If you are among the decentralized finance die-hards who have been hit hard by the Ethereum ecosystem’s congestion, you are just about to find a reason to smile. Decentralized finance and decentralized exchanges, commonly known as DEXes, launched in 2020 and are taking the crypto space by storm.
There are many DeFi projects in the crypto space already, but if you are specifically a fan of the Ethereum ecosystem-based platform SwapDEX, the promised future is here with us. The platform is making a significant step in the wake of the increased traffic in most DeFi projects, resulting in inefficient and uneconomical financial products and service delivery, specifically on Ethereum’s blockchain.
A Little About SwapDEX
SwapDEX is a decentralized exchange and a DeFi project launched on Ethereum’s ERC-20 program. In its whitepaper, the platform envisioned providing decentralized finance products under one platform based on Ethereum blockchain. However, SwapDEX is moving to its blockchain, the Smart DEX Chain, that would be fully compatible with other blockchains.
The move would initiate a more considerable user base and aid in scalability, one of the most significant issues facing the Ethereum ecosystem. SwapDEX’s overall vision is to provide an ecosystem that is easy to use, fast, affordable, and that meets individual needs in a responsible, timely, and sustainable manner.
The Smart DEX Chain
Smart DEX Chain is SwapDEX’s new and innovative blockchain. Like Ethereum blockchain, Smart DEX Chain will utilize the proof of stake consensus algorithm. The unveiling of SwapDEX’s blockchain comes with a range of changes on the platform, as it looks to introduce the SDX coin.
The SDX coin will be Smart DEX Chain’s native coin and form the base of the nodes required to run a node on the Smart DEX Chain. The platform, however, commits to ensuring that the base number of the coins needed to run a node is set at a level not out of reach for most people.
The exact figure is set at 10,000 SDX coins, although the platform is open for any holder with more coins and wants to earn more from mining rewards to run more than one node. 51% of the mining returns will get distributed among the active nodes and 9% to the stakers on a pro-rata basis.
SwapDEX Smart Chain Community Focus
The SwapDEX team has a unique commitment to creating a community-oriented environment where supporters get supported rather than an environment where only the rich get richer. On that line, the project set a sweet spot of the amount of SDX coin required to run a node, and community-run masternodes will support the SwapDEX Smart Chain.
Further, SwapDEX seeks to change the distribution of the SDX coin from a state where the SDX is heavily on SwapDEX wallets rather than being with the community. In that sense, SwapDEX is allocating 35% of its starting SDX coin supply to a community treasury.
The initial coin supply will be 200,000,000 SDX coins, where 70,000,000 SDX coins will go to the community treasury. 90,000,000 SDX coins, the most significant proportion, will go to existing holders as a replacement for the existing SDX. The SwapDEX team will use the remaining ratio to continue supporting the development of the platform.
The community treasury fund will entirely be under the community’s control and cater to initiatives meant to strengthen the SwapDEX platform. The community can make proposals and the amount of SDX coin they will require, and the nodes will vote on the proposal.
Each node has one vote, and if the majority votes in favor of the proposal, the community fund gets unlocked, and the amount of SDX coins stated for that project gets released.
SwapDEX also plans to alter the splitting of the mining returns, with a significant portion allocated to the community treasury. The community treasury will receive 40% of the total mining returns. The allocation will still benefit the SwapDEX platform and SDX coin holders on voted-upon initiatives.
SwapDEX is inarguably the first of the kind to have a significant focus on its community of users. It will be the go-to decentralized finance and DEX platform with an almost zero transaction fee. SDX coin users can also use gas to reserve their positions on the next block if many transactions are going through.
SwapDEX will be the place for DeFi projects, meaning the price of its native coin will keep increasing. Projects launching on the SwapDEX Smart Chain will pair with SDX coin.
The listings will help increase the buying pressure on SDX exponentially. SwapDEX enthusiasts only have to wait for a little longer for the complete transition and welcome a revolutionized experience in decentralized finance.