There’s a new grant fund for ecosystem development, please check it out!

https://www.ergoforum.org/t/good-whales-grant-fund/2779

Gazza_Erg (ErgoDex Community Manager)

Sorry for the confusion of the tweet. It’s understood that it wasn’t translated as intended. Hopefully, this article can help clear up any concerns of people and I have read every comment up to now and all feedback is welcome.

https://curiaregiscrypto.medium.com/understanding-ergo-a-community-driven-ecosystem-6b2037d3ee33

Feel free to Join the ErgoDex Telegram Channel if you have questions.
https://t.me/ergodex_community

The news of the day was a poorly worded tweet. I was asleep when that went out. Some days you get out of bed blind to what the day has in store for you. I guess we did a little bit of cleanup.

All in all, it’s a lesson, that is what mistakes are in the end. You learn and you grow.

When you make a mistake, own it, access the situation, accept feedback, and move forward a little bit wiser.

I think that is happening with the ErgoDex team, so let’s move forward.

The big question users have about ErgoDex is, When will it get a token?

I understand the question. Governance tokens are popular.

(The following is my opinion)

Many Dexes have large treasuries and some users see governance tokens as an opportunity to vote in favor of redistributing fees as a potential passive form of income. Some governance tokens are like a club membership giving traders discount rates. This seems to be the primary driver of speculation. It has led to liquidity farming, liquidity mining, and various other mechanisms of trying to generate yield.

Do governance tokens that distribute accrued fees to the platform’s governance token holders look like security? I guess the correct answer is, who’s eyes are looking? That is a hard question to answer at this point.

Governance is a dually important aspect in extended UTXO, as a decentralized exchange will be running code both on and off the base chain. Absent some form of distribution of control centralizes power in a way that is suboptimal. ErgoDex is being built by a team that is committed to continually pushing updates and improvements.

One of the largest upsides in Proof of Work is that miners have always had the ability to vote via forks. It is a pretty straightforward process, you vote with your hardware You vote with the version of the reference client you mine.

Let us assume that tomorrow the powers that be decide that governance tokens are in fact, a security, and therefore are under the regulatory oversight and control of governments. This is not beyond the imagination of most who are paying attention.

Can governance be done without the need for a token? I guess one potential solution for Ergodex would be to use their off-chain bots as a solution. Just as miners provide network infrastructure to blockchains, off-chain bots provide critical infrastructure to the Dex.

The distribution of miners creates the security consensus in Proof of Work, the distribution of off-chain bots play a role in preventing REORGs and other potential attacks. In a worst-case scenario, this would give users the ability to support different versions/forks of ErgoDex.

If a governance token is launched what features or perks would that involve? How would the tokens be distributed in a way that helps discourage a plutocratic distribution?

There is a lot to consider with this topic. There are a lot of questions and known unknowns that the ErgoDex team has been taking into consideration.

If you join the ErgoDex Discord you will find the following message.

“Currently, there is no need for an ErgoDEX token. One may be added later as required to change an off-chain pool executor and will be distributed with a scheme that minimalizes plutocracy.

ErgoDex will pay fee’s natively in the blockchain being used (ADA|ERG).”

The best way to interpret that at this point is as follows. The first priority is software. At this stage of development, governance is not needed.

As the ErgoDex implements a stable version and begins its process of evolution there will come a point where these questions will get answered. The important thing, for now, seems to be reaching the point of having something implemented that is actually useful to govern.

Please be patient and as the project progresses I am sure you will hear more updates regarding the path this dApp chooses and the reasoning behind those strategic choices.

Ilya did drop an update this week. In my opinion, this is much more interesting than a badly worded tweet…

He has been working on a transaction assembler for the Cardano side of ErgoDex. This will allow for ErgoDex to be functional absent the Plutus Application Backend. I am sure at some point the PAB will launch. That is entirely up to IOG and the first version will be a starting point to optimize, update and build functionality. Ilya has included the assembler in the ErgoDex Software Development Kit.

The other news of the week is he is moving forward with simulating Concentrated Liquidity Pools. The principle of concentrated liquidity now allows a person who lends money to a liquidity pool or a liquidity provider to define a bandwidth or range in which they provide liquidity. This assists liquidity providers to have more control over their liquidity. While the specific implementation in Uniswap is under a software license, the general concept is an idea and an implementation in extended UTXO will have no similarity other than function.

Pragmaxim is working on cleaning up ScoreX after the latest update.

Lado is both a gentleman and scholar. Reviewing his tutorials is an awesome tool for new users.

If you are new to the ecosystem please check out https://ergotutorials.com

This week we have two new tutorials check them out below. Also thanks for dropping a jpeg for the update.

Apex is wrapping up the changes to the node interface. Those of you who run a full node will see some improvements after testing.

Morphic is back. He merged an update in the Sigmastate-interpreter removing unused code. He is working on preparation refactoring on our journey towards v5.0. He has been assisting with some aspects of the Ergo Foundation incorporating. It looks like he is also reviewing a PR for the Andriod Wallet and Ergo Improvement Proposals.

Kushti has been working on optimizing the newest reference client 4.0.15. Those of you running nodes may want to update them soon.

He is already looking into the next version 4.0.16, to have improved syncing and peer information.

He is also working with ScoreX to prepare for v5.0.

Many of you may have heard about Kushti discussing the possibility of prolonging the emission period via a soft fork. Those of you that have not can find the discussion here.

There was an article that dropped this week covering this as though it was definite. The intent was to begin a discussion within the community. I know Kushti enough to tell you that community consensus and approval is an aspect he cares about, this is not an order…

It is an invitation to participate, give feedback and help come to a consensus on the best path forward.

Kushti is also working on the LETS Ergo Improvement Proposal. It looks to me (!SPECULATION!) like he is playing with ways to keep costs down by running the LETS offchain or as a side-chain.

Luivatra is playing with the ETH-USD oracle that he created. It looks like it will be added the explorer soon.

He has also been playing with a took to Detect NFT copies. The dirty scoundrel that spams the AuctionHouse with fakes is still at it, unfortunately.

PLEASE DO DUE DILIGENCE BEFORE BUYING NFTS

MrStahlfelge released the Cold wallet update 1.4 this week. I hope everyone caught his video. This is a novel solution that could help people that have an extra android device increase the security of their transactions without the need for a hardware wallet.

https://www.youtube.com/watch?v=maau3TDC19k

He is working to move the dove to JVM only module making it flexible across other platforms iOS and perhaps even Desktop!

He is working on building Ui and we have a screenshot of the current version. I know this will make many users out there happy.

Code_For_Uss is wrapping up work on the update tokenSalesService, the scanner, and has been playing around with ErgoFund contracts in the Ergo Playground.

Anon_br is working on the ledger hardware app, as well as improving Yoroi.

Greenhat and team have been busy. The list of community devs he is working with seems to be growing.

We also got an update that the BIP-32 path and soft derivation for Ledger support is finished.

Moein is dropping the update for MHS and crew this week. The Waves gateway (via gravity) is under development. This will potentially allow ERG and oracle data (specifically v2 when running) to be ported through the Waves ecosystem.

The New Raffle UI is still in being tested. I am sure once it is launched everyone will know.

DeadIT is working on updating and reviewing frontends throughout the Sigmaverse.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store