New Decred (DCR) Decentralized Exchange (DEX) Proposal Submitted by Founder to Politeia Community
Politeia is a development community that was formed in October 2018 that allows users of Decred blockchain to stake their coins and vote on issues. The users use the native DCR tokens to stake and make decisions on the expenditure of the $23 million USD worth of DCR tokens.
Proposals on the Decred platform usually falls into two categories: those that require voter support to implement a given policy change and those that require funding from the treasury.
The latest proposal by Decred (DCR) Co-founder, Jacob Yocom-Piatt, was aimed at Binance cryptocurrency and centralized exchanges as he focuses on introducing a Decentralized exchange (DEx). Jacob remains skeptical if the proposal to the Politeia community will be accepted after a vote is carried out. In an interview, he gave his explanations on the current dangers of centralized exchanges and how DEx can make a difference.
The proposal by Jacob will fall under the funding side of proposals as the project to build a DEx requires about $1 million USD.
The Decred decentralized exchange (DEx)?
Many cryptocurrency projects are facing a huge problem in gaining adoption as centralized exchanges pose huge barriers of entry to these projects. The high listing fees, third party rent-seeking and failure of centralized exchanges are some of the problems expected.
Binance exchange, one of the largest crypto exchanges by trading volume charges exorbitant fees to list coins. While the exact figure is not known, some projects paid upwards of $1 million USD to gain listing. Such problems have limited the success and adoption of cryptocurrency projects hence the move to a DEx.
Other problems such as high frequency bot trading also limits the overall profits individuals can make compared to these institutions with robust infrastructure. To solve this problem, the Decred DEx aims at implementing pseudo-randomly matched orders which will be shuffled on arrival evening out the play field.
The DEx further plans to introduce cryptocurrency atomic swaps, crypto-to-crypto trading and a transparent trading platform.