The Sigmadex protocol has its community at heart, that's why the governance of the ecosystem and various factors of the protocol are in the hands of our community.
At the heart of Sigmadex is our community. In this respect, our protocol and the various components of our ecosystem will be available for modulation by our members, so as to assure that they will have complete democratic voting rights within our system. This is in stark contrast to the conventional legacy financial system we currently live in, where a small group of agents decide how we economize in society.
As our intention is for Sigmadex to become the most utilized DeFi ecosystem across the globe, we want to ensure that every member has the right to create ideas and vote on changes to optimize their experience and earnings within the network. This falls under the philosophy that two brains are better than one, and in extension, thousands of brains providing their opinions on how a system evolves well surpasses the capabilities of a few agents dictating the future of our economical system.
Our idea of providing governance to our community was an essential consideration in our construction from the very start, which unfortunately contrasts with many projects in DeFi today. DeFi projects currently in the crypto-space promise their community the ability to change variables within their platform, but don’t have the infrastructure and/or ease of accessibility to actually allow them to do so. We have made it so that the ease of voting, and modulation factors, were seamlessly integrated into our system, so as to assure that every member could efficiently contribute to the evolution of Sigmadex.
Considering the fact that our system’s components are quite in-depth, let’s get right into the several key components one can enact their governance within our ecosystem.
Quantitative Voting for Profitability Margins
As with all of our governance, a member must hold a certain amount of our native token (SDEX) to allow voting rights within our platform. As you have learned in our previous articles regarding the penalty fees associated with premature withdrawal of liquidity by our Liquidity Providers (LP) within Sigmadex, the penalty fees themselves can be voted amongst our members. The penalty fees for early withdrawal, and the associated rewards provided to LPs for locking in their liquidity for the full duration, can be changed according to the community’s preferences. This is to ensure that these protocols benefit the masses of our members in regards to maximizing profitability and ensuring the stability of liquidity within our DEX for seamless trading capabilities.
Timeline Adaptability for Our Liquidity Providers
In relation to this, the actual pre-set timelines for time-locked liquidity can be changed, in addition to the associated rewards, depending on the community’s need and tendencies to fulfill liquidity contracts. This governance modulation by our members is in an effort to optimize monetary rewards for the highest proportion of our total community and will adapt to the timelines where LPs are most comfortable locking in their liquidity within our ecosystem. Put simply, we made this sector of voting so as to ensure that the highest proportion of our members will be rewarded for providing liquidity, and in turn, will mitigate loss for premature withdrawal.
Interoperability Forged by Our Community
Finally, as you have learned in our Polkadot article, Sigmadex is built to be highly cross-chain compatible, in an effort to allow propagation of our system throughout the entirety of DeFi. In this respect, our community can vote on which blockchains we will prioritize situating our interoperability with, as well as our member’s preferences on which synthetic assets will be created first within our network. This is to again ensure that our community has an actionable say on the exact trajectory and products provided within our ecosystem, and will allow strategic input for deciding which blockchains may hold the most opportunity within DeFi and, therefore, potential to maximize profitability for our members by connecting with the highest Network Effects across the crypto-industry.
Conclusion
As you can see, every component of our protocol can and will be modulated democratically by our collective community. We will ensure that these votes undergone by our members will be formatted in a highly palatable way so that no user will lack understanding of what exactly they are deciding on when undergoing their governance rights. We have created this infrastructure so that the future members of finance can finally have power over their economical systems, and in extension, will truly have autonomy for how their money is traded, lent, and ultimately, how it interacts with society as a whole.
We would like to thank our earliest supporters for ensuring the ongoing flourishing of our ecosystem and are incredibly excited for the near future when Sigmadex will be fully operational and ready to trailblaze forward as the new age DEX within all of DeFi.
Read our other articles in this series to learn exactly how each of these mechanisms works to create the new-age DEX within the DeFi crypto-space. For the savvier mathematical and/or computer science readers, check out our Lightpaper for an in-depth explanation of each of our components; The validity of which is verified through auditable mathematical models.