Inflation Costs


#1

Hi Adam. Thanks for letting me get the opportunity to ask you a question.

The white paper states the exchange’s operation is funded through inflationary costs added to the token holders, after the initial two year period, that in principle should be offset by the demand for the token. That said are there any measures in place, beyond the democratic vote among token holders, to protect token holders’ investment, such as an inflation cap, if demand for DGTX is not greater than the inflation rate?
Or will inflationary cost be continually added as it is the sole means of continued operation without periods of stagnant inflation beyond the initial two year period?

Currently, Digitex is slated to have three futures within its exchange, as stated in the white paper. Will this be the continued model of operation as Digitex moves into the future or are there plans to include more futures as operation continues? If so what would be the milestones necessary for the addition of new futures within the exchange?


#2

There is no hard coded inflation cap, instead the system relies on DGTX token owners acting in their own self interest and deciding democratically the rate of token issuance, if any. If the demand for DGTX tokens is so low that this system doesn’t work then it means the exchange is dead and there are no traders which would mean the whole thing is fucked anyway. Everything relies on there being a stable software platform with thousands of active traders, that is the fundamentals of the project, and that is what we are working on now. If we get the fundamentals right we’ll be able to get away with 1-2% inflation rates which will have a negligible effect on the DGTX price.

Not sure how we will decide what futures contracts to carry. Maybe we could put that to some kind of voting system too. I just don’t want to dilute the liquidity with a bunch of crappy markets, I’d prefer everyone to be trading on 1 or 2 very liquid markets. Because when you’re scalping and doing quick manual trades it doesn’t really matter what you’re trading anyway, all you want is liquidity and movement, you dont give a toss what you’re actually buying and selling.