Explained: Token Issuers, ViteX Operators & Token Right
Oleg last edited by Oleg Reward
As we’ve mentioned time and time again, ViteX firmly believes in the principles of openness and transparency. As such, ViteX allows anyone to issue their own token (in just one click!) on the Vite platform. Not only that, ViteX also allows anyone to operate their own min decentralized exchange, called Zones, on ViteX. Within their respective Zones, Operators can list trading pairs, customize transaction fees, and generate profits from users that choose to trade on their Zone.
Token Issuer (“Issuer”)
An Issuer is classified as anyone who issues a token on the Vite platform. All you need to do is go here, fill out your token parameters, burn 1,000 VITE and you’re good to go.
As a quick example, let’s say our CSO Chris wants to issue the ChrisToken (which we will conveniently rename to CT) on Vite. He hits a couple buttons and boom, the CT now exists in the blockchain-sphere on the Vite chain.
Chris thinks that CT is going to to be super popular, so he wants to make it available for others to trade on ViteX.
However, just because anyone can easily issue a token does not mean that they can immediately trade the token. This is where the idea of ViteX Operators come in.
ViteX Operator (“Operator”)
You can think of the Operator as the entity that manages token trading pairs (note: you can be both an Issuer and an Operator if you choose to). These “manage” functions are implemented on-chain and include the ability to list/suspend trading pairs and set transaction fees. For example, Operators have the option to set additional transaction fees of up to 0.2% on top of the Base Transaction Fee on ViteX of 0.2%.
As soon as an Operator becomes responsible for a token trading pair, they officially now have a Zone. Any additional trading pairs that the Operator adds are all considered to be a part of the Zone. The Zone can be thought as a business operation — as such, Operators are responsible for promoting and marketing their respective Zones to attract more users and promote their business.
However, before an Operator can do anything with your token, the Operator needs to obtain the rights to your token, which we will creatively name as Token Ownership Right.
Token Ownership Rights
You can think of the Token Ownership Right as a patent to your token — before anyone can do anything with your token (such as list it as a trading pair), you will need to sign over your IP rights.
Let’s say you sign over your IP rights and let someone else open up a BTC trading pair for your token. Doing this will create an independent set of rights, which we refer to as the Token Trading Right.
Token Trading Rights
Simply put, the Token Trading Right is the right to manage a specific trading pair. Going back to the previous patent analogy, the Token Trading Right is like creating a subset of your patent that allows another party to use your token in a specific instance (in this case, for listing a BTC trading pair).
Each time a new trading pair is listed, it comes with its own Token Trading Right.
- Note: both Token Ownership Rights & Token Trading Rights can be irreversibly transferred.
This is all best illustrated by continuing our example from earlier. As the story goes, Chris wants to make CT available for trading. By default, the Token Ownership Rights belong to Chris. He now faces a choice between:
Scenario 1: Becoming a ViteX Operator himself and listing a CT trading pair
Scenario 2: Passing his CT Ownership Right to someone else and letting them manage CT.
Chris doesn’t want to give up his Token Ownership Rights, so he chooses to become an Operator. Let’s say he wants to open a CT/BTC trading pair. Luckily for Chris, ViteX has an integrated BTC cross-chain gateway operated by Vite Labs, so he does not have to go finding a third-party gateway operator. Chris goes to the “Operator” page on his ViteX account (found in the upper right hand corner of the navigation bar):
From here, he can choose “Manage Trading Pairs”:
After clicking on the CT/BTC trading pair, he will need to pay the 10,000 Listing Fee in order to list CT/BTC. Now, Chris has two sets of rights: 1) CT Ownership Right, and 2) CT/BTC Trading Right. Additionally, Chris will become the proud owner of his own Zone!
Theoretically, Chris would have 10,000 VITE to pay the listing fee. Unfortunately in this screenshot example, he does not.
If at some point in the future, Chris for whatever reason decides that he no longer wants to operate a Zone with the CT/BTC, he can transfer his CT/BTC trading right to another party. Once he does that, Chris will no longer be able to operate a CT/BTC trading pair. However, since Chris still has the Token CT Ownership Right, he can open a separate CT to ETH/USDT/VITE trading pair.
Chris is too busy doing work for Vite Labs and doesn’t have the time to manage CT. Fortunately, his good friend Richard, the COO, does. So, Chris transfers his CT Ownership Right to Richard. Now, Richard can list any CT trading pair on ViteX (BTC/ETH/USDT/VITE). For every trading pair that Richard opens, the Token Trading Right belongs to him and he can transfer them to whoever he wishes. Furthermore, if at some point Richard decides he no longer wants to manage CT, he can transfer the CT Ownership Rights as well.
And…that’s a wrap! I hope this article cleared up some questions regarding the different roles & functionalities of token issuers, ViteX Operators and the different token rights. Disclaimer: these rules are by no means permanent or set in stone — ViteX will continue to evolve and we’ll do our best to communicate the developments as they come!
Sri Lankan: https://t.me/vite_sri_lankan