Proposal Name: 1987200 BlockDX liquidity
Cost: 20009 BLOCK + 10 BLOCK proposal fee = 20019 BLOCK
This proposal is to save unused superblock funds to create liquidity on BlockDX; Blocknet’s own decentralised exchange.
A basic aspect of a cryptocurrency is its supply availability. Coins (or tokens) that are more available have a fundamental advantage over less-available coins. A second aspect to consider is exchange usefulness and longevity. Exchanges which are used regularly survive and thrive, those which are not used die out.
Historically, BLOCK has been poorly available, both in terms of exchanges it is available on, and in terms of the number of coins available on exchanges. BlockDX usage has been low and has not grown as anticipated on significant milestones like the release of XLite.
This proposal is made with two objectives:
- to help increase BLOCK availability to a key audience: the non-Blocknet community.
- to increase usage of BlockDX
BlockDX is simply the best place for new users to acquire BLOCK so long as they already have some other supported currency and a modicum of determination to acquire BLOCK.
It may not be the easiest place but that is being worked on separately and in time even the potential users who are too lazy to attempt to use BlockDX in its current form will be able to do so. To help reach that happy point we also need to increase usage of BlockDX in its present form.
BlockDX is the most secure place for users to acquire BLOCK and to trade other currencies due to its entirely decentralised nature.
BlockDX is available from anywhere in the world with no KYC restrictions or requirements.
There are thousands of existing cryptocurrency users with the skills to be able to use BlockDX in it’s current form. They just need to install a Blocknet wallet which is already familiar given its similarity to the QT wallet they already use, and optionally, install XLite to be able to trade other coins without installing additional wallets.
Funds from this proposal are community funds and will be managed as such (e.g. publishing the addresses holding coins).
The exact methods by which the objectives will be achieved have not been worked out but there has already been discussion in the community about creation of market making bots to trade or mirror CEX-trades on high-liquidity or otherwise popular pairs.
The community has already seen fit to provide liquidity in an AMM DEX and several members have expressed the view that they would like to see the same happen with our native BlockDX. This proposal exists to provide that opportunity and to test the support of the community for BlockDX.
@walkjivefly will hold the funds only until they can moved into a multi-sig address. They will remain in the multi-sig address until the details of how best to use them to meet the objectives are decided and implemented.
In order to meet the objectives further superblock proposals may be made.
Over the past month, community discussion has enjoyed broad support for bolstering BlockDX usage provided that doing so does not distract from the following:
- Block DX improvements
- Roadmap funding
Additionally, people have stressed the importance of not placing sell pressure on BLOCK.
This proposal is not using any funds that could be spent on development.
It is using spare space in the superblock after all other proposals are submitted.
This proposal will not place any sell pressure on BLOCK.
The funds will only be spent on increasing BlockDX liquidity in sustainable ways, not used to subsidize trades on BlockDX in ways that quickly deplete the funds without having created a lasting increase in BlockDX liquidity. Some of the funds may be used to provide initial liquidity for trading bots.