Cryptocurrency exchanges must be generously financed by their owners in order to ensure financial liquidity. Without such liquidity, an exchange risks freezing up from debt. Likewise, exchanges that rely upon a centralized supply represent a central point of failure for cryptocurrencies. Remedying this risk is XTRABYTES X-CHANGE, a decentralized exchange (DEX) configured to generate liquidity from XTRABYTES own internal STATIC network.
Created as a decentralized network of physical and virtual (STATIC) nodes, XTRABYTES is uniquely qualified to host a DEX. After all, it’s XTRABYTES’ STATIC node owners who ensure the blockchain’s governance, consensus, and security. Consequently, these owners may also create a deposit on X-CHANGE of the coins they wish to receive transaction fees from. Its this latter function that produces the needed liquidity to operate a decentralized exchange.
Project Coins On X-CHANGE
In the near future, outside projects created with XTRABYTES technology will be eligible to receive a project-coin. These project coins will be traded on X-CHANGE and vetted by the STATIC Community (in very much the same way XFUEL is traded). While projects that attract the Community’s interest will be heavily traded, those that do not will remain stagnant. Given the transaction fees incurred by popular projects, the STATIC Owners have every incentive to financially support such projects.
XFUEL On X-CHANGE
The XTRABYTES team is currently preparing X-CHANGE to host XBY/XFUEL trading pairs. XFUEL is currently in high demand among XTRABYTE team participants because it helps fund STATIC Node purchases. In particular, “XFUEL serves as a way to fund XTRABYTES, while encouraging developers and others to participate in this project. Offering a monetary incentive to push the XTRABYTES project forward is a real world solution where participants are paid for the hard work and time they put into this project.”
Why the interest in becoming a STATIC Owner? As with project coins, STATIC Owners will be paid “a percentage of transactions that is in direct proportion to their deposit in relation to overall deposits”. So, for instance, when ABC (coin) is scheduled as a trading pair with XBY, a STATIC Owner who buys a particular amount of ABC will receive a pro-rated percentage of each trade in addition to the deposit and withdrawal fee. This incentive ultimately determines the trading volume of worthwhile projects.
Initially created to trade XFUEL, the XTRABYTES X-CHANGE is set to initiate an entirely new trading ecosystem. Obstacles to project financing will get a reprieve with the introduction of project coins, a digital creation created with a simple point-and-click. Moreover, the success of the projects will simply be based on the potential to produce transactions fees.