OpenANX aims to be a crypto exchange platform that combines the transparency of decentralized exchanges with the liquidity and reliability of centralized exchanges. They are essentially creating a more transparent marketplace for fiat-crypto exchanges to compete for customers while aggregating the order books across them all to improve liquidity for all traders.
In the current model of centralized exchanges, users deposit funds and get IOUs managed by the exchange. They don’t control their funds anymore, and all ownership is recorded in the exchange’s central database. They operate somewhat like a bank without being regulated as one. The exchanges do compete against each other but there are few ways to assess the relative risk of using one versus another. However, they provide liquidity needed for efficient markets and they are unique in providing fiat on-ramps to crypto-markets–something decentralized changes haven’t been able to replicate.
OpenANX proposes a new model based on several key system actors:
- Asset Gateways: users would deposit funds into entities called “asset gateways” and then be able to use the OpenANX platform. Asset gateways would perform KYC/AML–as centralized exchanges currently do–and would mint tradeable ERC-20 tokens upon receipt of funds. The tokens would be specific to the exchange and the fiat: Poloniex could mint PoloUSD or a new hypothetical asset gateway could mint AsgaUSD. These tokens are effectively collateralized by the fiat deposit, and when any user acquires them through trading and wants to transfer to fiat, they would swap the AsgaUSD tokens for USD. The relative prices for all the tokens would be different: for example, there would be a PoloUSD-AsgaUSD trading pair, and any difference would reflect the perceived relative risk that attempting to swap the token for fiat would be unsuccessful. The price fluctuation around Tether following the uncertainty around their banking shows that this uncertainty does exist.
- Order Book Sponsors: People would need to sponsor an order book in order to open a market. Asset Gateways can serve as Order Book sponsors.
- KYC/AML Providers: Each Asset gateway would stipulate their own KYC/AML process, much like centralized exchanges do today. These could follow both their business model and the relevant regulations in their jurisdiction. KYC/AML might be different for an Asset Gateway based in the US relative to one based in South Korea
- OpenANX DAO: There will be a DAO to help govern the OpenANX Platform. The DAO allows gateways to open order books and records when ETH addresses have completed KYC/AML. The platform will have the ability to restrict transfer of some fiat tokens based on KYC/AML: for example, AsgaUSD could only be transferred between users who have had their passports verified. The OAX token is primarily a DAO token. The DAO will help guide the operational decisions of the OpenANX Foundation, which manages the platform and the technology, particularly that which aggregates order books and provides transparent information about asset gateways.
- Dispute Arbitrators: The white paper stipulates that there will be a legally enforceable dispute resolution process: “The Foundation will specify a dispute resolution process, utilizing an internationally accepted dispute resolution system.” This hasn’t yet been defined.
What is the Token Being Sold?
The OAX token has both voting and contribution rights. It is not required for basic trading. It does not have economic rights to any profits or fees.
The OAX token will be required to register as a member of the network and access services. It will also confer voting rights to the token holder in governance decisions.
Different amounts of tokens will be required to participate on the network at different levels. There are four participation levels outlined in their white paper:
- Voting member
- Founding member
- Third party service provider
- Asset gateway
The exact amount of OAX tokens required to register as a member at each level has yet to be decided. Tokens redeemed for membership are burned, resulting in a deflationary model. The memberships themselves will be tradable or transferable in some way.
OpenANX is a project of ANX international, a Hong Kong based blockchain technology company that started in 2013.
|Incorporation status||ANX International, Hongkong, 2013 and OpenANX Foundation, HK, 2017|
|Team openness||Totally transparent|
|Blockchain Developer||Hugh Madden as chief architect
and Lio Lunescu as main developer
|Technical White Paper||Yes|
|Available Project Code||Token contract code only|
|Role of token||Access rights (burned to register as a member) and voting rights|
|Token supply||100 million|
|Distributed in ICO||30 million [another 30 million reserved for a second sale in one year]|
|Emission rate||None–fixed supply with long-term deflation through token burning|
|Consensus method||Ethereum consensus|
|Sale period||June 22nd 13:00 UTC – July 22nd 13:00 UTC|
|First price||USD 0.75 ETH based on ETH/USD @ 12:00 GMT Jun 21 2017|
|Investment Round||First public offering|
|Token distribution date||July 29th, after completing KYC|
|Min investment goal||Already met through pre-commitments (estimated at $9.75m)|
|Max investment cap||30m OAX, estimated at $22.5m|
|How are funds held||Ethereum Smart contract|
|Minimal Viable Product||6/30/2017|
|Bonus schedule||No Bonus|
NOTE: This project will require KYC to withdraw purchased OAX. US investors are permitted.