Hello, I kindly ask you to consider my suggestion for the Governance bounty.

1. In short:

Lack of initiative to vote for SBP’s creates a risk for the Vite Ecosystem - a simple change in voting mechanism would greatly migrate this risk.

2. Situation:

People that hold are able to vote for SBP’s who play an essential role in the Vite ecosystem. The Voters are rewarded with a share of the rewards the SBP’s gain. The weight of the vote is determined by the number of Vite the voter has in his/her wallet. The voting reward is somewhere between 0.001 and 0.009.

The alternative to voting is staking. With staking you gain VX for the number of Vite you have staked.

3. Problem

The return on voting is so much lower compared to the return on staking (10x - 50x) that it would make no sense for a rational investor to vote. In that he/she could simply stake and sell the vx he/she is rewarded for more Vite.

4. Risk

Due to the lack of votes it is relatively cheap to become a top 5 SBP without the need of any support from the community just by voting for yourself with an other account. That means that a well willing SBP gets out of the top 25 list as a result. Now considering a coordinated attack in which about +/- $500k is sufficient to create enough SBP’s to take over 90% of top 25 SBP’s...

5. Solution

The root cause of this problem is that the Vite holder has to choose between voting or staking. The solution I purpose is changing the voting power from (#vite in wallet) to (#vite in wallet + #vite staked). That way Vite holders can choose between voting reward while have liquid funds or having illiquid funds but earn higher rewards.

By doing this the number of votes cast will greatly increase (more then 100m vite are currently staked) which greatly increases the costs of such an attack and thereby reducing its attractiveness.

Please let me know what you think and feel free to ask any questions if any clarification is needed.

~ Michi

Dear all,

I hope to open a constructive discussion regarding the mining pairs which have bonus mining features.

I will present my view and purpose a suggestion how to make it more attractive - so we can all benefit more.

So what is the issue:

• The number of vx mined are pre-determined (bonus mining rewards does not create extra vx - rather it increases the share you get from the daily released vx. - so what does this mean?

• Based on my observations over the last few weeks where the price of 1 vx roughly equals market price this means that the promotion will result in less volume (because you need less volume mining x2 / x3
  Pairs to reach the market price)

• as a result this means that the less volume also generated less transaction costs and thus lower dividends.

• that means that I (as a top 5 vx holder) am one of the parties that pays for this promotion without actually benefiting from it.

• worst case scenario all btc transaction costs today would come from mining xmr: this would result:
  A) 1 / 3 of dividents are being generated
  B) mining xmr does not generate miners any additional profit (as the proportion of the mining rewards remain the same)
  (So who benefits?)

• best case scenario (individual miner and large holder)
  I am the only one mining on x3 pairs (while everyone else is mining regular pairs.)

• I mine until the vx price from mining is x3 market price.

• thing is that the miners on regular pairs are far less efficiënt and pay for this transfer of wealth

My suggestion:

• mining vx results based on actual transaction costs (independed of promotion pair bonusses)
• promotion rewards are in the CC of the bonus pair (so in this case monero)
• who finances this:
  Operators are able to set their own fees the pairs they support. So what if they top their base fee with (lets say )0,1% dedicated to promotions.
• why would an operator do this?
  : why not? Transaction cost finance this - and they generate more volume (and profits) during promotion.
• since vx mining is not affected there are (in my opinion) no downsides.

@VGATE @Vite @Shirley-wang (Bi23) @Lee
I am very curious how you view this matter.

Kind regards
Michi

Currently spending 10.000 vite to get the Vite VIP status mainly benefits you when you are either mining VX through market making or when you are day trading, which is nice but when you are mining through trading it is actually a disadvantage because less fees equals less VX mined.

Therefore I would suggest 3 changes to be implemented:

1. Change staking 10.000 vite to get VIP status to: burn 10.000 vite to get permanent VIP status.

2. Making sure that VIP status benefits all ->

• let people choose between:
  A) fee discount (for day traders or market makers)
  B) mining fee bonus (for miners through trading)

3. Because there are now (permanent) 2 VIP bonusses You could make the first VIP status 10.000 vite and the second 50.000 vite (Burned rather than staked)

Please let me know how you you guys see this suggestion

@vroder

Dividend pool: total TO BE distributed dividends that will be distributed over 100 day period.

So if today is t=0. On T+1 the distributed dividends are 1/100 of the dividend pool of t=0. The pool becomes value t=0 x 0,99 + transaction costs (btc, eth, usdt) of t+1

Distributed value:
The dividends that all distributed already. Bear in mind that a few weeks ago the dividends also contained vite dividends.

