Bytom Team Unveils MOV’s Federal Nodes and Token Burning Plan
On April 9th, Chang Jia, Lang Yu and Li Zongcheng, leaders of Bytom team talked with community, federal nodes and media observation groups on an online video live.
Federal nodes are unveiled
Cobo, Bitpie, Math Wallet and imToken (imKey) are listed as federal nodes of MOV.
“MOV is a next-generation decentralized cross-chain Layer 2 value exchange protocol based on Bystack’s mainchain-sidechain architecture. Consisting 3 core modules: Value Exchange Engine Magnetic Contract (Magnet), Decentered Cross-Chain Gateway (OFMF) and Layer 2 High-speed Sidechain (Vapor). OFMF, an open federal management system of, mainly for the original chain asset management and cross-chain operation, is the entrance of the system. Both the external federal nodes and Bytom Ltd participates in the joint asset management and cross-chain operation. The technology of threshold signature and multi-signature is adopted to ensure that the funds will not be mastered by any party.”
Said Lang Yu, CEO of Bytom, in response to the question of Meng Xiaoshe, chief editor of Huoxing, on the follow-up plan of Bytom blockchain, Chang Jia introduced the four-step plan in detail.
Introducing dozens of digital assets, 45 transaction pairs
Step 1: MOV will soon access more cross-chain assets, including dozens of digital assets including BTC, ETH, USDT, with a total of 45 transaction pairs, forming a preliminary ecology;
Launching Ring exchange, market making based on Algorithm
Step 2: MOV has made some innovation. Users can play two roles: one is to participate in transactions, which is very convenient for cross-border asset exchange; the other is to provide liquidity, users can deposit reserve assets and enjoy the commission share of algorithm exchange. It’s a bit like Uniswap model, but it has its inherent defects in theory, because economists put forward the “Blockchain Trilemma” theory in the monetary field, in which the free flow of capital, the fixed exchange rate and the independence of monetary policy are impossible to co-exist. MOV, like Curve, aims at stable coin assets, because stable coin assets just realize the “Blockchain Trilemma”.
Launch of MOV, the stabilized financial system
Step 3: Compared with MakerDAO, MOV supports more mainstream multi-asset mortgages. On the other hand, MOV will calculate and adjust the stability cost through a sophisticated financial model, and restrict it by algorithm. Now we understand MOV as DEX, but our ultimate goal is to stabilize the financial system, while the exchange and transaction function is attached. Moreover, the exchange function of MOV is not at the level of smart contract, but at the level of system integration. Therefore, unlike Ethereum, which has a very frequent contract transfer, it is relatively safer.
Upgrading the mainnet of Bytom blockchain and exploring the scenario of synthetic assets
Step 4: Initiating the mode of mortgaged synthetic assets or derivatives through smart contracts. The division between the main chain and the side chain of Bytom is very clear. The main chain is responsible for asset issuance and the side chain guarantees transaction efficiency. Due to policies and regulations, it is unlikely to issue native assets like Ethereum ICO in the main chain at present. A very good scenario of mortgage synthetic assets in the main chain, similar to the pattern explored by synthetix, is very good. You can map some real assets on Bytom blockchain, such as stocks and gold, and then mortgage them through BTM. If you are insolvent, you will be liquidated, and the risk of users is relatively small.
Incentive and burning plan of ecological parties
What is the driving force of MOV for DeFi? In response to the question of Tong Yang, CEO of CapitaIN, Chang Jia answered it in three aspects.
“First, performance, based on BBFT Byzantine fault tolerance, Bytom blockchain generates one block every 0.5 seconds, each block packs 8000 transactions with 16000TPS, realizing the same experience as the centralized exchange; second, vision, Bytom blockchain makes some optimization specifically for the DeFi scenario, including magnetic contract, loop trading; third, ecological incentive model, which fully considers every ecological character, including users, consensus nodes, federal nodes, external developers, external wallets, market makers, and MOV partners, and provide economic incentives. Specifically, including through the MOV handling fee burning plan and flint incentive plan.”
“We will burn 20% of the handling fee of MOV transaction on a regular basis every month. This forms a virtuous circle. Finally, the BTM burnt every month is larger than the reward of new token generated by the block every month, so as to find an ideal critical point.”
“For the federal nodes, they are the most important partner of MOV ecology, and MOV’s selection is also very cautious. At present, most of them are wallets. Because the transaction is a transfer as DeFi scene happens in the wallet. The revenue generated by MOV will have a fixed proportion and be distributed according to the contribution of federal nodes.”
“For consensus nodes, through the flint plan, Bytom foundation will give out its BTM every year to reward consensus nodes, because they play an important role in packaging transactions. For external wallets and developers, MOV is not just Bytom’s built-in functions and protocols. In fact, all wallets can support MOV protocols. Whether you are an official wallet or a third-party wallet, a federal node or a consensus node, they are all equal in this ecosystem. The allocation proportion depends on the number of contribution transactions. For market makers and MOV partners, transaction fees can also be shared. Therefore, MOV will consider every organization, individual, user and BTM holder who are helpful to MOV in the ecosystem, and they can benefit from it.”
Chang Jia repeatedly mentions that ICO and IEO are prohibited in China. In terms of a transaction form, MOV is not a transaction, but a transfer, that is, users transfer an asset from one address to another according to a certain agreement to form an asset swap.
Bytom’s main chain allows anyone to issue assets on, while the side chain allowed assets issuance through federal nodes. MOV will first support mainstream assets such as BTC and ETH. Other synthetic assets will be handed over to external partners. For example, if MOV to issue Japanese yen stable coin, Euro stable currency and gold stable currency, external developers and teams will do it. MOV will also select the best partners in the industry.