1/ Injective is far bigger than a DEX, it's a protocol that will allow anyone to build any type of exchange on top. From Institutional grade exchanges to entry level. Whether it be Spot, Derivatives, NFT's, Equities, Commodities, any market can be traded without restrictions $INJ
2/All the necessary tools will be provided and there will be shared / decentralised order book enabling liquidity to be shared between every exchange
With trustless bridges connected to all the major blockchain platforms enabling seamless, composable cross-chain interoperability
3/Exchanges who originate orders in the shared orderbook are rewarded with 40% of the trading fees, whereas the other 60% are used to buy and burn $INJ
The 40% referral fees could be used to buy and burn the referring exchange's token or through other rewards back to their users
4/Any market can be added through governance, no huge listing fees or being at the mercy of centralised exchanges, whilst having unrestricted access to markets worth quadrillions without KYC and regardless of originating country
To conclude this mini-series, let's look at Tokenomics and how Avalanche $AVAX compares to other platforms. 🧵👇
2/ Unlike most other staking platforms which have an unlimited supply and continuously increase their supply at a compounded rate through high inflation, leading to dilution of existing token holders, Avalanche $AVAX has a fixed capped supply of 720 million, creating scarcity.
3/ 360 million tokens were minted at launch (with vesting periods between 1 and 10 years) whilst the other 360 mil are used for rewards for staking released over decades.
As with Bitcoin, reward rates will decrease over time as it gets closer to the capped supply
Next up is Customisability and how Avalanche compares to other platforms. 🧵👇
2/ Homogeneous blockchains offer very little in the way of customisation in the underlying platform, they offer a single solution using the same protocol. Examples include Ethereum, Solana, Near and Algorand. Whether it's a single chain, sharded or side chains, it's all the same.
3/ Each blockchain has their strengths and weaknesses through. A general purpose blockchain tries to cater for all requirements, but excels at none, resulting in developers having to compromise on a solution that best suits their overall needs rather than what is optimal.
Next up is Decentralisation and how Avalanche compares to other platforms. 🧵👇
2/ Decentralisation is a key component to what sets blockchain apart from traditional solutions, it increases security, censorship resistance, enables trust and is more inclusive.
3/ However as many platforms seek higher performance, they are taking the easy route by sacrificing decentralisation.
At one extreme you have Binance Smart Chain which is operated by just 20 validators of which the majority are controlled by Binance.
2/ Classical consensus protocols are based on all-to-all voting and typically have a designated leader who initiates the decision process and a series of rounds of all-to-all communication to ensure that all correct nodes reach the same decision.
3/ They typically require quadratic communication overhead with all-to-all communication of O(n²). This means for each round if there is:
A network of 10 nodes = 100 messages
A network of 1,000 nodes = 1,000,000 messages
A network of 100,000 nodes = 10,000,000,000 messages
First, I will cover Security and how Avalanche compares to other platforms and then separate threads for the others later. 🧵👇
2/ Sybil Resistance - Avalanche uses Proof of Stake instead of Proof of Work, with nearly $10 Billion of staked value securing the network with an impressive 77.26% of the entire supply being staked, just 6 months after mainnet. It is currently the 3rd largest in staked value.
3/ Proof of Stake is not only more secure than Proof of Work as evident by the number of 51% attacks seen against POW Chains due to the ease of renting hash power compared to acquiring stake, but it's also requires far less energy consumption.
1/ Derivatives are the most heavily traded asset class globally worth quadrillions of dollars. Chinese Traders are banned from accessing US equities and vice versa. UK has banned crypto derivatives. $INJ offers a fully decentralised exchange where all those trades can take place
2/ As well as access to Cross Chain DeFi Trading / NFT's / Cross-Chain Yield Markets / Forex and Interest Rate Futures, Stocks and many more.
For every trade made 0.1 - 0.2% is charged as trading fees. Of which 60% of that is used to buy $INJ which is to then burned.
3/ Coinbase did $335 Billion in volume in 3 months in a market with a market cap of under 2 trillion. 0.1% of that volume as fees would be 3.3 Billion, 0.2% would be 6.6 Billion
Coinbase is heavy regulated and has very limited set of assets to trade and blocked in some countries