@vroder yes it can and might happen - just stake 10.000 Vite to become VIP and then another 1.000.000 VIte for SVIP so you have no transaction costs...

But that is not what is going on right now.. the big fish are paying transaction costs on it because they are using to generate VX (just check out at end of the day the transaction cost to generate 1 vx over the different pairs)

So yeah it (can) happen(s) but the mechanism to counter it are - in first scenario => no transaction costs, no mining reward | in last scenario => transaction costs are distributed to all vx stakers so that the more washing (with transaction costs) happens the more vx holders benefit.

@vroder no problem! Correct, no transaction costs means no mining.

Second question, I do not know the awnser on that - hope someone can awnser this (and I am very curious myself - because this crossed my mind as well)

@scooter_d

Why should that happen? The VX that are released daily will greatly increase over time, this means that the dividends that you get for holding vx will be reduced over time (because your % share of vx gets deluded)
Staking vite gets relatively stable return (even if all vite would be staked) meaning that over time vite gets more important. It will regulate itself..

Yesterday I reread the new BC whitepaper and had an interesting discussion with a few (larger) investors regarding the strategy CZ seems to pursue (successfully). Combining this with the EOY letter from CZ I think that we (Vitex) have a great opportunity now.
Personal opinion (no evidence nor signals). : I would not be supriced if vite labs is a good candidate for their M&A strategy. (But let’s go back to topic)

Since we won the Binance Community Vote a few things did (/not yet) happen which caught my mind:
A. Binance lists Vite on 3 pairs (BTC, ETH, BNB)
B. Binance delists the BNB pair
C. While the deposits and withdrawals of BNB is activated on Vitex, BNB is not tradeable on Vitex (yet?)
D. BNB is not tradeable on Binance US (some suggest this as a reason why the BNB prices dipped quite a bit)

What I love about ViteX is the ability to passively hedge your investment (through the dividends of both CC as stablecoins).

Apart from this hedge I personally diversify my portfolio by buying and holding BNB (among others) from a part of the dividends I receive here (meaning money leaves the exchange). Looking at the vite volume on Binance (with no mining initiative) we can assume that a substantial part of the vite holders also use Binance.

I think it would be smart move if ViteX opens BNB as the fifth market (next to BTC, ETH, VITE, USDT). I personally believe this could position ViteX above the Binance DEX as it provide the opportunity to earn 4 types of dividends (rather then 1) and this would make the VX token even more valuable.

For me (holding +/- 2 btc worth of VX) this would greatly reduce the need to take money out of ViteX in order to diversify my holdings and I would be very tempted to allocate more money to VX.

What do you guys think in terms of attractiveness, suitability and how realistic this is (Legally / technically)?

(I would be willing to co-invest if needed).

Yesterday I reread the new BC whitepaper and had an interesting discussion with a few (larger) investors regarding the strategy CZ seems to pursue (successfully). Combining this with the EOY letter from CZ I think that we (Vitex) have a great opportunity now.
Personal opinion (no evidence nor signals). : I would not be supriced if vite labs is a good candidate for their M&A strategy. (But let’s go back to topic)

Since we won the Binance Community Vote a few things did (/not yet) happen which caught my mind:
A. Binance lists Vite on 3 pairs (BTC, ETH, BNB)
B. Binance delists the BNB pair
C. While the deposits and withdrawals of BNB is activated on Vitex, BNB is not tradeable on Vitex (yet?)
D. BNB is not tradeable on Binance US (some suggest this as a reason why the BNB prices dipped quite a bit)

What I love about ViteX is the ability to passively hedge your investment (through the dividends of both CC as stablecoins).

Apart from this hedge I personally diversify my portfolio by buying and holding BNB (among others) from a part of the dividends I receive here (meaning money leaves the exchange). Looking at the vite volume on Binance (with no mining initiative) we can assume that a substantial part of the vite holders also use Binance.

I think it would be smart move if ViteX opens BNB as the fifth market (next to BTC, ETH, VITE, USDT). I personally believe this could position ViteX above the Binance DEX as it provide the opportunity to earn 4 types of dividends (rather then 1) and this would make the VX token even more valuable.

For me (holding +/- 2 btc worth of VX) this would greatly reduce the need to take money out of ViteX in order to diversify my holdings and I would be very tempted to allocate more money to VX.

What do you guys think in terms of attractiveness, suitability and how realistic this is (Legally / technically)?

(I would be willing to co-invest if needed).

