What Is MDEX (MDX)?
MDX is the native token of MDEX, also known as Mandala Exchange, which is an AMM-based decentralized exchange (DEX). AMM stands for Automated Market Maker. It provides users with quick development and release of new apps, as well as good market depth, reduced trade slippages, and higher rewards for miners. The MDEX price chart featured above displays the MDX price. You should check that out if you're thinking about investing in this token.
Initially, MDEX started running on both Ethereum and Huobi Ecological Chain (HECO). Why? Ethereum, while being generally a successful and innovative blockchain, has issues with sluggish transaction speeds and excessive fees. Thus, the HECO blockchain was chosen as a solution for these problems because it has low transaction fees and quick processing times.
However, in April, 2021, MDEX was also launched on Binance Smart Chain (BSC). To conduct cross-chain transactions between HECO, Ethereum, and BSC, MDEX Bridge was established.
MDEX mostly differs from other DEXs due to its dual mining mode, which consists of liquidity and transaction mining (usually, DEXs only employ liquidity mining). With liquidity mining, users have to provide liquidity in exchange for rewards. With transaction mining, on the other hand, miners have to participate in MDEX transactions and provide transaction volume in order to be eligible for rewards.
Besides that, MDEX offers the Initial MDEX Offering (IMO) protocol, which allows projects to raise funds. It works through the public swap function, which requires users to firstly provide liquidity to MDX/HT and MDX/WBNB pools in order to get swap shares.
After they do that, they get IMO tokens. Besides, even if the sale doesn’t turn out to be 100% successful and not all funds are used, MDEX returns these funds to user wallets.
The security of the DEX is ensured through auditing and an incentivized campaign. Talking about auditing, MDEX was audited by such companies as Fairyproof, CertiK, and Slow Mist. Additionally, there is a project called the Bug Bounty Campaign. Professionals in the security sector are rewarded with MDX tokens for spotting various system flaws.
The Founders of Mdex
The founders of Mdex are Nate Flanders and Anant Handa.
Nate Flanders is the CEO of MDEX. He has a degree in business management and administration. He also worked as VP of operations at Decent. Bet and was a president at BitWatch.io. Besides that, he founded Phone ResQ and Crypto Coin Trader. Anant Handa is the CSO of MDEX. However, there’s not much information about him online.
The Purpose of MDX Tokens
MDX token is based on the ERC-20 token standard. The main use case of MDEX is rewarding transaction and liquidity miners, as well as participants of the Bug Bounty Campaign. Besides that, MDX tokens provide holders with governance rights. Holders of MDEX tokens have the power to decide whether a new token should be listed there and whether certain assets need to be collateralized.
FYI, you can analyze the MDX price patterns and how they managed to change over time on the aforementioned MDEX price chart.
Tokenomics of MDX
MDX tokens are inflationary since they don’t have a max supply set. The majority of the MDEX token supply (80%) goes to liquidity and transaction mining rewards. The remaining portion is split between the development team, investors, and marketing purposes.
In order to keep the MDX price from decreasing, MDEX utilizes repurchase-and-burn and repurchase-and-reward mechanisms. The names of the mechanisms are quite self-explanatory, MDEX either buys its tokens from the market to burn them or to use them as rewards.
Besides that, it employs block reward halving, which takes place every six months. This means that block rewards are cut by 50% once in half a year.
