OTC Desk for Trading FX and PUNDIX

Hi,

This is a suggestion in response to @zaccheah tweet

https://twitter.com/zibin/status/1393551487695941633

With the on-going regulatory work with the Monetary Authority of Singapore, would the PUNDIX team be able to apply to provisionally operate an OTC desk for trading FX and PUNDIX? PUNDIX team could sell their FX to potential FX whales to attract them to make huge buys and to stake.

With the high ETH tx fees, it is unlikely that smaller FX/PUNDIX holders will be the ones that bring us across the last 30% of FX stake required to launch FX main net.

Regards.

MakeTheSwitch

We’ve got something in mind that’s similar to this, the f(x) dex (decentralised exchange) but that plan is still in the works.

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This is not what I am referring to. An OTC desk is basically a CEX (Centralized Exchange). A huge FX/PUNDIX KYCed buyer approaches an OTC desk, agrees on a deal to trade FX/PUNDIX with the OTC desk, and a manual trade is conducted.

cc @zaccheah @DavidK

@MakeTheSwitch I dunno if this has any relevance.Zac tweet

There is. ETH fees are charged per transaction. It makes more financial sense to both purchase and stake a larger amount of FX/PUNDIX when one is evaluating whether to pay those high ETH fees for transactions required. At the moment, anyone who is looking to buy large amounts of FX/PUNDIX risk paying huge slippages as OTC desks are non existent for huge FX/PUNDIX purchases. Staking a larger amount of FX/PUNDIX can also better justify those ETH fees.

OTC Desks are common for higher liquidity coins and also for coins where coin founders are interested to sell their coins to larger purchasers.

It is only a suggestion. Hope PundiX team can work something out @zaccheah @DavidK

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We do not operate OTC desk as we don’t have intentions to sell large amounts of the company holdings nor founders’ token.

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Thanks for the clarification.

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Hi @zaccheah ,

In light of the current challenge the community is facing in getting across the 75M fx staking requirement to activate fx mainnet launch, I hope you will reconsider operating an OTC desk for trading FX and PUNDIX.

Whether we like it or not, fx whales are required to get us across the line for a variety of reasons including high ETH fees. If current fx whales cannot get us across, and I am referring to PUNDIX as well as Function X Foundation as current fx whales too, then we need new fx whales. There is not enough liquidity in the current exchanges to allow aspiring new fx whales to become whales. Even if there is, the high slippages will deter them.

An OTC desk for PUNDIX and FX does not necessarily require only PUNDIX or founders to sell their tokens. Other whales could trade large amounts there as well.

Regards.

MakeTheSwitch

cc @DavidK

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We need new whales. A perfect description of where we stand.

The fact that there are investors in this project that are effectively strangling our future progress is a signal that shouldn’t be taken lightly.

I don’t know if I have seen a project yet with such indifference from the biggest holders of the token.

Additionally FX was not a ICO token. The pundi team Knows who these whales are. KYC was required for swapping. I could not swap as a US citizen and it makes me wonder if perhaps it is language barrier preventing something from being done.

So far the staking messaging has only been done in English…

Hi @zaccheah ,

I highlighted the issue with the struggle the community faced when we were canvassing for 75Mfx staking requirement to activate fx mainnet launch. back in May/Jun 2021. Eventually, I believe company holdings from PUNDI X and founders’ token kind of brought us across the line. I understood the rationale of encouraging the community to stake before “Devine Intervention” from PUNDIX and FX the entities.

We now have 2 proposals for f(x)Core (1 from Pundi X the company, and 1 from the community) that the community is being urged to vote on to bring us across 40% quorum. Both are sitting on the low single digit percentage quorum at the time of my writing this message. Similar to the previous 75M fx staking requirement, there is probably near zero chance that the proposals can be voted in without votes from Pundi X the company and founders’ token. That effectively means an entity and a small group of people still has the veto power to approve f(x)Core proposals and will have such veto power for the foreseeable future until token ownership becomes more decentralized and more active governance participation becomes entrenched within the general token holder community.

I hope the idea of operating an OTC Desk for trading FX and PUNDIX can be revisited. Whether we like it or not, we need a transparent way to further decentralize the ownership of FX and PUNDIX tokens at some stage of the project’s development. Otherwise, we will just continue to see voting on proposals languish without any chance of hitting quorum until and unless PUNDIX the company and founders support them.

Regards.

MakeTheSwitch

cc. @DavidK

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The validators will also vote. It will get passed. We are still a early stage, decentralization will take time.

I have no doubt it will pass. That’s the “issue”, actually. Agree, decentralization will take time.