ExCraft Launches First DAO, User-Governed Cryptocurrency Exchange
ExCraft, a cloud-native cryptocurrency exchange based in Hong Kong that implements a DAO governance ran by the users and pools, was launched today.
Hong Kong, 10 August 2018 – ExCraft, a cloud-native cryptocurrency exchange based in Hong Kong that implements a DAO governance ran by the users and pools, was launched today. ExCraft stands out by being a community and pool focused exchange, rewarding traders through a combination of “Proof of Existence” (PoE) and “Proof of Stake” (PoS) mechanisms, allowing power-users to create pools, vote for new project listings, and even create dedicated pool exchanges based on its immutable and fair PoE and PoS meritocracy.
The first DAO-based exchange – “ExCraft, Craft Your Own Exchange!”
ExCraft introduces the first decentralized autonomous organization exchange managed based on a single or pooled user trade volume meritocratic Proof of Existence voting system. Verified KYC (Know Your Customer) users will be able to vote on listing new projects to be sponsored in the exchange. The ExCraft community values all users input as well as those who trade most frequently.
The governance of the DAO will combine ExCraft with a Congress and a Senate made of Pool Masters and Grand Pool Masters to which all votes will be submitted. All votes will be subjected to a Congress and a Senate smart contract voting based on both KYC users and the meritocratic system:
- The Representative Proof of Stake Congress will be a meritocracy based on the top 101 users holding EXT tokens as determined by a smart contract. Any current representative of the congress may bring an issue to vote. The vote result will be transparent and easily verifiable on the blockchain. When a bill passes the Congress, it is passed to the Senate for a second vote in a new smart contract.
- The Representative Pool Master Senate is made of Pool Masters of the top 101 pools containing the most PoE across their pool members. The system will empower the Senate with the ability to pass legislation through a democratic process. Conversely, users with only a single vote must convince the pools of senators with Proof of Existence to approve the legislation they have passed. Member of Congress are free to change pool and shift their PoE voting power to a new pool for the next round of voting should they disagree with the outcome of the vote.
- The top 30 Senators who have at least 1000 KYC users on average over the past two weeks will be automatically designated as a Grand Pool Master. They will have the additional decision-making rights to request ExCraft to list custom tokens to their pool members only without requiring a full DAO vote, and only needing to go through a centralized ExCraft approval process. If 80% of all Grand Pool Masters (24) list a custom token, the token will be automatically and permanently approved for use for all ExCraft exchange users without requiring a DAO vote.
An Innovative approach to rewarding users
ExCraft will create an initial decentralized service by rewarding users based on “Proof of Existence” (PoE). The ExCraft platform will introduce three separate ways to reward users for their activity, with its own ERC20 compatible EXT token. The reward system is designed to sustain the EXT token economy ensuring value redistribution and increase over time:
- Excraft will reward the community with a calculated number of EXT tokens daily which are distributed based on each user’s Proof of Existence volume. The exchange will also purchase EXT tokens with no less than 80% of the fees collected and permanently remove them from the overall supply.
- A Proof of Stake mechanism will enable users who hold EXT tokens in the exchange or any private Ethereum wallet address registered with the exchange to receive rewards on a daily basis based on the amount of EXT they hold.
- Pool Rewards will be distributed to users who chose to join “Exchange Pools’ and have their PoE counted towards the total pool PoE increasing their chance of receiving a larger portion of the daily token distribution. A pool will be considered eligible for pool rewards if it is among the top 101 pools as measured by the combined PoE of all their members and contains at least 100 KYC users. The Pool Master will elect to have the reward automatically redistributed to pool members, and may decide to retain a certain percentage of the reward.
This innovative trifecta of user activity reward possibilities puts ExCraft a step ahead of other exchange as it values all users based on a meritocracy system totally new to the industry.
Unparalleled reliability and security by design powered by cloud-native microservices
The ExCraft Exchange Platform is implemented in Google Compute Platform, custom built to support both security and performance. The cloud-native exchange platform is architected to be both modular and scalable by utilizing docker for encapsulating key components into a set of microservices managed by Kubernetes.
Unlike many traditional monolithic centralized exchanges, the ExCraft architecture promotes performance by allowing the exchange to quickly add additional resources and changes in functionality with minimal to no disruption to any existing trading activity. The exchange platform has been tested to support thousands of trading pairs with an overall capability to support tens of millions of transactions per second.
The ExCraft platform utilizes docker not just as a means to bring operational efficiencies but also to reduce security risks by compartmentalizing critical services through network isolation and resource management. Should a vulnerability be found in one service, ExCraft uses hardened docker containers with Kubernetes to enforce “deny by default” to reduce the possibility of an attacker using a compromised service from accessing another service.
ExCraft is registered in Hong Kong with the support of the Hong Kong Science Park, and invested in by Collinstar Captial, Eagle Fund, BXTING, RC4. The project is spearheaded by Roy Lam kt, CEO, and early bitcoin investor, investment fund manager and celebrity in high IQ and memory championships. The technical architecture of the exchange was developed under the leaderships of CTO Benjamin who brings over a decade of experience and multiple patents from working as Senior IT Architect and CTO at various blue chip tech companies.
Company name: ExCraft
Company site: www.excraft.com
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