Launch pDEX v2 & hit 650k In trading volume.

This needs clearer communication.

This is not a vc funded project, but removing trading fees has a impact on liquidity providers and competing against partners like kyber … not smart

The ux still leaves a lot to be desired and liquidity is low on most pairs, no arbitrage opportunities between usdt and usdc or dai for example.

Pdex can’t be the next coinbase and doing icos seems like a stretch with low use and liquidity.

I also wonder how the pkyber integration will connect to pdex?

Why use pdex when the most liquidity is on kyber … and kyber is getting cross chain assets soon.

This plan seems confusing in light of where the market is going and is stealing away from the reason I think this works: private trading, which is still not optimized.

This needs to be explained better. It honestly feels like a bunch of buzzwords, trends slapped together with little thinking about how they all fit together.

Plus node owners are annoyed because you just took away part their income by eliminating trading fees, when node earnings are uneven as it is.

Please do a better job of explaining this.

3 Likes

The node owners take the network fee which is cut while trading. However, there is a problem for the liquidity providers here. How will they earn the money? From the arbitrage? Currently, the liquidity providers can some money only if they invest in rewarded pairs like PRV-XMR, PRV-USDT. What about the others? @duy

2 Likes

so good to hear from you @abduraman!

you’re absolutely right that node owners don’t earn trading fees – they earn transaction fees. trading fees is a specific pdex fee, which is different from the general network transaction fees.

so zero trading fees won’t affect node owners’ earnings. in fact, i think node owners will likely earn more transaction fees now because zero trading fees will encourage more transactions and therefore more transaction fees.

re: liquidity providers. we’re still working out the mechanism. but here is a quick recap of it.

  • for now, liquidity providers are pretty happy with earning liquidity rewards. if you haven’t had a chance to check it out, take a look at @andrey’s post here.

  • i’m working out a mechanism for liquidity providers to vote on the trading fees of the pool they’re in. so if you’re a liquidity provider for a specific market/pool, you own a share of that market. with that share, you can vote on the trading fees. so starting out it could be 0.00% but it could be increased or decreased up to the pool shareholders. i’ll try to draft it up and share it in a few days.

hope you’re doing well!

7 Likes

Hi @duy: we’re raising questions about the current transaction fee model and long term blockchain health here:

The Incognito Network: Ponzi or Economically Sustainable Blockchain?

TL;DR: fees are way too low for more adoption to make much of a difference.

Please chime in. Thanks.

2 Likes

@davoice321 i’d love to chime in but i don’t think i can add much value to that conversation. i don’t understand tokeneconomics – there are too many tokeneconomics “overnight experts” nowadays. i never understand short-term traders/investors – everything i invest in, i don’t expect ROI at least 5 years from the investment date.

personally, i think the tokeneconomics discussion around prv at this point is premature optimization. but – to be clear – my opinion is just one among many on the core dev team and definitely just one among many in the community.

i’m 200% focused on products & users. by users… i mean… actual people who use incognito products, not those who speculate on prv. so far, we’re pretty happy with the traction. and we’ll keep working on it.

5 Likes

Actually its not mumbo jumbo neither about speculation.

Like Satoshi did, a cryptocurrency needs a solid economic model from the very beginning, otherwise its not trustable.

@duy I pointed out a long-term vulnerability of the current economic model which will effect investors in 10-40 years.

Premature optimization is a great concept in code, not a good one in economics.

4 Likes

Thanks for your comment.

I don’t think that talking about transaction fees is premature optimization.

This answer about the failure to consider or even think about transaction fees seriously makes me wonder whether the economics at the core protocol level have been well thought out.

Right now, Incognito is having some success because it’s still early in the protocol’s lifetime. Growth is to be expected, so no surprise the protocol is gaining traction.

But, like I said in the other post, the protocol’s success (economically) is due to the low supply and the fact that everyone is still staking.

Once the price of the PRV token reaches a certain point, you’ll see the staking level drop from 86% where it is currently because people are holding the token for price gains, to much lower, perhaps 35% or so, or less because:

-People want to take profit (naturally)
-Transaction fees are so low that it does not make economic sense to secure the network to make crypto due to transactions over the long term.

So, the price of the PRV token will drop, more stakers will leave to take profits and the network is under-secured. It’s a vicious cycle.

There are no:

-Lockup periods for bonds so that the network does not collapse due to speculators taking profits
-Economic incentives to keep stakers in the game for longer time periods to earn on their investment

So, it’s not premature to be worried about the role transaction fees can play in making sure the network remains strong over a 3-5 year period.

So, you want to optimize the cryptoeconomics early to make sure the network lasts over time.

