Summary of Function X All-Hands Meeting on 17th February 2022

Thank you to those who participated in the February All-Hands meeting via Zoom. We had over 43 participants in this meeting. If you missed the All-Hands Meeting live session, you can watch it here at:

Here is the brief summary:

• Development updates
  a. FX DEX Variable
  We have successfully tested FX DEX (code name: Variable). Community feedback is very helpful for our developer team to improve. There are some points that our team needs to cover on the next version:
  - Close position issues
  We had several reports of the bug when users want to close the trading position, we will take a look at this bug and improve it on the next Beta version.
  - More trading pairs
  We are looking to add more trading pairs to the DEX, other than the FAANG. Some of the options that are suggested by community members: palm oil index, S&P index. We will discuss this internally and as a note, we can trade any pairs as long as the price oracle supports the pair.
  - A catchy name for FX DEX
  We are open for the community to voice their opinion on the forum.
  
  b. EVM development
  - We have synced the token amount from FX address to 0x address (majority used by EVM compatible blockchain). This update will be very critical and open an opportunity to be supported by Metamask.
• Improve Function X EGF application process
  Richard from Function X Foundation has researched the governance of other chains and proposed an improved EGF application guidelines.
  
  Reason to improve: How to address the issue of decentralization and achieve quorum if company validators do not vote.
  
  Proposed solution:
  A committee consisting of relevant team developers will be formed to review the proposal before voting. Based on the committee’s decision, the Function X team will indirectly exercise their voting power from a delegator’s standpoint but not from a validator’s standpoint with full knowledge that the proposal was reviewed preliminarily by skilled peers.
  
  In that perspective, each proposal shall lead to:
  - The designation of 3 team developers, for each proposal that reaches out to the committee. The team developers are chosen based on their skillset. For example, a market-making proposal will be judged by traders/trading system engineers, while a NFT proposal will be judged by a smart contract developer.
  - The team will designate voting power to each committee member such that each committee member will control 5% of the network’s voting power.
  - Each committee member acts independently. The proposer will obtain 5% vote from each of the 3 committee members if their proposal passes each committee member’s assessment. If it passes all committee members’ assessment then the proposal would have achieved 15% “yes”.
  
  Note: the rest of the voting power would then come from the public delegators and validators. All proposals are voted on-chain.
  
  Process:
  Before setting up any proposal on-chain, it is strongly recommended to any proposer to proceed the following way:
  1. Contact the team with an inquiry form
  - The proposer must contact the Function X team by correctly filling in the EGF proposal form for points 1–5 (inclusive) of the EGF proposal form
  - The more information provided, the better guidance the team will be able to provide to the proposer.
  2. Identify support opportunities
  - Identify ways to help, beyond monetary support; e.g. coding, interfaces, source code, etc.
  - Request more information in the Inquiry Form
  3. Formal proposal
  - If identified as requiring financial support
  - Requires proposer to submit the fully completed EGF proposal form
  4. Evaluation
  - Provide feedback
  - May request for more information
  5. Technical interviews
  a. If required, depending on the tier requested, technical interviews will be scheduled
  6. Funding decision
  7. Onboarding
  a. We’ll write up a contract and do KYC before disbursing funds
  b. Funds will be disbursed according to milestones
  
  Categories:
  1. Blockchain Network layer
  - Tooling — Improving the developer experience
  - Documentation
  2. On-chain Apps
  - DeFi & Games
  - Property
  - Social
  3. Off-chain apps
  - Data Analysis
  - Wallets
  - General apps (Web, Android, IOS…)
  4. Trading
  - Market making bot
  - Trading systems
  
  You can find more information regarding to the guidelines and proposal form in https://github.com/FunctionX/fx-docs/tree/master/function-x-egf-proposal-guidelines
  
  Questions from community:
  1. (Raffaoul Francis) How can we assure the community about the fairness of the judgment of the 3 people , don’t you think the 3 people should be from outside the FX organization? Perhaps even some consulting companies.
  David: We appreciate the comment, but I do not think it is practical to apply it now. Decentralization does not happen all at once. At this point, I am not concerned about the lack of fairness from the 3 judges. One of the considerations for these consulting companies is also the high cost.
  
