Mainly through the time component. In brief, our Security Tokens offer a trade-off:
Boosted rewards in the "short term" (defined as from Launch to the completion of Self-Decentralization) in exchange for everyone's consensus to Exit in the distant future at predetermined conditions, thus leaving behind a fully self-sustained, ownerless entity that'll keep operating as if nothing's changed, while distributing 100% of proceedings on an ongoing basis. Thus, fulfilling our mission & promise.
Will it remain sustainable in the long term?
Oh yeah, in fact it will likely grow faster than it ever could while carrying the "burden" of shareholders.
The more volume gets distributed the more participation becomes desirable, and greater magnitudes of volume are generated.
Because we use the exchange's own cash flow to power an unprecedented, massive activity incentives program. Simply put, the more money's up for grabs, the more people will want a slice of the pie and be willing to put in more activity than they would otherwise - thus contributing to growing the amount distributed the next period.
Ask yourself: how much more profitable would trading be without predatory intermediaries?
Where will CryptoArena's services be available?
Everywhere, eventually. But we'll likely leave the U.S. for last due to the burden of compliance.
More details to come in due time.
When will CryptoArena officially Launch?
It's a little early for announcements but check out the roadmap.
CryptoArena is a regulated financial platform featuring high degrees of automation, we will need to be successfully audited, after building our solutions, before we can officially launch the platform. Stay tuned for updates (and for a bunch of smaller but still interesting projects we'll deliver along the way)!
Does CryptoArena require KYC?
Yes. For everything other than basic crypto-to-crypto pairs (not including security tokens). You need a KYC approved account to accrue Glory Points - which you need for revenue distributions.
Why would a Decentralized Exchange require KYC?
You'd be surprised how much more difficult it is to distribute money rather than just take it.
Also, we're based in the Netherlands and pride ourselves on the transparency of our promises, rather than operating from a tax haven, and the services we offer require AFM oversight. CryptoArena only shares data as required by law, for compliance with taxation legislation and anti-money laundering purposes, and will never sell or share user data to other third parties.
About Patrons & Champions
Do Patrons also get Glory Points?
Yes. All Users paying any on-platform fee contribute to distributions & earn points, in different weights (trading fees > rest).In fact, both Patrons & Champions earn more points than "normal" Users, due to earning multipliers from cooperative trading.
Can anyone be a Champion?
Yes. Generally speaking, the market doesn't care who you are if you can deliver results.
That being said, there is also a "pro" Champion category reserved to certified industry professionals.
Are Champions anonymous?
Pseudonymous. Not Anonymous. Means you use fake identity while acting publicly on the platform, but that the company knows who you are. We don't sell or share this information with anyone other than what is required by law.
Toggle real ID on/off
Select individuals, such as certified pros, influencers or other public figures who may wish to use their real identity can do so by manually toggling a dedicated option in their profile settings.
We generally advise against using your real id regardless of circumstances as a security precaution.
What prevents Champions from working against my interests?
Great question. There's many different ways a representative could various aspects to consider:
All patronages are non-custodial interactions
This means they can't "run away" with your money, because it doesn't leave your wallet during a Patronage, it's just locked. It'll only move in case of an unsuccessful patronage resulting in a loss.
Success Fee Based
The basic fees of Champions are strictly success fees. Simply put, if they don't make you money they don't get paid. Contracts can be customized into more complex versions which may or may not include additional fee structures, mutual agreement remains required.
Reputation & Metrics
To become a Champion, Users must agree to let us collect and publicly display certain key information relating to their trading performance. Their "persona" may change, but not their numbers.
If Champions "works to fail" their metrics will plummet, rendering it very difficult for them to acquire enough patrons to profitably continue operating as a Champion.
This is why their persona may change, but not their numbers. Real ID is required, one per account.
How should I evaluate/pick Champions?
You can set/negotiate your own targets& conditions for each Patronage, so its mostly up to you and what you would consider appropriate. Keep in mind, both parties need to agree on a set of terms & conditions, then confirm them, for a patronage to be officialized.
There are 3 key metrics that Champions work to maximize, and by our systems rank Champions for the purpose of Leaderboards, by which Patrons may evaluate them:
Glory Points - are a weighted indicator of individual network contributions. As a rule of thumb, more points = better. Champions with more points are either more active, more successful or deal in larger volumes - or a combination thereof. It is a valuable indicator, but not very specific.
PPR - stands for Positive Patronage Rate. As is (hopefully) intuitive, this is the ratio, expressed in percentages, at which a Champion has succeeded in deliver the minimum target of the Patronages he has accepted.
RoR - stands for Rate of Return (on investment). This is the gain (or loss) compared to the cost of an initial investment, typically expressed in the form of a percentage. When the ROR is positive, it is considered a gain and when the ROR is negative, it reflects a loss on the investment.