Introducing GEX’s Game-Changing Opportunity and Token Economics

Ever heard of a decentralized exchange that operates solely on the will of the people? Enter GEX, the world’s first truly decentralized exchange on GLITCH with a user-first philosophy.

Decentralization is at the heart of cryptocurrency’s birth. It’s an innovative model underpinned by open access, transparency, and collective control. In the ever-evolving and maturing world of cryptocurrency, a trend emerged over time — the industry has started to move towards centralization.

Why is this happening? Market demands for security, speed, and scalability have pushed protocols toward adopting centralized mechanisms. These often operate under a single entity’s control, contrasting with the original ethos of blockchain’s distributed nature.

GEX embodies a user-focused philosophy where power is genuinely returned to the people. Unlike other decentralized exchanges (DEX) that claim decentralization but maintain control within its founding team, GEX hands the reins over to its users. It runs on a governance model where every decision stems from a proposal put forward by the community itself, then further operated by its users.

GEX is taking steps back towards genuine decentralization. It isn’t just about changing the game — it’s about setting new rules altogether.

Welcome to the future of decentralized exchanges.

GEX Opportunity

GEX, known as the Glitch Decentralized Exchange, is a permissionless peer-to-peer engine powered by smart contracts that will, in time, feature built-in profit-sharing, inclusivity, and community-shareholder features. It brings unprecedented speed and low transaction costs, setting itself apart from other DEXes.

Creating a truly decentralized exchange, like the GEX, requires integrating several key components. To bring this vision into a reality, the following components will be included:

  • Hosting: Adopting a decentralizing hosting solution remove the single point of failure and ensures that the GEX remains censorship-resistant.
  • Runtime: An efficient and secure runtime environment allows GEX’s smart contracts to execute, allowing users to trade directly without needing an intermediary.
  • Application: A user-friendly and transparent application layer (UXUI) will enable users to navigate and conduct transactions efficiently.
  • Messaging: A robust messaging system that is real-time, encrypted, and decentralized will facilitate the secure exchange of information across the GEX.
  • Protocol Fees: Low-cost transaction, governance, LP, and withdrawal fees will be redistributed to the users and the community.
  • DAO governance: Adopting a purposeful DAO governance mechanism is critical to a truly decentralized exchange, allowing for community-based decision-making and governance. Every single token holder has a say in the decisions that affect the GEX, from operational changes to strategic planning, made via a voting system that aligns with the needs of its user base.

The end goal beyond the initial MVP version? The GEX is the native decentralized exchange on GLITCH that is seamlessly integrated within the ecosystem, actively contributing to the revenue-sharing model by returning revenue to the ecosystem and playing a vital role in allowing dApps to contribute their share in whichever token suits them best.

Initial Supported Assets

Upon the GEX launch, two initial trading pairs will be listed: nGLCH/g.ETH & nGLCH/g.USDT. These two initial pairs were chosen for their potential to provide functionality to GEX users, catering to DeFi enthusiasts and risk-averse traders right from its inception.

To further facilitate this launch, two new contracts will be added to the native mainnet bridge. Users will be able to move ETH and USDT both ways between the Ethereum network and the Glitch blockchain (g.ETH and g.USDT). This two-way bridge will promote more flexibility and ensure sufficient GEX liquidity.

Community proposals and subsequent voting will drive additional ERC-20-based token listings. For native GRC-20 tokens, the community plays an active role in kickstarting trading by providing the necessary liquidity for these new listings.

Operations: Council and Board Memberships

In June 2023, we released initial information on the election process and governance structure in our latest article, “Introducing GEX, the people’s truly decentralized exchange on GLITCH.” Learn more by scrolling down to the section “GEX Operations.”

Unlocking New Possibilities With The GEX’s Native Token

The GEX’s native token will play a critical role in the GEX and the overall GLITCH ecosystem. As a governance token, GEX gives holders the authority to contribute to critical decisions regarding the future of the GEX. Furthermore, the GEX token will follow a deflationary model designed to control inflation and potentially enhance value over time. The vision for the token is simple: to provide access to decision-making while reaping utility benefits.

