addition, community liaisons and sponsors have the same rights in regards to income distribution.

Which projects are currently included?

The six trading zones on the official website include the Bixin + Liaode + Bisheng joint zone, Niepan Capital, BlockVC, Jiedian Capital, Bixin, and Bisheng Capital. Niepan Capital is a fund focused on primary blockchain market investment. Its current members are mainly located in the Bay Area and Beijing and its founder is an early supporter of Ethereum. BlockVC is a blockchain venture capital and investment banking service agency that provides financial, technical, strategic and compliance support and assistance for a number of blockchain start-ups across Singapore, London and the Silicon Valley.

The 11 projects released online are: VNT (VNT Chain), BOX (ContentBox), COSM (CosmoChain), LOOM (Loom Network), GSE (GSE Network), IOST (IOST), HPB (HPB), VBOOM (Vboom), TAT (TonArts), UGC (ugChain), and RISK (Global Risk Exchange). It is worth mentioning that there are some well-known high-quality projects in the industry, such as GSE, IOST, and BOX, and others that have been recommended by many sponsors such as VNT and RISK, which are deeply favored by investors.

FCoin Officially Enters the Era of “Version 2.0”

The launch of FOne will help FCoin gradually withdraw from the non-technical aspects of judgment on specific projects such as token issuance management and rule-making, and focus on the improvement of trading systems and core products. This will allow them to provide community users and project parties with better product technical support. As the representative of the community, the sponsor institution will replace FCoin to undertake the token issuance and project management.

Zhang Jian said that “this model is similar to the model of ‘Tmall/Taobao’. Each sponsor institution will naturally be responsible for the projects it sponsors. In the long run, the performance of the sponsored projects will directly affect the credibility of sponsors. This comprehensive community-based, platform governance structure is the core concept for Fcoin’s entry into the era of version 2.0.”

The community completely controls the auditing rights, regulatory rights, and token issuance rights of FOne. FCoin has once again added innovation to what an exchange should be, and continues to refine a “transaction-mining” model. It is not easy to continue to make these progressions. If we thought FCoin had reached its peak potential in version 1.0, we are in for even bigger surprises in version 2.0.