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Business Brief

What is ExchangeCoin?

ExchangeCoin is a decentralized, autonomous digital currency governed directly by its voting stakeholders. Stakeholders vote to decide on consensus rule changes, as well as matters of policy.

Why is ExchangeCoin needed?

ExchangeCoin (EXCC) was established in 2017 with a mission to advance the development of a user-focused cryptocurrency exchange ecosystem. Its decentralized cryptocurrency exchange platform serves as the project’s primary milestone, setting it apart in the world of digital currencies.

Designed to bolster the internal economy essential for supporting the decentralized exchange, ExchangeCoin functions as a utility coin within the ecosystem. The coin plays a significant role across various components of the project, and its desirability is expected to grow in tandem with the success of these endeavors.

As the cryptocurrency market evolves, the need for user-centric solutions becomes increasingly important. ExchangeCoin’s dedication to creating a seamless and decentralized cryptocurrency exchange platform positions it as a vital player in the industry. By fostering an ecosystem built on the foundation of a utility coin, ExchangeCoin aims to deliver a robust, secure, and efficient trading experience that caters to the diverse needs of cryptocurrency users worldwide.

How does ExchangeCoin work?

ExchangeCoin builds upon Bitcoin’s foundation by incorporating a unique hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus mechanism, coupled with the Politeia governance platform. This innovative approach addresses centralization, funding, and governance challenges in the cryptocurrency space.

In ExchangeCoin’s hybrid system, PoW functions similarly to Bitcoin, but miners receive only 70% of the block reward. The remaining 30% is allocated to PoS voters, who are responsible for quality control of the miners’ work. This distribution reduces miners’ power, empowers coin holders, and bolsters network security.

ExchangeCoin holders can participate in PoS voting by staking their funds in a time-locked manner in exchange for tickets. These tickets grant voting rights and influence key decision-making aspects, such as:

  1. Consensus rule changes (on-chain)
  2. Validation of PoW miners’ work
  3. Treasury project funding (Development, communications, events, research, etc.)
  4. Policy (Constitutional amendments, procedures, standards, etc.)

The time-locking mechanism ensures that voters have a vested interest in the system, while the PoS portion of the block reward incentivizes staking and active involvement in the governance model. ExchangeCoin aims to attract discerning investors interested in actively participating in a self-funded, decentralized, and self-governing project, thereby fostering a robust and sustainable cryptocurrency ecosystem.