Powering Digitex City: The DGTX Mint Schedule
With the launch of Digitex City almost upon us and the first DGTX minting date coming up next month, it’s time we shared the DGTX Mint Schedule with you. We’ve devised a sustainable and cohesive plan to ensure high liquidity on all our markets with a capped supply of DGTX to ensure its built-in ongoing scarcity. Read on for details below.
The original Digitex whitepaper published in December 2017 stated that we would build a commission-free futures exchange and start minting DGTX tokens in January 2021 to cover the operational costs instead of charging transaction fees on trades.
Due to the extensive expansion of the Digitex platform and vision over the time since the whitepaper was published, we present three core changes to how DGTX minting is conducted. The changes are:
- The first token mint will take place on December 10, 2020, just before the launch of Digitex City, instead of January 2021.
- The purpose of the mint is not only for revenue generation via straightforward token sales. Newly minted tokens will be used in more creative ways to incentivize users to buy and hold DGTX and DUSD, thus increasing demand.
- The number of DGTX to be minted and at what frequency will not be open-ended or determined by community vote because markets do not respond well to such uncertainty. Instead, the complete minting schedule is stated in the table below, after which no more minting will be allowed for any reason.
DGTX tokens will be minted on the following schedule:
Digitex City is launching on December 15, 2020 and will immediately feature several rewards programs and systems that attract users, increase liquidity on our markets, and increase demand for DGTX. These programs offer users daily DGTX rewards as an incentive to perform actions that are beneficial to the Digitex ecosystem, such as market making on our on-chain and off-chain markets or adding liquidity to the DUSD system. Therefore, all rewards programs require a balance of DGTX or DUSD to operate.
By expanding our token minting mandate beyond merely revenue generation to funding such rewards programs, we can effectively use new tokens to generate traffic and buy liquidity, which directly benefits Digitex City, the core utility of the DUSD token. More demand from more users in Digitex City offsets the inflationary cost of minting.
Bitcoin is the best example of how minting tokens as rewards can increase the value of a cryptocurrency. In 2009, 1.6 million Bitcoins were created. Minting new Bitcoins every 10 minutes since then has grown the circulating supply to over 17 million Bitcoins over the last ten years.
Despite this tenfold increase in supply in only ten years, the price of Bitcoin has grown exponentially during that same period. This growth has happened because the value created by minting those new tokens outweighed the inflationary cost of minting them. Bitcoin’s economic model clearly demonstrates that there is nothing intrinsically wrong with increasing the supply as long as there is demand for the new tokens and there is an ultimate cap on the total number of tokens that can be minted. In Bitcoin’s case, there is a maximum possible supply of 21 million BTC, which is 13 times bigger than the initial supply.
The same principle will hold with minting DGTX tokens to attract new users into Digitex City. By minting DGTX tokens and then distributing them as rewards for performing actions that stimulate the Digitex City economy, we can attract large numbers of users. And the steadily diminishing quantities of newly minted DGTX each quarter will gradually and predictably go down to zero, capping the total supply at 5 times the initial supply. After March 1, 2028 the DGTX smart contract’s ability to mint tokens will be transferred to the 0x0000….000 burn address, making it impossible to mint any more DGTX for any reason.
The model is further strengthened by the fact that DGTX and DUSD have multiple utilities in the Digitex City ecosystem and will be in demand from a large user base of active traders, gamblers, investors, advertisers, entertainment seekers, and others.
Therefore, token minting creates a tremendous opportunity for Digitex City to build and nurture a large user base, from which many other revenue streams will be developed that will eventually replace token minting as a source of revenue and rewards. And as demand for DUSD increases at a rapid rate for the first few years, the market will welcome the added DGTX liquidity created by minting.
On Thursday, December 10, 2020, the first scheduled mint of 300,000,000 DGTX will take place which will be allocated for the following purposes:
As you know, we’ve come a long way since Adam published his initial vision for Digitex Futures. We’re excited by all the new initiatives we’re about to share with you and the many ways in which you can earn rewards on your DGTX and DUSD. With the massive extension in appeal of Digitex to a wider audience, our user base is set to expand exponentially as more and more people take part in highly liquid commission-free markets and generous rewards programs.
We know that you’ll have a lot of questions, so please feel free to reach out to us on our usual channels or fill in this Google form here. Also, keep an eye on our blog, as we’ll be answering some of these tomorrow. Finally, be sure to tune in at 16:00 UTC on Wednesday, December 9, as Adam will be live for one of his customary AMAs. Until then, happy trading!