Earning Our Place – GO.Exchange
Other projects in the space have very vibrant communities due to their decentralized nature. As a centralized organization, we spent a great deal of time thinking about how to include our community in a meaningful way. We came up with an interesting mechanism that we call community burns, in which we allow our community to vote for which tokens they want us to burn with 50% of our transaction revenues. For those who may not know, burning cryptocurrencies refers to removing tokens from circulating supply forever.
Our first community burn will be OMG. For the first three months of launch, for our inaugural community burn, we will use 100% of our trading fees instead of 50% to burn OMG.
After the initial OMG token burn, the decision-making for the community burn tokens will involve our community. To conduct future community burns, we are introducing a reward token called GO.Exchange Token (GOT), to reward users for trading on GO.Exchange. GOT reward token is much like a loyalty point system on other platforms. GOT is obtained by transacting on GO.Exchange — the more volume a user contributes to the exchange by transacting, the more GOT that user will be rewarded. Although no votes will be held in the initial phase of our launch, early adopters can begin accumulating GOT from day 1. To be perfectly clear, we are not conducting an ICO or raising any funds through GOT.
Our community will be able to vote for tokens they would like to see burned by using GOT received as a reward token from transacting. We will set aside 50% of our transaction revenue to burn the top voted tokens voted by GOT holders. Although our opening community burn will be comprised of 100% of transaction revenue, burns thereafter will be 50% for the first year, 35% for the second year, and 25% for the third year and the years following. Through GOT, our community can vote to add a token burn mechanism to their favorite tokens listed on GO.Exchange. For instance, if the top voted tokens from GOT holders are BTC and ETH, then we would use 50% of our trading fees to burn these tokens. We are expecting to conduct future community burns once every two weeks or once every month. We believe this gives our community a very unique way to engage with their favorite tokens and with our exchange that is not done anywhere else.
It is important to know that we are capping the amount of GOT obtainable per day, per person to prevent mass concentration of GOT. Tokens held by the company and team members do not carry voting rights. Only our community members who hold GOT will be able to vote. We may employ different voting mechanisms such as quadratic voting should we find major issues with a normal flat voting mechanism. We will also consider other use cases for our reward token, GOT, so our community members holding GOT can contribute their voice in different ways. Ultimately, GOT exists to reward our community for using our exchange.
You can read more about GOT here. Further details on GOT will be released in the future.
We understand that it might seem obvious to use the OMG token as the main exchange token. As a general matter, any permanent new additional use for any token beyond the use case it was initially created for opens a new set of considerations from a legal, regulatory, and risk perspective and could risk triggering securities laws. As you may have seen with other projects, revenue share was ultimately not implemented because of securities law concerns. We also want to remind people that just because other exchanges share revenue does not mean that it is legal.
Published at Tue, 25 Jun 2019 12:22:15 +0000