Even Satoshi didn’t know whether Bitcoin would be around after 10 years, but what he did was think about the economics at the beginning by:

  1. Creating transaction fees so that miners could benefit from greater utilization
  2. Forced a shift toward network utilization being the main economic driver by reducing issuance over time
  3. Used scarcity as a means of using human psychology (greed) to lock in the value for the token and ensure that people know that there will always be 21 million Bitcoin.

As for Incognito:

  1. The reducing issuance and fixed supply align with Bitcoin
  2. The tokeneconomics are weak because they don’t discourage or take advantage of spammers and don’t align network use with miner compensation.

Right now the team is winging it from an economic perspective (with the recent 0 trading fees, which raised questions about how liquidity providers would get paid, again in PRV, whose value is based on speculation, rather than in cryptos used in transactions.)

It’s worrying tbf.

Thanks for engaging.

4 Likes

hey @davoice321… appreciated for taking the time to write a long comment. i don’t have much to comment on tokeneconomics. but i wanted to clarify on the product & user side: incognito implements an auction model for transaction fees. so, the higher the user is willing to pay for her transaction, the sooner the transaction will be processed by nodes. hope that’s helpful to you and other members on the tokeneconomics discussion.

3 Likes

Good Morning Duy…Let me give incognito a little prospective, first I am older, but I have plenty of resources and I very much would like to use and trade on incognito… But because smart phones do not work here I am prevented from trading with you as I cannot create an acceptable wallet…I currently use ledger live hardware wallet on my PC and feel comfortable with it, if you were to integrate your system with ledger you would be amazed at just how many more people like me would trade, stake and provide liquidity…

2 Likes

@andrey, congrats! this proposal got 5/5 so i will move this under “funded projects”. please share with the community weekly update.

2 Likes

Hey guys!

Thank you everyone who participate in trading. It helping us to bring Incognito DEX up.

I would like to share with you the latest progress made by growth team on execution of current proposal.

Trading volume since May 1 until today hits ≈$300k. It’s really good start, and we are not going to stop :rocket:

Beside the main trading pairs we started initiatives (in progress)

  • actively talking with ERC20 projects in terms of listing them on DEX
  • preparing self-listing flow for projects
  • working on fundraising initiative on incognito chain by utilizing the DEX.

Planning to share more news within next week.

:exclamation: Important, if you know a project which is looking for listing or fundraising please introduce us!

3 Likes

Please :pray::pray::pray: don’t promote or encourage any anonymous IEO/ICO onto the chain, this will create an high profile of shady stuff thru it. First of why do you even trying to get money anonymously if it’s to really build a product?? We can let people invest in ICOs privately outside of the chain, but not allowing people you don’t even know to raise money anonymously through your chain. This move alone may activate regulators to come after you.

Incognito doesn’t run an ICO, don’t sell tokens, it’s even NOT an ICO agency.

Incognito is a decentralized protocol and people can use it even if we don’t want them to use. More likely projects which will do fundraising should take care of legal part of it.

I haven’t heard that Vitalik has any problems because of thousands of ICOs happen on Ethereum.

I got what you mean, that it we will sit quite there will be less attention, but why do you think regulators may come to me if someone run it on our chan ?

2 Likes

Hey! I get what you mean but what I was saying is do not encourage it or incentivize it, or propose projects to do fundraising thru the chain. Just let them come independently do whatever they wanna do and leave. Just like in the recent umaprotocol ieo on uniswap. Uniswap didn’t say anything about that ieo, never they promoted it or supported them, not even a single tweet about an IEO on their protocol

3 Likes

Updates for the week of May 4 - May 8, 2020:

  • Finally, We have launched pdex rewards screen after a delay because of some issue.
  • We are working on pKyber. It will be released next week.
  • We are also working on new pDex flow (removing deposit/withdraw).
4 Likes

pDEV v2 has been released today. You can check it on the app

4 Likes

Hey guys!
I would like to share the progress we got last during this month and goals we reached:

On May 31:

  • We reached $2.8M In trading volume (+$1.3M compare to April)

image

image

6 Likes

That is some pretty incredible growth in trading volume! Great job to all the team for the hard work in pushing this project forward.

3 Likes

Keep pDex/Incognito going the direction it is. Let The regulated boys like Binance and coinbase allow there uses to be “active” Crypto traders. What Incognito provides, everyone of Binance and Coinbase users could benefit from. A way to keep those earnings private. To me that is what Incognito is all about.

We are asset protection as far as the investing world would see what incognito provides IMO.

3 Likes

Congrats to the team for the nice trading volume.

I can’t wait for pkyber to do all my trading within incognito. Keep up the great work.

2 Likes