Summary of Function X All-Hands Meeting on 26th May 2022

Thank you to those who participated in the May All-Hands meeting via Zoom. If you missed the All-Hands Meeting live session, you can watch it here.

Here is the brief summary:

1. Development Updates

• f(x)EVM has officially moved from Devnet to Testnet, and some Testnet Validators have upgraded the nodes. The significance of EVM is that smart contracts will be able to run on f(x) Core.
• f(x)EVM testnet will be tested for 3–5 weeks before moving it to the Governance Proposal to deploy f(x)EVM on Mainnet.
• f(x)EVM is adopting EIP-1559 fee rules — lowering tx from 4000 Gwei to 500 Gwei (8x cheaper).
• First subnet built on f(x)Core is Pundi X Chain, and the second subnet will be Margin X. We hope that we can work with an external team to deploy the third f(x)Core subnet.
• f(x)DEX will be launched (it’s AMM DEX, similar to Uniswap and PancakeSwap) shortly after the f(x)EVM Mainnet launch.

2. FXDM Updates

The second batch of FXNEERS: 4 members from the first batch f(x)NEERs David Ben Kay, Judie Liu, Andreas Harpas and Claudio are continuing in the second batch with new additional members Crypto Knightrider, Jan and Loil (from Fox Gaming).

3. Market Making Updates from Kronos Research

• The Kronos team has started the market making service for FX tokens on Coinbase, Huobi, and Kucoin from March 2022. Upbit Indonesia will be added to the list starting from next week.
• The total traded volume, market shares, and market growth rate for each month can be seen in the pictures below. There was significant growth compared to FX tokens performance in February (before the Kronos team started the MM services).

• In April 2022, the FX market shares have doubled on Coinbase, and tripled on Kucoin. However, the market growth rate was decreasing because of the current market situation. The reason for the high market growth rate on Huobi is the FX new listing.

Questions for the Kronos team:

1. (Zac) What is the reason for the uptime differences between different exchanges? I assumed that Kronos is using the same bot for all exchanges.
- The uptime is the parameter to evaluate the market maker coding. Our strategy is similar on all exchanges, but the trader’s habits on every exchange are different. We will adjust accordingly based on the volume amount on exchanges. The other reason is that FX is trading with different pairs on Coinbase, Huobi, and Kucoin.

2. (Indra) The order book on Kucoin is low in volume sometimes, is there any reason behind it? This will be a slight problem for traders.
- We have noticed this issue, the current market is not really stable, so we cannot make sure the uptime. We will optimize our algorithm to make sure that the orderbook is stable.

Questions from community:

1. (FrenchXCore) Since we’re dividing the EVM gas fee by 8, does that apply to FxCore gas fee as well?
   - Yes, correct. It will be applicable for f(x)Core and f(x)EVM.
2. (FrenchXCore) Can we add a new coding category to FXDM?
   - FXDM mainly focuses on creative and visual submissions. The best way to do this is to apply the governance proposal. We agree there must be a recognition for coding submissions, we can do a bug and feature bounty for this one.
3. (FrenchXCore) Could the team add some interconnect points within the f(x)Wallet app for external applications? (for example to sign transactions using WalletConnect)
   - Technically, WalletConnect works on the code level, but it depends on the f(x)Wallet. We think we will only sign the whitelisted dApp on our ecosystem in the beginning (i.e Margin X, f(x)DEX, Fox NFT Marketplace, etc).
4. Regarding the MarginX, is there any problem with the Securities and Exchange Act?
   - Regulators in every jurisdiction are taking a wait and see approach (some of the are more aggressive). We are watching this closely, but MarginX is a different kind of exchange compared to the one being reviewed by SEC and regulators.
5. (FrenchXCore) Any chance FxCore could be baselined on Cosmos >= v0.43.0 (currently, the testnet version is based on v0.42.11)? I would love to see the auth module implemented.
   - We are currently running v0.42 base on Mainnet, with partial v0.45 code integrated. I see no reason why v0.43 won’t happen.
6. (Scene) Since we’re adopting the EIP-1559 fee rule, does that mean that part of FX transactions fees will get burned through fee burning and thus, reducing total supply? Will FX become a deflationary coin at some point in the future?
   - Systematically, we did not design FX as a deflationary system (of course, it can happen when we burn the FX supply). As a note, the deflationary design will also take a long time (16 years in general). The idea for EIP-1559 is to reduce transaction fees, even though it’s already super low now. It’s an open discussion if we want, instead, to keep part of the fees to people who use the network or burn it.
7. To Zac, who were you thinking about when your mentioned potential partner for the third Subnet?
   - We do not have any exact answer yet.

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