If you missed last month’s official AMA with our CEO Adam Todd, don’t worry. Here, we’ll remind you what the Digitex Treasury is, explain how it will help our exchange, and when it will start. Here goes.
The Digitex Treasury allows us to apply effective ways of using our DGTX token supply and provide transparent actions to the community. With the public exchange launching early Q2, the first token sale on 1st March will allow early investors to buy in at a low price.
Once the exchange goes live, the price is set to increase dramatically. We already have about a million users signed up to our waitlist.
If only 5% of those users were active traders, we’d still have 50K active traders, which is a busy exchange and we expect a significant spike in DGTX value!
This will bring treasury investors a favorable ROI in a very short amount of time.
Even though we’re offering free trading to DGTX token holders, the back end of such a complex operation is not free at all. And we don’t want to have to rely on large investors to meet our goal of becoming a top exchange.
We want a transparent and clear path forward that could potentially delay the minting of tokens and help us realize our ambitious expansion plans.
Treasuries are not a new thing within the crypto space. Most cryptocurrency companies have treasuries of their own token which they usually sell secretly, often to whales and without the knowledge of the market.
The key difference with the Digitex Treasury is that we’ve physically locked up our complete amount for two and a half years. We’ve also published exactly when and how those tokens will be released and sold.
This gives the market complete transparency about what tokens we’re selling and when–nothing goes on behind closed doors.
Many well-known blockchain projects, such as Polymath, use their own treasury. In fact, their platform has locked away 7.5% of its total supply of tokens for five years.
Out of the initial 1 billion supply of DGTX, we have set aside 10% for the Digitex Treasury (100 million). This means that we won’t have to mint any new tokens for the sale and there won’t be any negative impact on token price resulting from inflation.
The life of the Treasury is two and a half years and we consider it the second phase of our revenue model–much like any regular startup acquiring funding in seed rounds.
The main purpose of our Treasury is to fund our operations without minting new tokens and still be able to offer a zero-fee model.
The tokens in the treasury will be sold to the public via an Ethereum-based smart contract directly from us. Starting on 1st March 2019, there will be an ongoing token sale of 10 million tokens every three months lasting for 2.5 years. That makes it 10 public quarterly sales until June 2021.
The tokens will be automatically released for sale and can be purchased in ETH. They will be sold at a premium because we don’t want to negatively affect the exchanges currently trading DGTX or allow any traders to dump and make a profit.
There’s also a $50,000 cap on the number of tokens that can be bought per individual during open sale periods. This will deter whales from coming in and buying everything up in one swoop. Digitex wants to make it a fair playing field in the best interest of its traders.
KYC will be implemented for those looking to buy tokens directly from Digitex and unfortunately, at this time, U.S. residents will not be able to participate. Sorry folks, the regulators just aren’t ready for us yet.
More to the upside, there will be no exchange fee. And the price you see is the price you get — so no slippage either. Transactions will happen in real time as soon as the ETH funds are confirmed.
As stated earlier, Digitex is not minting any new tokens. So, the DGTX token will not be affected by inflation for now because the stock to flow ratio is still the same. But when it comes to the price as seen in the market that is really another story.
Each round of token sales could yield a different result based on market sentiment and how many other factors are influencing the market price.
We came up with some possible price scenarios of $0.25, $0.50, and $1.00. If you want to know more about how much funds we could potentially make, read the initial treasury announcement. And remember this is over a 2.5-year period.
Here are the key points to take away about the Digitex Treasury:
Adding the Digitex Treasury is a feasible course of action to maintain the momentum in following our roadmap. This will allow Digitex to better deal with the expected–and unexpected–costs of operating and expanding in the crypto and futures market.
This helps to attain more independence from whale investor funding and strengthen the bond between the Digitex community. After all, what is an exchange without the people who actively use it?
The Bitcoin Podcast is one of the most established and respected podcasts out there, reaching a daily download peak of 10K at the height of January 2018. Check out their latest insightful interview with Adam below by clicking on the link. Hear how he brought Digitex from an idea to reality and what makes the exchange so appealing to futures traders from both the traditional and cryptocurrency industries.
