DGTX Staking

First Deposit Made Into DGTX Staking Rewards Wallet

Digitex Futures
• Digitex Futures
September 8, 2020

Following on from yesterday’s huge announcement regarding the new Digitex City white paper, we have some more news regarding the hotly anticipated DGTX Staking program. Staking is a critical component in the overall drive to get DGTX to $1 and beyond. Therefore, we’re pleased to share some further details about what you can expect.

The first and perhaps most important piece of information to share today is that we have opened a wallet for the DGTX Staking Rewards fund and made the first deposit of $100,000 today.

As we’d previously explained in our initial announcement about the DGTX Staking Program, staking rewards will initially be funded using the system gains made from liquidations on the DFE. Currently, the exchange is making gains worth around $100,000 each month. Therefore, the first deposit is for $100,000, which we have deposited using the stablecoin USDC, viewable on the Ethereum blockchain.

We will continue to deposit the system gains each month until December when we plan to open the DGTX Staking Program and start allocating the rewards. By this time, we estimate that there will be anywhere between $300,000 and $500,000 USDC in the wallet. This entire fund will be distributed to stakers in the first month that the DGTX Staking Program commences.

Ultimately, the DGTX Staking Program will pay out rewards denominated in our stablecoin currently in development, DUSD. However, the anticipated launch for DUSD will be in Q1 2021.

Therefore, until we have launched DUSD, we’ll pay out the staking rewards in USDC. This provides a stable medium of return for stakers, but most importantly, it means we’re not distributing more DGTX into circulation. Doing so would dilute the intended effect of the Staking Program, which is to restrict supply of DGTX. And besides, we’d rather keep hold of the DGTX.

The Imperative to Kick Off Staking

Getting the Staking Program up and running is technically less complicated than the other elements of the Digitex City plan, and so we’re keen to launch it as soon as possible for several reasons.

Firstly, we know there is a significant proportion of DGTX HODLers who are speculative investors with no interest in trading. The introduction of DGTX Staking is designed to appeal to this core demographic who can influence the price. It offers them an additional means of making returns from their investment beyond pure price increases.

Secondly, the broader rollout of Digitex City will only kick off in earnest next year, once we’ve delivered on our 2020 roadmap. We know our supporters had a long wait for the launch of the DFE, and we want to build confidence among the entire community that Digitex will continue to deliver at pace. Therefore, the establishment of a staking rewards wallet that’s visibly accruing funds every month is one step we can take now to start to bring our ambitious plans to life.

Finally, staking DGTX will perform a critical role in constricting the circulating supply. This will serve to push the price as we continue to onboard new traders who’ll continue to create demand. Furthermore, the rewards on offer from staking DGTX will also drive further demand from non-traders wanting to get returns.

What Kind of Rewards Can Stakers Expect?

So, what kind of returns are we projecting? Let’s assume that 300 million DGTX are staked in the first month.  Based on today’s token price of $0.035, that would be an approximate value of $10.5 million. Assuming a staking reward fund of $300,000-$500,000 USDC, this would equate to rewards worth between around three and five percent in the first month alone.

This is a very high rate of return, so its likely that market forces will bring these returns down by driving up the price of DGTX as more people buy the token to get their share of the rewards. Even if the price of DGTX is driven up to $0.10, the return in December could still be around 1.5% in a single month which is 18% per year, meaning that even higher prices for DGTX are justifiable.

All of these assumptions are based on current prices. There’s every likelihood that the promise of future staking rewards will also create buy-side pressure in the time between now and the first payout in December.

Remember – this is just the beginning. Once we launch Digitex City, advertising revenues from the social platform and revenues from the Playhouse will result in a far bigger reward pool. Combined with additional users, system gains from liquidations will likely increase too, so we’re anticipating that the program will accrue around $9 million in rewards for stakers by the end of 2021, around $750,000 per month, which is per the projections in the white paper.

We know these numbers may look ambitious. That’s the precise reason why we’ve already taken the first step of starting to fund the DGTX Staking Program now. It serves as a visible financial commitment to the rewards we’ll soon distribute among our loyal HODLers.

2020 Roadmap Remains a Critical  Priority

Finally, in response to one of the immediate questions circulating among the community, we want to reiterate our commitment to our current 2020 roadmap for the expansion of the exchange. Next to come are XRP and gold futures markets. Spot markets are still on track for Q4, along with a significant UI update, introducing multiple ladders on the same page.

So, rest assured that even before we pay out the first staking rewards in December and start to roll out Digitex City in Q1 next year, there’s still plenty left to look forward to for Digitex in 2020.

