We designed the FinNexus roadmap for 2020 and will review it every half year to cope with the changes that usually occur in the crypto-world at breakneck speed. We include a roadmap in our whitepaper, still, the semiannual roadmaps via Medium posts like this one will consist of more details than the broad strategic strokes recorded in the white paper.
This 2020 roadmap consists of 3 parts: business & ecosystem building, protocol developments, and products & operations. These 3 areas represent the lifeblood of the FinNexus project. In a synergistic fashion, gains in any one of these areas lead to further development and evolving requirements in the other areas. This interrelationship is a hallmark of decentralized business models, which we hope to establish for the entire FNX ecosystem over time and through advanced technological development.
Business & Ecosystem Development
In this section of the roadmap, we delineate the milestones of partnership, community building, exchange listings and other distribution & sales phenomena. In February, we are extremely excited to hold our Insights Online Blockchain Summit, an innovative e-conference that we are co-curating with one of our founding investors Wanchain. Being made available to the public just after the Chinese New Year, we hope that the Summit will serve as a New Year’s gift to the entire community of those interested in blockchain and decentralized finance (DeFi).
2019 was the year of resurgence for the digital assets industry in general. According to Coinmarketcap, Bitcoin price started the year at $3,746.71 and ended it at $7,193.60 for a gain of 92% on the year. According to DeFi Pulse, a total value of $50.816 million was locked up in DeFi utilities at the beginning of 2019. By the end of the year, this value had soared 1240% to end at $680.98 million. And that figure represents only 0.355% of the total end-of-year crypto market cap of $191.687 billion. As proof-of-stake systems are set to gain more blockchain market share in general and the industry continues the trend of accepting more and different kinds of digital assets as collateral for DeFi products, 2020 is shaping up to be a banner year for the burgeoning DeFi sector. We can’t say where we expect that DeFi Pulse number to be at the end of this year, though of course, we hope that it will be a much higher ratio than 0.355%! We can say, however, that we are very excited about the prospects of the sector in which we have positioned the FinNexus project.
In addition to the Insights Summit mentioned previously, we are excited to announce that we plan to have our FNX token, based on Wanchain’s WRC20 protocol, and they will be listed on exchanges soon after the conclusion of our ICTO in February.
Cooperation and partnership are crucial to the success of our business. In 2020, our focus will be to partner with other public chains, in addition to Wanchain (WAN), to connect not only in protocols but also in business and communities. Partners with quality assets, either on-chain or off-chain, and partners capable of underwriting these assets will be the key users of the FinNexus protocol clusters.
These protocol clusters will serve as the connective tissue between various sectors of the emerging global decentralized financial infrastructure. The intent of the work is not just to provide interoperability between base-layer public blockchains, although that will be an important step along the way to fully realizing the FinNexus vision. Our goal is to create the open APIs and “fat protocol” framework to connect public blockchains, all their various second-layer solutions including payment channels, dexes, centralized digital asset exchanges, legacy financial systems, and traditional financial services technical infrastructure. The entire suite of financial services middleware is within our business scope. But we aim to solve these connectivity issues for one set of problems at a time, hence we use the concept of “protocol clusters” to describe our process of business and protocols development.
We track the expectations of our technical development in this category of the roadmap graphic. In the first quarter of 2020, we will deploy the smart contract of the FNX token and all other ICTO-related contracts. Soon, we will release a more detailed FNX technical paper on FNX protocols. FinNexus is a protocol suite that will be made up of several protocol clusters serving different functions or industry segments. We shall begin with the most basic and universal protocols to ensure the usability of FNX throughout the emerging global DeFi infrastructure from its inception. We feel that it is unpractical to think that our users and communities are willing to wait for over 3 years after a whitepaper is issued to see progress on our technical roadmap. We firmly do not intend that to be the case with FinNexus.
From the most basic perspective, FinNexus (FNX) will concentrate on 3 different “protocol clusters” during its first stage of development. At the base layer, we will build a Blockchain Interaction Protocol (BIP). In the layers above this base layer, we will look to refine and deploy a Protocol Cluster for Assets Payments (PCAP), and finally an Assets Distribution Protocol (ADP).
For BIP, FinNexus will mainly cooperate with WAN to develop faster and more user-friendly pathways to connect on-chain assets to smart contracts on various chains.
We could turn to a few networks to create a PCAP that could connect different digital currencies including Ripple and XRP. So we will try to use Interledger to create a payment channel for FNX. We will also use XRP Ledger to issue tokenized assets that could be exchanged by stable coins on XRP. And then we will make this function to be a part of Assets Producing Protocol and Assets Trading Protocol.
Assets are the water that flows within the pipes created by FNX protocol clusters. Assets are the key to the prosperity of FNX Eco. Therefore, we highlight this part separately.
The first tokenized assets named UM1S (UM-Series Asset-backed Tokens Phase 1 Senior Tranche) will be issued in Q1 2020. And before the issuance, a detailed offering paper will be disclosed on the FinNexus official website. As illustrated, UM1S will play an indispensable role in the process of ICTO, which will be launched in Q1 2020.
More phases of tokenized products will be modeled and disclosed in Q2 2020. Similar products will be issued with the same underlying assets and named UMnS. And to be noted, the conversion period will end during this time slot, and hence the payback of the principal and interest of UM1S. The final amount of FNX issued will be decided.
The decentralized model is always an inevitable half of the FinNexus picture, and it has been under discussion since last year. We are planning to make the draft paper of our decentralized model public in Q3 2020, for a deeper discussion within our communities.
Also, we are constantly asked by our community members if there will be a staking mechanism involved in later stages of FinNexus. The answer is yes. The basic idea is to grant the staking users more benefits with higher returns and lower transaction costs, as well as other benefits of participation and interactivity; also, in the future decentralized model, staking will be intensively involved within the whole tokenomics. The more detailed paper will be released to the communities for discussion whenever there’s more progress being made.
In Q4, we will give a test run of our decentralized protocol model and deploy the staking mechanism. Also, we will begin to be more involved in the market-making operations for our issued products on the market, to create a more dynamic FinNexus ecosystem.
FinNexus is the open finance protocol built on the Wanchain blockchain. It is a hub for connecting different decentralized ledgers to each other and users, and also for connecting with traditional finance applications. The first iteration of FinNexus will be a marketplace for hybrid decentralized/traditional financial products.