Home Tech TRON Network’s First Decentralized Exchange Coming Soon!

TRON Network’s First Decentralized Exchange Coming Soon!

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TRON Network would soon have its first decentralized exchange (DEX) with TronWatch.Market!

SEEDGerminator, the seeding platform developed by the TRON Super Representative Sesameseed for projects working on the TRON network, now has another project in line to be seeded—TronWatch.Market. It is a decentralized exchange which charges a modest fee to carry out the transactions on the network. The aim of the project is to increase the popularity of the network.

The TWM tokens which aren’t sold during the token sale would be burnt, and so would 50 percent of the fees which it collects for listing and discounts. This would help them decrease the total supply of the tokens as the DEX becomes more widely adopted.

About the trading fees paid using TWM, this is what the official Medium blog has to say:

“We’ll be creating a not-for-profit contract anyone can use to buy and sell TWM tokens. This contract will automatically adjust price based on the current supply and demand. Our DEX will use this contract to exchange all trading fees collected in TRX for TWM tokens at the time trades are placed.

The value of this approach is that it drives volume for the TWM token. The TronWatch team and its affiliates will receive much of their compensation in TWM, and will need to trade that in the future. Arbitrage traders will purchase TWM (from our exchange or others) to sell back to the contract in order to keep the price stable.”

This is what they had to say about the listing fees:

“Every token on the TRON network may be traded on our DEX. There is no whitelist or approval required — it just works. In fact, we could not block a token from being traded, as we will be using decentralized and immutable smart contracts. However, there will be too many to show a list of every option for users to choose from. To address this, we charge a listing fee, paid in TWM tokens.”

Adding to it, the blog said:

“Listing a token costs 150,000 TWM. 50% of the listing fee is burned, reducing the total TWM circulating supply.

Token creators, including ICOs and Dapps, will want their tokens listed to help ensure adequate liquidity is available. This also creates demand for the TWM token and continuously burns TWM tokens, reducing the circulating supply.”

The best part of using the network is that the trading fees keep adding up so that at 5,000 TWM, you can trade for free—something which would help in the adoption of the DEX in the long run.

Also Read: TRON-powered Eggies Hits Soft Cap in Under a Day!

If you intend to stake TWM to feature a token on the DEX, here’s what the blog has to say about it:

“Our DEX will feature a few tokens on our DEX. This gives those tokens a prominent position so users take notice, perhaps visit the website for more information, and then consider a trade. Anyone can stake their TWM tokens to place a vote for which token should be featured. Staking does not cost users anything; it simply freezes the tokens until the user requests the tokens be returned. The token with the most votes ATM will have 0 trading fees for all users.

We believe this may be an attractive option for recent ICOs and token holders looking to get their name out there to grow their community, helping them build up liquidity so that future traders feel more comfortable considering their token. This gives groups reason to acquire TWM tokens and will temporarily take them out of circulation.”

 

 

Source: coinfrenzy.io