September 8, 2020
Digitex Futures

First Deposit Made Into DGTX Staking Rewards Wallet

Digitex Futures
DGTX Staking

Following on from yesterday’s huge announcement regarding the new Digitex City white paper, we have some more news regarding the hotly anticipated DGTX Staking program. Staking is a critical component in the overall drive to get DGTX to $1 and beyond. Therefore, we’re pleased to share some further details about what you can expect.

The first and perhaps most important piece of information to share today is that we have opened a wallet for the DGTX Staking Rewards fund and made the first deposit of $100,000 today.

As we’d previously explained in our initial announcement about the DGTX Staking Program, staking rewards will initially be funded using the system gains made from liquidations on the DFE. Currently, the exchange is making gains worth around $100,000 each month. Therefore, the first deposit is for $100,000, which we have deposited using the stablecoin USDC, viewable on the Ethereum blockchain.

We will continue to deposit the system gains each month until December when we plan to open the DGTX Staking Program and start allocating the rewards. By this time, we estimate that there will be anywhere between $300,000 and $500,000 USDC in the wallet. This entire fund will be distributed to stakers in the first month that the DGTX Staking Program commences.

Ultimately, the DGTX Staking Program will pay out rewards denominated in our stablecoin currently in development, DUSD. However, the anticipated launch for DUSD will be in Q1 2021.

Therefore, until we have launched DUSD, we’ll pay out the staking rewards in USDC. This provides a stable medium of return for stakers, but most importantly, it means we’re not distributing more DGTX into circulation. Doing so would dilute the intended effect of the Staking Program, which is to restrict supply of DGTX. And besides, we’d rather keep hold of the DGTX.

The Imperative to Kick Off Staking

Getting the Staking Program up and running is technically less complicated than the other elements of the Digitex City plan, and so we’re keen to launch it as soon as possible for several reasons.

Firstly, we know there is a significant proportion of DGTX HODLers who are speculative investors with no interest in trading. The introduction of DGTX Staking is designed to appeal to this core demographic who can influence the price. It offers them an additional means of making returns from their investment beyond pure price increases.

Secondly, the broader rollout of Digitex City will only kick off in earnest next year, once we’ve delivered on our 2020 roadmap. We know our supporters had a long wait for the launch of the DFE, and we want to build confidence among the entire community that Digitex will continue to deliver at pace. Therefore, the establishment of a staking rewards wallet that’s visibly accruing funds every month is one step we can take now to start to bring our ambitious plans to life.

Finally, staking DGTX will perform a critical role in constricting the circulating supply. This will serve to push the price as we continue to onboard new traders who’ll continue to create demand. Furthermore, the rewards on offer from staking DGTX will also drive further demand from non-traders wanting to get returns.

What Kind of Rewards Can Stakers Expect?

So, what kind of returns are we projecting? Let’s assume that 300 million DGTX are staked in the first month.  Based on today’s token price of $0.035, that would be an approximate value of $10.5 million. Assuming a staking reward fund of $300,000-$500,000 USDC, this would equate to rewards worth between around three and five percent in the first month alone.

This is a very high rate of return, so its likely that market forces will bring these returns down by driving up the price of DGTX as more people buy the token to get their share of the rewards. Even if the price of DGTX is driven up to $0.10, the return in December could still be around 1.5% in a single month which is 18% per year, meaning that even higher prices for DGTX are justifiable.

All of these assumptions are based on current prices. There’s every likelihood that the promise of future staking rewards will also create buy-side pressure in the time between now and the first payout in December.

Remember – this is just the beginning. Once we launch Digitex City, advertising revenues from the social platform and revenues from the Playhouse will result in a far bigger reward pool. Combined with additional users, system gains from liquidations will likely increase too, so we’re anticipating that the program will accrue around $9 million in rewards for stakers by the end of 2021, around $750,000 per month, which is per the projections in the white paper.

We know these numbers may look ambitious. That’s the precise reason why we’ve already taken the first step of starting to fund the DGTX Staking Program now. It serves as a visible financial commitment to the rewards we’ll soon distribute among our loyal HODLers.

2020 Roadmap Remains a Critical  Priority

Finally, in response to one of the immediate questions circulating among the community, we want to reiterate our commitment to our current 2020 roadmap for the expansion of the exchange. Next to come are XRP and gold futures markets. Spot markets are still on track for Q4, along with a significant UI update, introducing multiple ladders on the same page.

So, rest assured that even before we pay out the first staking rewards in December and start to roll out Digitex City in Q1 next year, there’s still plenty left to look forward to for Digitex in 2020.

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