One of the recurring questions that came up during our live public launch event was: Is DGTX going to be listed on a major decentralized exchange? Here, we lay out the considerations and the benefits, and offer our community the chance to have a say.
Switching DGTX to ERC-20
The main consideration in getting DGTX listed on most decentralized exchanges (DEX) is a technical one. Currently, the DGTX token is issued on the ERC-223 token standard, which makes it incompatible with most DEXs. Therefore, as a prerequisite of most listings, we’d need to change the DGTX token to the ERC-20 standard.
From a technical perspective its actually pretty simple. We would re-issue every DGTX token as an ERC-20 token and deposit them into a smart contract on the Ethereum blockchain. You would then send in your old ERC-223 DGTX to that smart contract which will automatically burn them and send back the new ERC-20 DGTX to you in an instant, trustless transaction.
Once we’ve issued new DGTX tokens to the ERC-20 standard, we could begin the process of getting listed on all the major DEXs.
The Benefits of DEX Listings
There are plenty of good reasons why we should get DGTX listed on DEX’s. Decentralized finance (DeFi) is currently booming, with over $4.5 billion of value locked, according to DeFi Pulse. A significant proportion of this value comes from DEX’s such as Uniswap, Bancor, or Kyber Network.
The reason that DEX’s are so popular is that they offer several benefits over their centralized counterparts. Trades are managed using blockchain-based smart contracts, meaning that transactions are trustless. Furthermore, funds are held on a blockchain, meaning that DEX’s are non-custodial, and you can keep control of your own funds and private keys.
Because DEXs are decentralized, they aren’t under the control of any one jurisdiction and so don’t require users to undergo any KYC checks. This makes them inclusive and open to everyone.
Until the DeFi movement started to gain traction, DEX’s tended to suffer from a lack of liquidity compared to their centralized counterparts. As Adam has always pointed out, liquidity begets liquidity, meaning that liquid trading venues are more likely to attract traders who want to benefit from the liquidity, and in turn, contribute to the liquidity pool with their own trading activities.
Now that DeFi is starting to boom, and with the introduction of automated liquidity protocols such as Uniswap, liquidity is improving. This spells great news for listing DGTX on DEX’s, as it means that our token can benefit from these decentralized liquidity pools, and potentially gain visibility with new audiences.
Tell Us What You Think
Overall, Digitex is in favor of having DGTX listed on decentralized exchanges. We believe that it would demonstrate our support for a healthy Ethereum ecosystem and the burgeoning DeFi movement.
However, we are proud to be one of the only exchanges that aligns itself with the interests of our users. Therefore, we are seeking the input of our community before we take any action in this regard.
So, we are putting it to a poll. Should we switch the DGTX token from ERC-223 to ERC-20 so that we can get listed on more DEX’s? It’s up to you to decide. The polls are open on Telegram and Twitter for the next 24 hours. Head on over and let us know your views by voting now!