Guest: SKY, MDEX CTO
Media: Please first briefly introduce MDEX and its current operation status.
SKY: MDEX is a decentralized exchange with automatic market making based on the concept of capital pool, and is committed to building a DeFi platform integrating DEX, IMO and DAO to provide one-stop liquidity services for more high-quality assets and provide users with a more secure and trustworthy, asset diversification and cost-effective trading experience.
MDEX.COM supports BSC, HECO and ETH decentralized cross-chain trading protocols, and is ranked first in CoinMarketCap and CoinGecko’s DEX ranking. It combines the advantages of the low transaction fees of the Firecoin ecosystem chain and the prosperity of the Ether ecosystem, and aims to integrate the advantages of multiple chains to create a high-performance composite DEX ecology, with liquidity mining and transaction mining. The dual mining incentive of liquidity mining and transaction mining maximizes the return to the participants, and realizes the self-driven value capture ecological loop through the fee buyback destruction mechanism.
Up to now, MDEX has been deployed on both chains, and in 4 months of operation, the daily trading volume of MDEX has far exceeded that of Uniswap, and its total value of locked position (TVL) has always been the first on the Heco chain. With a daily average of 188,800 visitors and nearly 1 million views (PV), the number of coin-holding addresses on BSC ecological MDX alone is over 23,200, and the cumulative number of transactions is over 4.77 million. The average daily number of interactive independent addresses on BSC ecological MDX is 5,046, which can be called the fastest growing decentralized trading platform.
Media: Unlike most DEX token governance, MDX has introduced “buyback destruction” and “buyback reward” mechanisms, which give the token greater financial value. Can you introduce these two mechanisms first?
SKY: Another difference between MDEX and other swaps is the introduction of a “buyback destruction” mechanism plus a “board reward pool”, which feeds user contributions back to the user in terms of fees.
MDEX’s platform revenue comes from the 0.3% transaction fee, of the 0.3% transaction fee, MDEX will feed the MDX ecosystem, 0.1% will be used to promote the development of ecological projects, 0.14% will be used to reward mining, users’ rewards will be distributed by the board reward pool on MDEX platform, and 0.06% will be used to repurchase and destroy MDX.
MDEX will inject a corresponding percentage of the daily platform fees into the pool of funds to be repurchased, and the repurchase will be automatically executed by the smart contract when the repurchase price (72-hour MDX average price) is triggered to destroy. If it is not triggered, it will continue to accumulate into the repurchase pool.
Media: What is the current status of MDX repo destruction? What is the market response?
SKY: Up to now, the double chain has destroyed 46 million MDX, and the total buyback amount is 1,38,000,000 USDT. From the user’s point of view, the perception is not strong, so there is our next buyback reform, of course, whether the change of the buyback game will have a better effect also needs to be tested by the market. So far, people are still looking forward to this interesting buyback.
Media: As far as I know, MDEX has recently introduced the MDX buyback destruction lottery program, what is the main purpose of this program? Why did you introduce this program?
SKY: MDX, as a governance token, is one of the important ecological segments in MDEX’s strategic deployment, and the team is constantly increasing its application scenarios and building its perfect value system.
The mechanism of repurchase and destruction of the handling fee realizes the self-driven value capture ecological closed loop. Although MDEX currently spends hundreds of thousands of dollars per day for repurchase and destruction, it still does not effectively boost the confidence of community users in MDX, so the team has adjusted the destruction mechanism scheme in the hope that more users can participate in it and jointly enhance the value of DEX.
The buyback destruction scheme is a fun game that any user holding MDX can participate in. Users who put MDX into the burning pool will get a participation number, and if the participation number matches the announced number, the user will be rewarded. This buy-back destruction program is fun and interactive, and some users can get the corresponding benefits from it.
Media: What are the specific rules of this MDX buyback and destruction sweepstakes program? What is the expected return for users to participate in this activity? Will it bring new value support to MDEX?