@CryptoLily

Thank you, haha you are spot on @CryptoLily thank you for pointing me on this ( I actually seem to be the only one that misunderstood this as I solo traded >25 btc on the xmr/btc pair yesterday haha)

So therefore

1. The matter I pointed out is no longer an Issue (my apologies for my misinterpretation)

2. I would still be very interested how operators view the matter where they increase the trading fee with by small portion to a dedicated promotion fund that they can use to increase volume (without decreasing profits)

Dear all,

I hope to open a constructive discussion regarding the mining pairs which have bonus mining features.

I will present my view and purpose a suggestion how to make it more attractive - so we can all benefit more.

So what is the issue:

• The number of vx mined are pre-determined (bonus mining rewards does not create extra vx - rather it increases the share you get from the daily released vx. - so what does this mean?

• Based on my observations over the last few weeks where the price of 1 vx roughly equals market price this means that the promotion will result in less volume (because you need less volume mining x2 / x3
  Pairs to reach the market price)

• as a result this means that the less volume also generated less transaction costs and thus lower dividends.

• that means that I (as a top 5 vx holder) am one of the parties that pays for this promotion without actually benefiting from it.

• worst case scenario all btc transaction costs today would come from mining xmr: this would result:
  A) 1 / 3 of dividents are being generated
  B) mining xmr does not generate miners any additional profit (as the proportion of the mining rewards remain the same)
  (So who benefits?)

• best case scenario (individual miner and large holder)
  I am the only one mining on x3 pairs (while everyone else is mining regular pairs.)

• I mine until the vx price from mining is x3 market price.

• thing is that the miners on regular pairs are far less efficiënt and pay for this transfer of wealth

My suggestion:

• mining vx results based on actual transaction costs (independed of promotion pair bonusses)
• promotion rewards are in the CC of the bonus pair (so in this case monero)
• who finances this:
  Operators are able to set their own fees the pairs they support. So what if they top their base fee with (lets say )0,1% dedicated to promotions.
• why would an operator do this?
  : why not? Transaction cost finance this - and they generate more volume (and profits) during promotion.
• since vx mining is not affected there are (in my opinion) no downsides.

@VGATE @Vite @Shirley-wang (Bi23) @Lee
I am very curious how you view this matter.

Kind regards
Michi

@Lee said in The Revolution of DEX — ViteX:

Trading to Earn VX
Trade in BTC, ETH, VITE and USDT markets and receive VX rewards.

@Lee ; please note that this only works for the “mining enabled pairs” and not all trading pairs

@Lee ; same goes for market making

Currently spending 10.000 vite to get the Vite VIP status mainly benefits you when you are either mining VX through market making or when you are day trading, which is nice but when you are mining through trading it is actually a disadvantage because less fees equals less VX mined.

Therefore I would suggest 3 changes to be implemented:

1. Change staking 10.000 vite to get VIP status to: burn 10.000 vite to get permanent VIP status.

2. Making sure that VIP status benefits all ->

• let people choose between:
  A) fee discount (for day traders or market makers)
  B) mining fee bonus (for miners through trading)

3. Because there are now (permanent) 2 VIP bonusses You could make the first VIP status 10.000 vite and the second 50.000 vite (Burned rather than staked)

Please let me know how you you guys see this suggestion

@CryptoLily

Sure! I currently use the assumption that the newly distributed VX are partly used to swap for Vite / USD / BTC / ETH so that people have a countervalue for mining.

Since the new VX are distributed In the early morning (in my timezone) I expect downward pressure on the prices in the morning.

Since the number of non staked VX in circulation remains roughly the same , I expect the new VX be absorbed during the day (removing the downward pressure that was generated due to new VX hitting the market.

So I incorporate this assumption in my strategy:

• start of the day (with downward pressure on VX) —> buy VX with btc/vite/eth/usd

• during day:
  —> mine by trading (on the x3 pairs)

• end of day (without downward pressure on VX price):
  —> sell VX for Vite/ BTC/ETH /USD

Hope you also find this useful

@CryptoLily
Thank you for your reaction!

I decided to give it a try by creating a new account strictly for mining (while leaving my main for dividends).

I used 0.09 BTC on that new account for mining. Now 2 days further and > 850 vx mined at hardly any efforts. So far (2 days) profit ~ 0.03 BTC. So thank you for your advise!

@felicity

It means that the price of VX due to mining is lower than the market price (you can still sell the vx mined in the market at a price above your transaction cost price

Well first off congrats on your successful strategy!

Could you shed some light on this:

• i see in the screenshot regarding market making that you mined allot more VX than the number that you have staked. Is this correct?
• Does this mean that you use part of the mined VX for trading / marketmaking rather than staking?
• if so - what ratio would you advice? I currently have all VX staked but hardly generate anything from mining, so any advice will be appreciated!

Cheers!

@Oleg hey Oleg, is there any update on the consideration?
Kind regards!