Recap – AMA with Adam
Following on from Monday’s announcement about the DGTX Mint Schedule, Adam has been back in front of the camera to address all of the questions and feedback that we’ve had over the last few days in one of his regular AMA sessions on YouTube. In this in-depth session, he explains why we’ve made the decision to announce all our minting plans upfront and why we believe the plan is robust enough to drive DGTX prices by attracting users to the Digitex City ecosystem once we launch.
Adam opened the AMA by confirming that we will launch Digitex City on December 15 as planned. He also explained how we will phase out the DGTX-denominated futures markets and replace them with DUSD-denominated markets. On December 14 at noon UTC, we will automatically settle all open positions on the Digitex exchange.
From December 15, we will reopen trading with Digitex City, with four futures markets and eight spot markets live from day one. Adam explained that although this may have a temporary impact on liquidity, it means we have a clean break in starting Digitex City from December 15 with only DUSD-denominated markets.
The Minting Schedule
Adam moved on to the topics regarding the minting schedule. He explained that the original Digitex white paper stated that our revenue generation model would be to mint tokens, and we have evolved this concept. Minting tokens offers the vast creative potential to attract and retain users, get referrals, and create liquid markets beyond pure revenue generation.
Adam also explained that minting tokens according to community votes is likely to negatively impact the DGTX price. By stating a plan to mint tokens upfront, in one go, we may take a short-term dip in price, but it offers the markets certainty regarding what will happen over the coming years. This certainty offsets any risk that minting will cause price uncertainty in the future.
Adam also established that the value of a cryptocurrency is driven out of demand, not out of supply. Increasing supply by itself doesn’t impact price, providing there is a demand. Furthermore, by using an increased supply of tokens to incentivize demand, there is a potential for price to realize significantly higher gains.
He confirms that when we do the first mint tomorrow, we will allocate the tokens to wallets dedicated to a specific purpose, whether that’s a reward program or the Treasury.
Many questions focused on the supply of DGTX or whether we would consider reducing the number of DGTX tokens to be minted. Adam reiterates several times that we are focused on the number of users and using the DGTX tokens to attract new users. It is the users that will drive the price, not the supply of DGTX tokens.
In response to questions about whether or not Digitex plans to mint more tokens or change the minting schedule in the future, Adam confirmed that it’s possible to pre-mint all of the tokens in advance and lock them into a smart contract that will only release them according to the minting schedule. This should alleviate any concerns about future changes to the minting schedule.
What to Expect from Digitex City Launch
One participant questioned whether or not the Digitex City markets will be liquid from day one. Adam confirms that we expect to see a temporary drop in liquidity as the DUSD markets gain traction. However, with liquidity mining rewards, we expect liquidity to pick up fast as we start gaining traction.
Another question came up around the different allocations of DGTX rewards to different programs. Adam outlined that we expect some users will participate in multiple rewards programs, and those who are minting DUSD can use them in other programs. Therefore, it makes sense to weight the rewards accordingly. In a later question, Adam also confirmed that we’ll continue to monitor the situation to make sure we’re optimizing rewards for the best participation levels.
One participant was concerned about the kind of bugs that we may experience with Digitex City from launch, given that we’ve mentioned we’ll need to test out some features. Adam confirmed that we already have a working exchange, so we anticipate any bugs will be minor interruptions to the UX and not anything that will jeopardize traders’ funds.
Several users questioned our listing strategy and whether we plan to get DGTX listed on more platforms. Adam confirmed that we are currently focused on decentralized exchanges, as they represent a democratic and cost-effective way for us to increase DGTX liquidity without handing over listing fees and paying external market makers.
Market Making on Digitex City
Adam explained that we want to avoid using professional market makers, as this works to the detriment of our users. The liquidity mining rewards program is designed to ensure we have liquid markets on the exchange, created by our users who will be incentivized by the prospect of minute-by-minute rewards.
He also confirmed that the liquidity mining rewards will be allocated according to the markets’ size, as we expect there will be more market makers trading the popular BTC futures than XRP futures, for instance.
Some users have a mistaken perception that we aren’t marketing Digitex City. Adam explained that we have been marketing since before the ICO and have seen several notable successes. Simply placing ads on platforms like CoinMarketCap isn’t necessarily effective and doesn’t constitute a comprehensive marketing strategy. Media buying is also not the best way of getting traffic, particularly given that the biggest platforms like Facebook and Google ban cryptocurrency advertising.
We have plenty in the pipeline, including referral programs, a viral marketing campaign for the Digitex Connect platform, and directing users to our email list. We’ll also be working with content creators and influencers to help gain early traction for Digitex Connect, which will be one of our key drivers of traffic to the exchange, gaming, and other features of Digitex City.
Adam explained that through these kinds of activities, there’s no reason why we can’t attract millions of users to Digitex City. Of course, nothing is guaranteed, but Digitex has survived for three years, and we’re still going strong. Everything we’re doing is designed to drive more users to Digitex City, and if we succeed, the price of DGTX will follow.
Where does Adam see DGTX in five years? Adam confirmed that our goal will always be the same – drive users for the Digitex City ecosystem and value for the DGTX token and its holders.
Adam wrapped up the session by reiterating that Digitex supporters shouldn’t focus on the supply of DGTX but be mindful that users are what creates value. The newly minted tokens will only be used to attract more users.
This was an extremely in-depth AMA, and we’ve only recapped the highlights here. If you want the answers to every question Adam covered during the session, make sure you watch the event on our YouTube channel.
Thanks for joining! We look forward to seeing you in Digitex City. Cheers!