Exchange Integration Voting Ballot

Purpose

This ballot provides purpose for points and converts private exchange integration negotiations into a public, community-driven process that reimburses liquidity providers who incur costs. The mechanism combines a points-staking voting system with public offers from exchanges.

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Overview

• Roughly every 2-3 weeks, a poll selects the next exchange to integrate.

• Voting mechanism: Users stake points to vote. Each point equals one vote. Staked points are locked for the duration of the poll and returned at its conclusion. Points are never burned by voting.

• Exchange offers: Exchanges that seek integration post a public offer on the platform. An offer can include but not limited to:

  • A one-time integration fee (for example, $50,000)

  • Fee rebates or maker/taker discounts

  • Promotional liquidity or marketing packages Offers are public so exchanges can compete transparently and users can evaluate trade-offs.

• Winning outcome: The winning exchange is integrated. If the winning exchange had offered an integration fee, the integration fee is distrbuted to eligible users. Further details please see below.

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Voting Mechanics

To ensure a decisive outcome, the voting process follows this model:

• Total Commitment: Users may only vote for one exchange at a time. When a user selects an exchange, their entire balance of available points is staked towards that choice. Vote splitting (allocating points across multiple exchanges simultaneously) is not permitted.

• Automatic Compounding: As users earn additional points during the voting period (e.g., through trading volume), these new points are automatically added to their existing vote selection. No manual action is required to update the stake.

• Vote Migration: Users retain the flexibility to change their vote at any time before the poll closes. However, switching votes is an "all-or-nothing" action; the user’s entire staked balance will be withdrawn from the original choice and redeposited into the new choice.

Example Scenario:

• Week 1: A user has 100 points and votes for Exchange A. All 100 points are staked on Exchange A.

• Week 2: The user earns an additional 50 points from trading activity. These points are automatically added to Exchange A, bringing the total vote weight to 150.

• Changing Votes: If the user decides to switch to Exchange B, they cannot split the vote (e.g., 100 for A and 50 for B). Instead, they move their vote to Exchange B, transferring the full 150 points to the new selection.

• Conclusion: Once the voting period concludes and the winner is declared, points are returned to every user in full.

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Community Integration Pool

Principle

While exchanges are not obligated to pay an integration fee, they may choose to include a cash offer in their proposal to attract votes. If a winning exchange provides a cash fee, it is designated as the Community Integration Pool.

This pool is not treated as a lottery or a windfall. Instead, the objective is to reimburse active users for the actual costs they incurred (fees and slippage) while providing liquidity and trading on the platform.

Allocation Logic

The pool is distributed pro-rata to eligible users based on their Net Loss during the campaign window.

• Definition: Net Loss = Transaction Fees + Slippage/Market Making Losses

• Mechanism: Accounts with higher Net Losses receive a larger portion of the pool. This ensures that the users who incurred the highest fees from trading (in order to earn points for voting) are prioritized for reimbursement.

Eligibility

To qualify for a share of the Integration Pool, an account must meet the following criteria:

• Volume Threshold: The account must have generated at least $1,000,000 in lifetime volume.

• Vote Independence: Eligibility is based strictly on volume and activity. A user is eligible for the share even if they did not vote for the winning exchange.

Disclaimer: The platform reserves the right to modify the allocation logic, eligibility criteria, and distribution mechanics at its discretion. These parameters may be updated to prevent abuse, ensure fair play, or adapt to changing market conditions.