SKY: When users put MDX into the burning pool, they will get three data: the transaction hash, the time stamp of the transaction hash and the serial number of the block to which the transaction belongs, and these three information will be arranged and combined in order to perform hash operation, which will form a participating number. If the number matches the published number, the user will be rewarded.
When the MDX is put in, the number obtained is exactly the same as the announced “Superstar” number in order. Then the user will be awarded the “Superstar” prize. Likewise, if the number of entries received after the MDX is exactly the same as the announced “Stellar” number in order, then the user will also receive the “Stellar” award. Users who do not receive a SuperStar or a Star will also receive the corresponding participation bonus.
For example, if user A puts in MDX and gets a participation number of 123, which is exactly the same as the announced “Superstar” number in order, then that user will get the “Superstar” prize.
Now, let me summarize the three prizes.
1) Superstar is the biggest prize, according to the MDX invested by the user, 10% of the MDX in the burn pool will be divided, suppose A participated in an activity, invested 10 MDX, and got “Superstar”, and all the people who got “Superstar”, for this reason Then the “percentage” of A’s investment in the “Superstar” prize pool is calculated as 10 ÷ 1000 * 100% = 1%.
(2) Stellar is the second prize, also according to the proportion of MDX invested, divide 100,000 USDT, the reward calculation method is the same as “Super Star”.
(3) Planet is the universal prize, according to the proportion of MDX invested, the prize will be divided into 200,000 USDT, each participant can get the corresponding reward, the winning rate is 100%.
Media: MDEX buyback destruction program as a lottery program, how to ensure its fairness and impartiality? When will users know their rewards after participating?
SKY: In order to ensure the absolute fairness, impartiality and transparency of the MDX Burning Game, the MDEX team has designed a set of rules for calculating the participation numbers to ensure that the participation numbers obtained by users each time are random, verifiable and uncheatable. Every transaction can be checked in the block browser, and users can check your transaction hash, timestamp, location serial number and participation number in the detailed record. Users will immediately be able to know if they have won a prize after the participation process, and there will be a pop-up window to prompt them, but the exact prize split will only be known after the end of the round.
Media: Can you tell us more about MDX’s inflation data? What is the importance of the buyback destruction mechanism to MDX?
SKY: The inflation rate was 2.56% at the beginning of May when MDX was analyzed, and now it is around 4%, which is a relatively healthy fluctuation range and acceptable, a healthy inflation value. The link about the rules for generating the destruction voucher numbers can be viewed to ensure absolute fairness, equity and transparency of the burning game.
As we have emphasized before, MDX project buybacks are actually destruction, not the project buying the coins away, and there is a difference between the two. Destruction means that there are fewer MDXs in the world, and MDXs will slowly shift from inflationary to deflationary coins. The buyback and destruction mechanism can effectively bring MDX into a positive cycle, which will have a positive effect on the development of MDX. If the value of MDX is not raised through buyback destruction, miners’ income will be lowered, the price will not be raised, miners will flee, TVL will drop, transaction volume will drop, fees will drop, MDX coin price will drop, and it will enter a vicious cycle!
Media: Will the program be upgraded and how will the MDX ecosystem be built and create value for users in the future?
SKY: Whether we will make another change or upgrade needs to wait for the market’s reaction to the gameplay. If a game like Burning Black Hole can be recognized by most users after it is launched, then we can make corresponding adjustments after weighing the opinions of users.
MDEX is a platform that integrates DEX, IMO, and DAO, and the flow to the nature of the bet up to 5.8 billion USDT, such a value platform, its token MDX will definitely out its value, just a matter of time. mdex project is not really decentralized like bitcoin, MDEX first of all it itself as an exchange, to constantly access a variety of new public chains, to expand the the range of allowed transactions. So, it’s up to each of us to work on improving and perfecting it.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/mdex-buyback-destruction-mechanism-new-upgrade-burn-mdx/
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