As crypto trading increases, many cryptocurrency exchanges are moving forward with their launches. The latest is OKEx. OKEx (www.okex.com), the world’s largest cryptocurrency spot and derivatives exchange, announced the 0.10 version of OKChain, the commercial public chain developed by OKEx, will be launched on May 25. The rules of validator selection and dividend mechanism have been revealed at the same time. Users who have staked OKT token can vote for up to 30 candidates with one ballot, generating 21 validators.
After the update, OKChain will become the first public chain developed by crypto exchange to support the access of third-party institutions. At the same time, OKChain launched the recruitment of validator candidates globally and invited users and institutions to participate.
“We hope that more users and institutions will participate in OKChain. The foundation of OKChain’s ecological construction is an important preparation before the launch of the OKChain mainnet,” said Alysa Xu, Chief Strategy Officer of OKEx. “Based on the new 0.10 version, users can realize their will through the voting mechanism and make choices that are in line with their own interests and diversified the development of OKChain. We are looking forward to co-constructing an open, decentralized, practical, and diverse ecosystem with our global users.”
Compared to other exchange public chains, OKChain tends to adhere to the ideals of decentralization, fully utilizing the nature of peer-to-peer network, irreversibility, and efficient autonomy in its source code. Given that, all participants, including OKEx as the developer, cannot control this public chain.
In addition, instead of requiring nodes to submit a proposal to the public chain “governor” before every action in traditional public chain, OKChain adopts a “peer-to-peer network”, which enables node runners to develop DEX and dApp or decide which cryptocurrencies and trading pairs to list without having to acquire any permission from the “governor”. In a nutshell, OKChain is a fully community autonomous public chain.
OKChain adopts a representative system. OKT holders who have staked OKT token will become voters, who can choose to become an “Ordinary voter” to vote for validators directly or delegate their voting power to another account, called “proxy voter” to vote on their behalf.
Each voter is allowed to vote for up to 30 validator candidates. For example, if a user staked 100 OKT, they can cast 100 ballots each for up to 30 validator candidates. The top 21 candidates with the highest number of votes will form the core set of validators while others will serve as validator candidates.
Having 21 validators is the most mature solution, it can maximize the balance between the degree of decentralization within the ecology and the efficiency of ecological operation. As of the voting mechanism, compared with “choosing the best one” and “choosing a few good ones”, the latter is more fault-tolerant. In addition, it can also effectively weaken the influence of large OKT holders in the initial stage of the OKChain mainnet launch, so that the voting results will reflect the wishes of all OKT holders within the OKChain ecosystem better.
According to public information, 100% of the genesis block OKT will be mapped to OKB holders, which means OKB holders will become the first batch of OKT holders and get a head start in some spheres, including becoming supernodes, voting, DEX operation, etc. Besides, additional OKT will be issued 1-5% annually, part of which is expected to act as block generation reward and the other as voting reward. Apart from that, DEX operators will also obtain matching fee, transaction fee etc. as income.