More information about OAX
About
The openANX project is different from pure decentralized exchange initiatives as it recognizes that non-trading ancillary services are required for attracting the critical mass of users required for a functional ecosystem network. Central to openANX is the integration of emerging decentralized exchange protocols to a mechanism that provides transparency as to the counterparty credit quality of service provider participants (i.e. Asset Gateways).
While price discovery and trading transaction execution can be achieved through smart contracts, the practical reality is not all trading exchange functionalities can be decentralized. These services are required in order for an exchange to achieve critical mass the next best solution is to provide the means for appropriate risk assessment of these Asset Gateways. By making available risk assessment indicators (including but not limited to the posting of collateral, membership levels, verified identification information, and other records onto the blockchain) and formalizing defined dispute resolution mechanisms (also inserted onto the blockchain), participants are provided with transparent access to important information needed to evaluate the credit quality of Asset Gateways. Importantly, unlike with the centralized model, the Asset Gateway never holds crypto-keys to both assets – for example with a fiat gateway, the gateway only holds fiat currency in any transaction scenario; the user retains crypto custody, significantly reducing user risk. Participants are therefore able to make optimal decisions with regards to not only trading prices but also the counterparty risk they are willing to assume for non-crypto pair trading. These features of openANX enable the execution of more than just crypto pair trading and will therefore attract trading participants to drive volume, price efficiency and liquidity, which in turn draws other market participants who provide additional useful functions to the network economy. These would include not only existing centralized exchanges who bring their existing transaction volume, but also other participants such as rating agencies who evaluate Asset Gateway creditworthiness and credit risk arbitrage traders who effectively provide market pricing.
Open source, decentralized, transparently governed exchanges will eventually dominate the crypto currency market. With the increasing maturity of the Ethereum Network, Raiden and governance frameworks such as boardroom.to, that vision is increasingly viable. openANX, aims to create a truly open source and decentralized platform that uses a hybrid model to integrate the key strengths of the existing CEM with key enhancements such as credit risk assessment, structured dispute resolution and a collateralized deposit system to empower users, providers and third parties to properly evaluate the uncertainty that has long been a part of the marketplace.
The OAX Token
The OAX token (OAX) is a native Ethereum divisible digital token with up to 18 decimal places. The total number of OAX tokens to be issued is 100,000,000. For details of the distribution of these tokens, see Section 4.3 - Token Allocation & Distribution.
OAX is a token that can be exchanged for memberships in the DAO and/or its association. Members will be entitled to certain privileges, including but not limited to voting privileges on major operational decisions relating to the openANX platform. Members are not entitled to any economic rights of the Foundation at any time and Memberships do not entitle the holder to any distribution of profits nor any claim on any assets. Memberships are not provided with any right of redemption although memberships are transferable. Any tokens exchanged for memberships shall be destroyed. In addition, to the extent that excess funds are generated by the openANX platform from transaction and other fees, a RNG algorithmic process will be initiated by the openANX platform to expend such excess funds to acquire OAX which may be trading on secondary markets. Such acquired OAX shall be destroyed. As there is no inflation of the number of OAX the cumulative effect of these two processes is that as activity on openANX increases, the supply of OAX will decrease.
While it is a core belief that the openANX platform be open to all, users will only be able to influence policy through voting privileges, which will be conveyed through Memberships and OAX tokens form the method whereby users gain access to Memberships. If users wish to gain access to voting privileges, or become a third-party service provider including but not limited to the following areas; KYC, Asset Gateway, or other service, some form of Membership will be required.
While price discovery and trading transaction execution can be achieved through smart contracts, the practical reality is not all trading exchange functionalities can be decentralized. These services are required in order for an exchange to achieve critical mass the next best solution is to provide the means for appropriate risk assessment of these Asset Gateways. By making available risk assessment indicators (including but not limited to the posting of collateral, membership levels, verified identification information, and other records onto the blockchain) and formalizing defined dispute resolution mechanisms (also inserted onto the blockchain), participants are provided with transparent access to important information needed to evaluate the credit quality of Asset Gateways. Importantly, unlike with the centralized model, the Asset Gateway never holds crypto-keys to both assets – for example with a fiat gateway, the gateway only holds fiat currency in any transaction scenario; the user retains crypto custody, significantly reducing user risk. Participants are therefore able to make optimal decisions with regards to not only trading prices but also the counterparty risk they are willing to assume for non-crypto pair trading. These features of openANX enable the execution of more than just crypto pair trading and will therefore attract trading participants to drive volume, price efficiency and liquidity, which in turn draws other market participants who provide additional useful functions to the network economy. These would include not only existing centralized exchanges who bring their existing transaction volume, but also other participants such as rating agencies who evaluate Asset Gateway creditworthiness and credit risk arbitrage traders who effectively provide market pricing.
Open source, decentralized, transparently governed exchanges will eventually dominate the crypto currency market. With the increasing maturity of the Ethereum Network, Raiden and governance frameworks such as boardroom.to, that vision is increasingly viable. openANX, aims to create a truly open source and decentralized platform that uses a hybrid model to integrate the key strengths of the existing CEM with key enhancements such as credit risk assessment, structured dispute resolution and a collateralized deposit system to empower users, providers and third parties to properly evaluate the uncertainty that has long been a part of the marketplace.
The OAX Token
The OAX token (OAX) is a native Ethereum divisible digital token with up to 18 decimal places. The total number of OAX tokens to be issued is 100,000,000. For details of the distribution of these tokens, see Section 4.3 - Token Allocation & Distribution.
OAX is a token that can be exchanged for memberships in the DAO and/or its association. Members will be entitled to certain privileges, including but not limited to voting privileges on major operational decisions relating to the openANX platform. Members are not entitled to any economic rights of the Foundation at any time and Memberships do not entitle the holder to any distribution of profits nor any claim on any assets. Memberships are not provided with any right of redemption although memberships are transferable. Any tokens exchanged for memberships shall be destroyed. In addition, to the extent that excess funds are generated by the openANX platform from transaction and other fees, a RNG algorithmic process will be initiated by the openANX platform to expend such excess funds to acquire OAX which may be trading on secondary markets. Such acquired OAX shall be destroyed. As there is no inflation of the number of OAX the cumulative effect of these two processes is that as activity on openANX increases, the supply of OAX will decrease.
While it is a core belief that the openANX platform be open to all, users will only be able to influence policy through voting privileges, which will be conveyed through Memberships and OAX tokens form the method whereby users gain access to Memberships. If users wish to gain access to voting privileges, or become a third-party service provider including but not limited to the following areas; KYC, Asset Gateway, or other service, some form of Membership will be required.
https://oax.org
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