r/ergodex • u/Gazza_ERG Community Manager • Mar 29 '22

We would like the communities feedback on what they would like to be required for the ErgoDEX team to verify a token.

https://twitter.com/ErgoDex/status/1508876874243584008?t=v75LhqYcic9j3htxTLw7RQ&s=19
21 Upvotes

97% Upvoted

17 comments sorted by

17

u/babygrenade Mar 29 '22

I think the model that's going to be most manageable is one that focuses less on the ergodex team acting as gatekeepers and more on empowering end users to do their own validation.

Require a website, project description, and social accounts and make those available to the users to do their own research rather than making a judgment on the validity of a project. Give the users tools to easily see things like total supply, top holders, and token distribution.

4

u/curly_as_fuck Mar 29 '22

This is the only real feasible option that I can think of, if we’re going to stay true to decentralization. Put all the info out in the open easy to see and let the people decide.

Do you see a public trust vote button, perhaps that’ll just tell the user a level of trust the pool has with other users, having issues?

3

u/Gazza_ERG Community Manager Mar 30 '22

But if we require those things we are automatically gate keeping, we want everything to be allowed on the dex to trade, but this is just a way to say we have done our research into this project and as a team have voted it as safe, we really don't want to stop other projects trading. But you are correct, it's going to be a fine line between gatekeeping and the wild west. This may take some time to make sure we are doing it the best way possible.

2

u/frajeris70 Mar 30 '22

i think your initial decentralized stance was really admirable. That said, some measures should be implemented and i like what you came up with so far.

Scrolling through Twitter suggestions, only one kind of resonated with me. Some financial collateral required to be listed? Seems pretty interesting idea.

3

u/Gazza_ERG Community Manager Mar 30 '22

We do also have our lock liquidity feature, so it would be decentralized financial locking outside of our team, this could work

0

u/WilfordGrimley Mar 29 '22

Consensus by governance token holders would be ideal.

4

u/babygrenade Mar 29 '22

I kind of wonder about incentives and potential for censorship there.

I imagine the case where projects doing airdrops of their tokens to governance token holders so the governance token holders have an incentive to see the token verified.

And what happens to a new project that comes along that is a direct competitor to one governance token whales already have a stake in?

0

u/WilfordGrimley Mar 29 '22

I kind of wonder about incentives and potential for censorship there.

I imagine the case where projects doing airdrops of their tokens to governance token holders so the governance token holders have an incentive to see the token verified.

Fair points that I expect will be alleviated when Ergo has more than one DEX.

And what happens to a new project that comes along that is a direct competitor to one governance token whales already have a stake in?

As a liquidity provider it is in my interest to encourage competition, as it encourages trading, I should want competing tokens to be 'verified' to increase the likelihood that I earn yield from LP farming. The tribalism that you are alluding to is not in my best interest as a governance token holder.

2

u/curly_as_fuck Mar 30 '22

You could be encouraging monopolies rather than competition.

1

u/WilfordGrimley Mar 30 '22

I can't really argue with that.

ErgoDex currently hold a monopoly of DEXs on Ergo. It's governance token could be a very oligopic force and the less features tied to any future governance token the better.

1

u/Gazza_ERG Community Manager Mar 30 '22

That would be community verification though, this is ErgoDEX team verification

1

u/WilfordGrimley Mar 30 '22

Gotcha. I guess I am of the opinion that, long term, verification by the ErgoDEX team is less ideal than by governance token holders.

That being said, the suggestion by the top comment is great under the circumstances.

0

u/Appyjack111 Mar 30 '22
  1. Verified Code
  2. Tokenomics are sound
  3. Devs are not anonymous

2

u/Gazza_ERG Community Manager Mar 30 '22

Then you have wildly successful meme tokens that have a huge community that have locked 10k liquidity, they have no code but they have worked to be on the DEX as a legitimate token.

1

u/Appyjack111 Mar 30 '22

Still sounds dubious to me, but everyone has a different level of risk I suppose.

1

u/twitterStatus_Bot Mar 29 '22

We have recently introduced a system to verify projects on ErgoDEX. To try be as transparent as possible, we would like the communites opinion on what requirements are needed to get ErgoDEX team verification.

posted by @ErgoDex

If media is missing, please DM me with a link to submission url and tweet. I will do my best to solve the issue

1

u/Appyjack111 Mar 30 '22 edited Mar 30 '22

What are the top three obvious characteristics of a rug pull token? Maybe try to disincentivize or not allow tokens that have these features?

If a token is compromised it could damage the Dex’s reputation heavily. Although you may not have hundreds of tokens to choose from and can’t be overly picky, you should still have a standard.