When podcast host Dr. Corey Petty asks Adam how he got into crypto, he explains that it was all because of futures trading. Adam, as many of you know, was a short-term scalper and futures trader bugged by commissions for years.
Paying out commission fees often turned winning days into big losing days for him. He dreamed of a system in which traders could make a living without losing out to the house–but he never really thought it would become a reality.
When he discovered Ethereum and the possibility of creating his own token, Adam realized that he could build a trading ecosystem where trading in the token could remove commission fees.
The Digitex Futures revenue model works by aligning the exchange’s interests with its users. Instead of working against them, Digitex and traders want the same thing: token appreciation.
When Corey asks how Adam realized that he could actually make the whole thing happen, he explains that it was about 18 months ago “when it really clicked.” That’s when Adam wrote the Digitex whitepaper, started showing it to people and getting good reactions. He says:
“It took on a life of its own”
What started with an idea, all of a sudden became a reality–and a quarter of a million people on the waitlist for the ICO–which we all know, sold out in 17 minutes.
Adam explains that typical exchanges always work in the same way. It’s always the exchange versus the users since the exchange wants to make as much profit from the users as possible. However, with Digitex, our interests are actually aligned.
Since our revenue comes from a rising token price, and traders want the token price to rise as well, it’s a win-win model for everyone. We make money from the appreciation of value from the tokens, and minting a small number of tokens each year. That’s how we can make a profit without siphoning money from the liquidity pool in the form of commissions.
Everyone needs DGTX to take part in the exchange. But the small inflation caused by minting tokens will be offset by the demand for tokens and rise in token price.
Corey aks how token holders will feel about the inflation and how the minting works and Adam explains that the token holders themselves decide and control the level of inflation.
It’s all done by a voting mechanism and the whole Digitex community votes on all proposals put forward. They have to decide whether to agree on token minting to finance the exchange or not. So the people who are affected by the inflation rate are the ones that get to vote on it and control it.
Just like all projects that evolve over time as technology enables, Digitex Futures’ initial market was cryptocurrency users. However, after exploring the size of the futures market and the number of retail traders out there trading forex and traditional futures, the audience has widened.
While cryptocurrency users will be our largest target, it won’t be long before Digitex is also catering to traditional traders. Our exchange will soon be offering futures trading on more than cryptocurrency. We’ll be adding markets like gold, oil, tech stocks, metals, indices, and bonds–with commission-free trading on all types of markets.
Once the CFD market finds an exchange that’s aligned with their interests, Digitex will help to bring more people into cryptocurrency.
Corey points out that one challenge ahead for us will be the learning curve and teaching traditional investors about crypto, the concept of non-custodial accounts, smart contracts, etc. But we’re more than prepared for that. We’ll be releasing plenty of educational material for all our audience to “bridge that gap.”
Futures trading is a massive industry and zero commissions on futures trading will naturally attract futures traders from all walks of life.
The fact that the exchange is non-custodial will also relieve people who are put off from entering crypto because of hacking attacks on custodial exchanges. Adam enthuses:
“The audience is massive”
Even if only 5% of the million people on our waitlist follow through, that’s still 50,000 people trading! That is a busy exchange, and that will attract professional traders and bring in more liquidity.
Of course, the most important development coming up is launching the exchange to the public. That’s why we’re pooling all our resources into the quarter two public launch.
Adam explains that development is on track and that we’re even bringing several things forward that we had on our road map. These include a mobile app and a public facing API.
Adam’s been busy over the last few weeks building up the development team and we’ve now onboarded some of the best smart contract developers in Moscow. He says:
“We have a really solid team now.”
With quarter two approaching fast, it’s non-stop at Digitex right now! So stay tuned for the latest developments and keep referring friends. In the words of Adam, things are “about to get crazy.”
The internet changed the way we work forever and blockchain technology is quickly joining the charge. But access to global talent, international markets, and the ability to operate 24/7 can also have its drawbacks. When your team is geographically dispersed and working from remote locations, it’s not always easy to keep everyone on the same page. Here’s how Digitex (for the most part!) effectively manages our remote team.
Just to provide a little context, remote working is on the rise. In the United States alone, freelance workers are expected to make up half the workforce by 2020. The crypto industry, in particular, is paving the way for digital nomads.