We want to remind our community that you — the users — will make all decisions concerning the GEX and its token. Therefore, below are the proposed tokenomics of the GEX that will be polled to the community:

Proposed GEX Token Economics

  • Total Supply: 8,888,888 GEX
  • Circulating Supply: 4,444,444 GEX
  • Token Specifications: Utility, Governance
  • Token Model: Deflationary (Proposal includes a scheduled or transaction-based token burn based on fees generated beyond the revenue-sharing mechanics in which the community shall define its burn schedule.)

As part of the deflationary model, if a token burn is approved via consensus, it can provide benefits such as scarcity, fairer distribution, and improved governance as it would distribute influence across regular, long-term users over early investors.

Proposed GEX Token Allocation Split

  • Public Raise & Liquidity (50%): 4,444,444
  • Treasury: Development/Hosting (22.50%): 2,000,000
  • Treasury: Marketing (12.50%): 1,111,111
  • Treasury: Marketing Airdrop (5%): 444,445
  • Treasury: Marketing Liquidity Program (5%): 444,445
  • Founding Team (2%): 177,777
  • Misc. Contingencies (3%): 266,666

This proposal strikes a balance between incentivizing liquidity providers and ensuring the GEX’s long-term sustainability by funding the DAO treasury and aims to incentivize LPs and network validators while supporting the token’s value through burn and utility mechanisms.

Disclaimer: The token economics described above are proposed to ensure GEX’s self-sustained operations. As GEX tokens are unavailable as of this publication, GLCH tokens will be used for approval via Snapshot. Unapproved allocations will be revisited until a consensus is reached. Community members are welcome to propose their allocations, which will be considered based on voting activity and popularity. Please conduct your research when participating in these decisions.

Diving Into Economics of GEX-based Swaps

The following details are hard-coded into the GEX’s smart contracts and will allow the protocol to operate self-sufficiently.

  • All GEX-based swaps will include a 0.3% fee charged to the transaction sender (the input amount).
  • Based on the swap fee, 2/7 (28.5%) of the fees will be sent to the treasury, while 5/7 (71.5%) will be sent to LPs.

The distribution of fee allocations is the one aspect that cannot be put up for community voting, as these fees are hard-coded into smart contracts. However, the fees associated with GEX-based swaps can be adjusted if necessary, and their configuration can be put up for community polling in the future.

Forging the Future of DeFi Trading

The upcoming launch of the GEX will pave a monumental milestone for the GLITCH ecosystem and the overall DeFi landscape. The GEX’s innovative approach, including unique tokenomics, DAO governance, and a community-led development strategy, positions GEX at the forefront of the DeFi space.

Even prior to its launch, GEX is already distinguishing itself as a decentralized exchange where community input is its driving force. At Glitch, our commitment to community involvement is foundational to the GEX, creating the first truly decentralized trading experience that responds to the needs of its users.

We invite the community to actively participate in the decision-making and maximize the use of the GEX upon its launch. Users who engage with GEX will have the opportunity to earn rewards, including airdrops and bonuses tied to the GEX launch. We look forward to sharing more detailed information with you, so stay tuned!

“We’re returning to the roots that made DeFi what it is supposed to be. Decentralization in the truest sense. Power in the hands of the community, just as it should be. Join us on this journey!” — Sean Ryan, CEO of Glitch Finance

As we count down to the launch, we remain committed to creating an exchange that truly belongs to its community.

Onwards and upwards,

— Team Glitch

About Glitch

GLITCH is a blockchain-agnostic super protocol explicitly designed for trustless money markets and decentralized financial applications (dApps). GLITCH solves the expensive fee structure of other blockchain platforms while simultaneously empowering all ecosystem participants and guaranteeing low network fees through a unique revenue-sharing mechanism. Glitch plans to incorporate token wrapping bridges, where dApps can run more efficiently, all in service of Glitch’s ultimate goal: to become a cornerstone of blockchain infrastructure.

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Introducing GEX’s Game-Changing Opportunity and Token Economics was originally published in Glitch Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.