  2. (French X Core) My worry is the Community Spend Pool is growing very fast, and what are we gonna do with this fund?
  Zac : It is a good problem to have. Your point is very legit. We definitely won’t be distributed at the rate as we are right now (In FXDM case, there are some delays), but it’s definitely going to pick up. As an example, one of the big spendings that could speed up the fund distribution is the listing fee / influencer promotion fee.
  
  3. (French X Core) for the FX team regarding the EGF and CommunitySpendPool. So it’s more about governance. I want to know more details about it.
  Danny: First thing, we have an EGF fund and CommunitySpendPool. On every block, there are new tokens generated, and 25% of it will go to the Community Spend Pool. That Pool also needs to go through a governance proposal to be able to unlock it. For example, we will directly draw the fund from the Community Spend Pool to Kronos as a loan. In governance voting, due to coding, Community Spend Pool is listed together with EGF.
  (FrenchXCore) we need to state which pool we will use for the funding proposal. Because from a governance perspective, it is different.
• FXDM
  We are currently in the process of updating the award amount, since the current amount is not really interesting. We are also finalizing several websites to spread the words to facilitate participants to submit their designs.
• Market Making Proposal by Kronos
  Market Making Introduction
  Danny:
  In short, we need market makers to enhance the buy and sell order books and maintain the liquidity on the exchanges. For example, if there is a new investor who wants to buy $FX, we can make sure that he will get it with a stable price (if we have market maker service applied). We were doing this by ourselves. Now we had a discussion to invite external market makers to speed up the organic growth.
  
  Ben from Kronos:
  Kronos Research is a quantitative trading firm and was founded in 2018 by Wall Street veterans- Mark Pimentel and Jack Tan. Kronos Research has also incubated a new network called Woo Network to connect traders, exchanges, institutions, and DeFi platforms with democratized access to the best-in-class liquidity. Kronos has $5b — $20b daily trading volume on centralized exchanges and also consistently stay as #1 on decentralized exchange (for example, on dydx).
  
  Market making is basically adding buy and sell orders in the same ratio (mid-point), so users can buy and sell at the better price. For institutions, they will take a look at the asset with good liquidity. With good liquidity, it will increase transaction volumes and attract more traders to the specific asset. Market making providers will not do token pump/dump and wash trading. All volume increments are organic trading volumes.
  
  Kronos research will do their best to deliver as their proposals, despite the risk. Risk is something that Kronos cannot avoid, because there are buyings when people are selling, and vice versa. In this case, FX Foundation is taking a side risk by lending the $FX tokens to Kronos, and Kronos is taking a risk to provide the service. As a note, Kronos has a great reputation in the blockchain space, doing its best to maintain it.
  
  6.8 million $FX for the loan is calculated by a formula, which was calculated based on the current liquidity by Kronos trading team.
  
  Question from community:
  1. (Riz Truth) How long would it take (if the proposal passes) for Kronos to get everything in place and therefore increase liquidity for $FX? Also, will you support all $FX pairs or selected ones?
  Neal: According to the proposal, we will support FX/USD on Coinbase, FX/KRW on Bithumb, and FX/BTC on Upbit. These are the 3 most popular pairs. Based on the community feedback, we will add Kucoin as well. After the proposal passes, we can start as soon as possible.
  
  2. (Patrick) Since the loan will be contracted for one year, what are the specifications for the repayments? Will it be paid back in $FX or the USD equivalent or other? what will happen if the market goes way down like in a 95% bear market, will this have an influence on the repayments?
  Neal : We make 3 call options with the Function X community. We may return back the original amount of $FX token in 1 year or stablecoin (by the strike price). It depends on the market price. If it is higher than the strike price, we will repay in stablecoin, and if it is lower, we will repay in $FX token. Kronos is also open to an option to extend the service, and this will be on another proposal.
  
  3. (French X Core) Will progressive reports be given to Function X/DAO?
  Neal: The progress report is probably a monthly report and we will provide daily data from bots to Function X.

That’s all for this month. Once again, thanks for your participation in this meeting.

What do you think about our All-hands Meeting in Zoom? Is it a good way for you to engage and participate? What can we do to make it better? We welcome your discussion and feedback at https://forum.functionx.io