DeepBrain Chain has unveiled new details of its DeepToken Exchange operational model in a Medium post. The new exchange was announced by the company at the start of the month claiming to be the “world’s first AI industry digital asset exchange,” and that its focus is to “provide relief to quality AI projects struggling to achieve the necessary funding required to break into the AI industry.”
The latest announcement by the platform gave a brief analysis of the market for blockchain projects and cryptocurrency exchanges, noting the fierce competition for users and market share. DeepBrain Chain stated that these competitive forces have led to “exorbitant” listing fees for projects on exchanges on top of transaction and withdrawal fees for traders. The team also notes that some exchanges have adopted a “trading as mining” model to increase volume – and that these models “failed to effectuate real improvement” for user engagement.
These perceived weaknesses and inefficiencies of the market are said to have consequences for blockchain startups. DeepBrain Chain describes the requirement of needing a large amount of capital to pay exchange listings as a “paradox”, as most platforms cannot afford to pay the fees in order to achieve said funding.
In response to the above problems in the market, the team reiterates its product model does not have listing fees for projects. This, combined with its “voting as mining” mechanism for rewarding engagement and finding quality AI projects in its ecosystem are claimed to be its main differentiators to other exchanges in the market.
The new product model will be instated shortly after the release of the DeepToken Exchange. Each week, a new project will be listed on the exchange via its voting as mining mechanism; scaling down after three months of operation. The voting process will be open to both “AI leaders” and “AI practitioners,” which DeepBrain Chain describes as: “AI company high-level staff, AI project investors, AI professors, AI product managers and AI researchers and programmers.” Importantly, AI leaders will be elected by AI practitioners via a weekly election and its board of AI leaders will consist of fifty people.
There is a two-step voting process for the listing of new projects on DeepToken Exchange. First, it must earn over half the votes in an election process from AI leaders to move to the next round of voting. In the second round, it must then earn a 80% approval rating.
To help facilitate the introduction of new projects to the exchange, there will be a rewards scheme for voting paid out in DPT. Rewards are calculated by how many tokens the voter holds and the number of voters in participation, as DeepBrain Chain describes with the following:
“For each voter their DPT reward is total reward * 1/8th of total voters; the other 7/8ths of the total reward will be divided between each voter according to the amount of DPT they hold in their exchange wallet.”
Additionally, the DeepToken Exchange will use 80% of its transaction fees to repurchase tokens from the market and burn them, with the remaining 20% redistributed to token holders.
More information on DeepBrain Chain can be found at the links below.