Proposal name: Market-Maker-Bittrex-2203200
Owner: Arlyn Culwick
Cost: 3500 BLOCK
Voting: vote 72f667344c4ac9bff1830fcb266404fe48e463a571e0a9f39770657202c20150 yes

This proposal is to continue the operation of our market maker, GotBit, on Bittrex (BLOCK:BTC and BLOCK:USDT).

Why fund this proposal?
Market making has recently become an essential operational function in order to avoid delisting on Bittrex, who are now requiring a certain minimum volume per unit time for all coin pairings.

Market making is, in addition, healthy for markets. Its direct action is to increase the availability of capital for defined quantities at defined distances (in percentage) from the current price. Better capital availability transforms the risk profile of BLOCK for potential buyers. This, then, tends to grow the market in terms of (a) increasing its liquidity and (b) its volume. In a nutshell, market makers enable a market to move from a self-reinforcing state of low liquidity, low volume, high volatility, and thin order books, to a virtuous cycle of increasing liquidity and volume, decreasing volatility, and healthy order books.

Last month, we trialled GotBit at my own personal expense, and to date they have achieved consistently high volume and reduction in price volatility.

What this proposal pays for
This month’s proposal pays only for GotBit’s monthly fee, and does not cover my personal capital outlay thus far.