Update on the pDEX token

In an initial design of the new Incognito Exchange, an idea about a pDEX token was floated. Responses were varied; some community members felt it could be a good tool for growth, while some raised concerns that this would dilute the utility and value of PRV, and generally be a distraction. Both positions are of course valid - this difference in opinion was also seen within the core team.

Focusing on PRV instead of introducing a new token.

Ultimately, after lengthy discussion while following majority community sentiment across the forum, telegram, etc., a pDEX token will not be implemented for the official release. Incognito is still young. PRV is fuel for the network, and PRV holders are the backbone of the project. We hope this decision will be good for PRV in the long run.

Now that the first version of pDEX has been released, we are currently working to improve the product according to user feedback (thank you!). When the exchange is launched officially, along with liquidity mining, rewards will be paid in PRV.

Thank you everyone, for your ongoing feedback, and for contributing your viewpoints. This topic will attempt to break down the thought process behind these decisions.

The context and rationale.

The idea for a pDEX token was part of a broader vision for Incognito, where all privacy apps (pDEX being the first one), had their own tokens for independent governance, economy, and utility. The privacy layer for web3, every app with its own thriving community. It’s an exciting vision that we are committed to, but we ultimately felt that at this early stage, a new token could be jumping the shark a bit, and potential trade-offs may not be worth it.

Without making some rather large assumptions, it is difficult to predict at this time how a multi-token model will work in the network. So when in doubt, we decided to go with the simpler approach.

What this means for PRV holders.

At this time, PRV remains the sole token for the network, and the core team is dedicated to increasing utility for it.

  • The PRV hard cap remains at 100M, no extra PRV will be minted. Required PRV for liquidity mining etc., will be paid out of the DAO and treasury.
  • In addition to supporting programs like liquidity mining, it will also be used for governance across the Incognito ecosystem.

It’s a conservative decision, but we feel it’s important to reduce unpredictable variables so we can focus on an already complex roadmap and ensure we have resources for the fundamentals - community and product.

Let us know what you think. Your feedback and support keeps us going.

20 Likes

Very well laid out. I agree with the decision to postpone additional network tokens such as pdex. We are still in the very early days of this project and have many more, important, incognito items to work.

4 Likes

This is the right way to go IMO - you’ve passed a big hurdle being the revamped pdex and now its about cementing the rest of the ecosystem you’re trying to build upon (markets, apps, infrastructure).

3 Likes

While I agree with this decision whole heartedly, in removing my own bias in the argument I think the core team made the right choice. Not for the sake of PRV or any other reason, but that the decision was one that wasn’t nearly unanimous and one that is not “mission critical” to the core team. I’m not a developer so I have a more limited understanding of crypto projects but I consume as much as I can about crypto - not just financially but technically. The landscape is so vast and anything is possible! But that’s exactly the Achilleas’s heel of any project. They get too in the weeds with the possibilities and they unintentionally dilute the project. When this happens it becomes nearly impossible to do what is mission critical because time gets spent on unimportant tasks, and UX is usually an afterthought and leads to low adoption, and developers are left scratching their heads, or worse, getting defensive, as to why

Thanks for staying focused!

4 Likes

thanks my issue has been fixed.