Just consider the major cryptocurrencies like Bitcoin, Ethereum, Dash, NEO, Litecoin, and Tezos with developers, miners, and marketers working all over the world!
As blockchain technology is still fairly new, it can be hard to find the right people with the right skill set on your doorstep. Luckily for us, hiring the best talent no longer means we have to manoeuver them across the world. We don’t all have to be sitting in the same office for the company to run effectively.
Of course, there are times when nothing beats sitting down and thrashing things out face to face in person. For example, when Adam travels to Dublin to spend time with the core development team. However, for the most part, the real work continues from various locations, as long as everyone stays motivated.
Here are a few ways that Digitex manages to maintain productivity, minimize misunderstandings, and effectively manage our remote team.
All the team at Digitex is personally invested in the project and not just in the form of DGTX tokens. We believe that we’re working on a game-changing exchange that will set a new standard in the industry. And staying positive is key to keeping staff morale high.
There are times in a company when its workers doubt the strategies of their superiors or hear rumors about the safety of their jobs. For our team, the first time we really had to deal with our own internal FUD was after the beta version got delayed.
In reality, we all know that projects are often delayed. This is the nature of software development, especially in the blockchain industry. Look no further than Bakkt, Kodak, Litecoin, Dash, the VanEck Bitcoin ETF, and Ethereum if you want examples of that. All major projects with upgrades or launches put on ice after executive decisions were taken.
Yet, it’s still completely logical that people will be disappointed, and this was reflected in our token price. Staying positive, despite the negativity from a small minority of the community, is a powerful way of keeping our team united.
We manage to achieve this by having a transparent policy and pretty much zero hierarchy. Adam may be the CEO but he’s not above listening to anyone or their suggestions. Everyone at Digitex can express their doubts, concerns or suggestions at any time–and they are always listened to without judgment and with respect.
Adam ensures that the team stays positive by reminding us that despite the hard times, the exchange is making amazing progress. We may have underestimated the complexity involved in the scale of our project at first, but we’ve scaled up to ensure we beat everyone’s expectations.
Managing effective communications can be a real headache for remote teams, especially with employees spanning various continents. There are plenty of ways to streamline communications, though, and Digitex’s tool of choice is Slack.
We have a weekly team call with all members to discuss what’s been going on what’s coming up. And we hold it at a time that respects the time zone of each staff member’s country. It’s hardly effective teambuilding if you’re constantly asking employees to stay up late into the night to talk about work.
All day to day communications are generally through Slack, Skype, and Telegram, and often via chat. Wherever possible, we use emojis and gifs to back up the intentions behind the words. And since misunderstandings can happen by mistake, we make sure to hop on a call whenever needed.
As Digitex has an open door policy, everyone has an equal right to contribute to the conversation and give suggestions. Not only does that make all team members feel valued, but it ensures that we make the right moves according to the team’s expertise. Adam strongly believes in hiring the best people and letting them do their jobs.
Everyone at Digitex knows exactly what their job involves and how to go about doing it. But how do you avoid team members not doing their work and, say, sitting on the sofa watching the TV instead? Well, luckily we’re all such crypto addicts that we’re all glued to the computer anyway! But we also have targets and accountability.
We’re given the necessary trust and space to do our jobs without feeling the constant pressure of being watched. But we also have set goals and work to deliver. It would be pretty obvious if anyone on the team wasn’t doing their job. We’d have a mutiny on our hands from our social media community, exchange support complaints, a blank blog, and plenty more besides!
Despite being given deadlines, if we do miss a target for any reason, we have the support of our CEO to make the best decisions. For example, when it came to the beta onboarding, the developers made an executive decision to channel resources into the public launch and delay for a few weeks.
This was never going to be a popular decision with anyone (inside the company or out), however, if it means that the public launch will be stronger with additional features from the get-go, and we can scale up development, we understand that it’s for the benefit of the team and the Digitex community.
This is just a few of the ways that we keep our team united, productive, and happy. And we’re confident that as we prepare to scale up for growth, the skills that we’ve developed from working remotely will help us on the way.