I’ve been thinking of ways to incentivize liquidity providers for wSFX and have come up with the following.
Create a TWM governance token
Use it to reward LP’s and GUI wallet users. If you purchase or sell an item through TWM gui, you get some TWM governance tokens. If you provide liquidity to pools, you get TWM governance tokens through LP staking. If you rate people, you get TWM governance tokens. This will align the incentives to buy/sell, rate and provide liquidity for the whole protocol. Which is what we want. It also serves as a cash back mechanism for buyers.
TWM governance usage
TWM token’s purpose will be to govern TWM, not the Safex blockchain. It can help get rid of bad actors or onboard good ones. Initially Dan will do all of it but as it scales there will need to be a mechanism to do this in mass scale. Through a DOA you will be able to create proposals and vote on them to drive the development of the TWM.
So at the substrate we will have Safex Cash and Safex Token. Then one level above, we will have TWM token which is a separate entity than the protocol.
I read Satoshi was planning a rating system in his half finished marketplace. He was planning on rating based on mining behavior. The longer you mine, the higher your rating. Taking this in, we can use TWM to help with ratings a bit. Staking TWM token can give you a small rating increase over time. The longer you are staking, in a way, shows the time you have participated in the network, so you will less likely be a bad actor. This would just be a small factor of the overall rating score.
Lastly, I would encourage the Safex team to look into wrapping Safex into secret network as well. The developers values align with Dan’s extremely well. Currently a group of devs are working on a secret Monero bridge Secret Monero Bridge | Devpost since Safex cash is a Monero fork, then the code will be very similar and can be a gateway for safex to the secret network. The cool thing about this is, safex will be private the whole way in!
Owning a part of something is a powerful emotion that creates all sorts of network effects.