The FairDapp team is going to launch an exchange really soon (ETA Oct 15th). This post will outline on what an exchange is, why we are doing this, how we are going to do this and our grand master plan.
What is an Exchange?
Many of you are probably familiar with the contract Proof of Weak Hands 3D (P3D), it was a concept originally designed by Dr. Jochen Hoenicke and executed on the Ethereum Mainnet by Team JUST. Team JUST originally intended for the P3D to work as an honest pyramid scheme, it wasn’t until the release of Fear of Missing Out 3D (FOMO3D), people realized that the much more can be applied and linked to the P3D mechanism than just a simple honest pyramid. The P3D contract became an automated game earnings distribution platform. Weeks later, Zethr developer then expanded the P3D concept (they were developing the Zethr Platform for a while) and utilized the ERC20 tokens as gaming tokens and profit distribution token with backend dividend tokens.
In my opinion, a well designed P3D styled contract is much fairer than Bancor styled exchange or ICO tokens where these tokens are not backed by anything substantial. P3D styled contracts also have built in exchange functionality where users can interact with the Ethereum directly to buy and sell the tokens at predetermined prices and costs without the need of a centralize Crypto exchange. Most importantly, platform dividend distribution is fully automated on chain with absolute fairness and transparency.
Why we are Launching a New Exchange?
I was a large P3D token holder and still is the largest ZTH token holder. Whilst playing with these tokens, I realized that the P3D and Zethr token models came with fundamental flaws that I really did not like, and in my opinion, these flaws will ultimately hinder their platform growth.
P3D tokens had two fundamental problems:
- The inability to freely transfer the tokens.
- Too aggressive scaling.
Understandably, these two problems were not a problem and are good features in the scope of an honest pyramid game, but it works poorly to satisfy the needs of a gaming platform.
Zethr on the other hand in my opinion also suffered three fundamental problems even though they removed the transfer fee restriction:
- The ultra low scaling hurts lower div % token holders.
- The divided % of backend dividend tokens affects the size of bank rolls and makes deployment and management of the games difficult. It is extremely difficult or unworthy to deploying strategy based games using ZTH tokens due to divided % of backend dividend tokens. Meaning that ZTH token can only be used in casino games with a semi centralized bankroll.
- The high exit fee on some of the ZTH tokens also kills the liquidity.
The above inefficiencies meant that 3rd party developers like me cannot build DAPPs using ZTH tokens. Since I already hold a big chunk of ZTH, I wouldn’t want to build another exchange if I could make it work with ZTH easily.
Fair Exchange – Proof of Fairness
A modified P3D contract will be used to for the Fair Exchange – Proof of Fairness. P3D contract is proven to be the safest exchange contract with over 30k ETH within the contract and most of the functions are already built in to satisfy our needs. Potential changes (contract is not written yet) to P3D contract:
- Lower linear scaling, 10-50% of original P3D, exact number is not decided yet.
- A gas limit to prevent gas war
- Manual activation or timer activation – not decided yet.
- Improved/modified anti whale to suit our needs.
- Removal of transfer fee
- Keep the original 10% in and out fee, or modify it slightly to our needs.
- 100-200 ETH private offering (instead of ICO) that will go to the community and FairDapp team for development and game seeding.
DAPP gaming has always been a zero sum game until it becomes a bigger component in our economy. So the question is how to become profitable in DAPP gaming when it is actually zero sum? The answer is simple, we will simply take the ETH from the speculators and weak hands to reward the long term holders and supporters. As part of FairDapp ecosystem, we will always create opportunities for long term holders to profit and people that come and leave can spin their chance on the wheel.
Quota System to Allocate the Private Offering
This is our first attempt to sincerely reward the two month old community. The community will share 60% of the private offering according to the quota system. The remaining 40% private offering will be used for development and pre-seeding games. The quota system will decide how much private offering each individual of the community will get, each individual will only be eligible for one tier in each category and the total private offering quota for the individual is the addition of the category quotas.
To be eligible for the private offering, these conditions must be met:
- In the discord channel/wechat group before this announcement took place.
- A private offering quota of greater than zero according to the quota system.
- private offering quotas are not transferable
The category tiers and quota:
Channel Rank (Rank as of this moment of announcement)
- Ethereum – 0.5 ETH
- Ethereum on Steroids – 0.4 ETH
- Light Coin – 0.3 ETH
- Digital Cash (Dash) – 0.2 ETH
- Monero – 0.1 ETH
Amount Spent on Infinity and Bank (as of this moment of announcement, and need to prove addresses if multiple addresses are involved)
- >50 ETH – 1 ETH
- >25 ETH – 0.8 ETH
- >10 ETH – 0.6 ETH
- >5 ETH – 0.4 ETH
- >1 ETH – 0.2 ETH
Card holder for Fair Bank
- 1 ETH for each card held when previous compensation announcement was made
Special Advice and Promotion (Paid service and service that got paid don’t count)
- Will be decided on case by cases
I don’t know how much profit you will make with this private offering, but I do know that is it pretty difficult to lose ETH unless you are deliberately trying to lose ETH.
Execution of the Private Offering
I will purchase the entire private offering from the contract and hand the tokens to each individual before the exchange starts trading.
You will need to DM me your quota score and provide me evidence of participation in Infinity and Fair Bank. I will give you an address to send Ethereum (just a normal wallet address) to. Then you will receive the tokens when the exchange launches but before begins trading.
Grand Master Plan
Estimated Time Line of Inhouse Development
- Oct 15th 2018 – Exchange Launch
- Oct 25th 2018 – Fair Fomo Launch
- Late Nov 2018 – Off Chain RNG games
I believe that off chain is absolutely needed for high frequency RNG games to conserve gas. We are currently looking at LOOMX to be our off chain solution due to it’s prove of concept in wheel game ETH.TOWN.
It is my vision to have an independent trustless bankroll on each individual casino games. I don’t have a clue yet on how to implement these in a scalable way, ie. all investors can enter and exit at any time and no restrictions on investment size, possibility on implementation of this will be explored in the coming weeks. There are however a plan B bankroll structure that will always work but with a decreased flexibility and freedom. Individual bankrolls will also sink the exchange tokens by taking out the liquidity, making exchange tokens more valuable than usual.
Bringing New Blood to DAPPs
The DAPP community is actually very small with only about 20k players in the most popular DAPP game ever created. I have plan on bringing in new blood from the trading community for FairDapps, this will be released at the same time for off chain RNG games. Off Chain RNG games will more or less share the same base code which can be reused to make the deployment of games extremely fast. More details on this later.
It came to my attention recently that these games were made on top of P3D. It also came to my attention that some of the P3D tokens are stuck forever in these contracts, that is something I do not like about. A remake of these cool concepts will also be done in the near future with a fix on the token stuck problem, right now I kinda have an idea on how to fix this flaw with sufficient pre-seeding.
A concept brought up by edgeless.io (I don’t know whether they are the first) was that the house can still be profitable with zero house edge. With off chain solution, it doesn’t cost much to test out this concept and see whether this really works.
Openness and Looking for Developers to Build on Fair Ecosystem
After the launch of the Fair Exchange, we welcome all community developers to build their games on top of our fair exchange system. Community developers can benefit from:
- Keep all or most of the fees on their games
- A base code available to combine fair tokens with their games, and an off chain solution already setup for plug and play
- Listed on the front page of fairdapp.com and treated like any other games made by ourselves (subject to quality control)
- Advice and support on developments
We are also looking at EOS and Tron specifically for other gaming platform opportunities. Gotta keep up with new technology.