DGTX Staking Rewards to Arrive in Q1 2021
Digitex Futures has already made a name for itself in the cryptocurrency space by launching the world’s commission-free BTC futures exchange in July. Since then, it has been growing its user base and adding additional markets including ETH/USD futures. And now, the ambitious young company has announced the next steps for Digitex, including a pivot to Digitex City dubbed as “crypto’s playground,” and a hotly-anticipated DGTX Staking Program, with potential rewards of up to $750,000 per month by the end of 2021.
Creating Demand for the DGTX Token
In a YouTube recording for the Digitex community, founder Adam Todd revealed the pivot to Digitex City and released a new whitepaper outlining his ambitious plans. Essentially, Digitex is growing from being just a futures exchange to becoming an entertainment platform based around crypto.
https://www.youtube.com/watch?v=44o3lNB703Q
The City will be a hub for trading, investing, gambling, and entertainment with all services offered completely commission-free, expanding on the company’s current popular model of zero-fee futures trading. One of its most interesting components will be the chance for DGTX holders to earn passive income by staking DGTX.
Adam recognized the achievement of getting the zero-fee futures exchange up and running. But he also said that he hadn’t yet delivered on his other promise, which is taking the DGTX token to a value of $1.
The expansion of the company to cater to the needs of a huge online gambling and trading community, as well as the chance to make a passive income on their tokens rather than just HODL, are the key ways in which he aims to create demand for DGTX while also restricting its supply, therefore pushing up its value.
According to a blog post on the Digitex Futures website, Digitex is making the Staking Program a priority and, yesterday, opened a wallet for the DGTX Staking Rewards fund, making the first deposit of $100,000, demonstrating the company’s commitment to the program.
How Does DGTX Staking Work?
DGTX owners lock up their tokens in the DGTX Staking Program to receive their proportional share of the daily rewards that are paid out. Staking rewards will initially be funded using the system gains made from liquidations on the exchange. While this figure is always subject to change, Digitex says that the exchange is currently making around $100,000 in liquidations each month. Thus, the first deposit into the staking rewards wallet is reflective of this amount and the transaction can be viewed on the Ethereum blockchain here.
Digitex will continue to allocate all system gains each month to the wallet until December when it plans to publicly open the DGTX Staking Program and start allocating the rewards. “By this time, we estimate that there will be anywhere between $300,000 and $500,000 USDC in the wallet. This entire fund will be distributed to stakers in the first month that the DGTX Staking Program commences.”
Ultimately, the DGTX Staking Program will pay out rewards in the Digitex stablecoin, DUSD. However, since the DUSD system is still being developed, the initial rewards for stakers will be paid out in the stablecoin USDC.
How Much Return Can Stakers Expect to Make?
If you’ve had the chance to trade on the Digitex Futures platform you’ll know that it offers one of the best trading experiences in the industry with a one-click trading ladder and customizable UI. However, the Digitex team recognizes that not all of its vibrant community is made up of traders. Many members are speculators waiting for the price of DGTX to increase, therefore:
“The introduction of DGTX Staking is designed to appeal to this core demographic who can influence the price. It offers them an additional means of making returns from their investment beyond pure price increases.”
So, just how much ROI can DGTX stakers expect to realistically make? Of course, no rock-solid predictions can be given but based on the projections in the whitepaper, quite a lot: as much as $750,000 per month by the end of 2021 thanks to the accompanying initiatives of Digitex City.
DGTX Staking Example
Assuming that 300 million DGTX are staked in the first month, and based on today’s undervalued token price of $0.035, that would be an approximate value of $10.5 million. Assuming a staking reward fund of $300,000-$500,000 USDC would equate to rewards worth between around three and five percent in the first month alone.
Of course, this is a very high rate of return and it’s likely that market forces will see the price of DGTX rise as more people want to get a share of the rewards. But even if the price rose to $0.10, the return in December could still be around 1.5% in a single month which equates to 18% per year; still an extremely attractive ROI.
This example, however, is talking about the end of 2020 before the arrival of Digitex City. Once Digitex City gets into full swing, its various zones including a poker room, virtual strip club, social network, esports betting exchange, prediction market, casino and a crypto exchange with spot, forex and futures markets will result in additional users and increased revenues.
“So we’re anticipating that the program will be paying out rewards for stakers of around $750,000 per month by the end of 2021, which is per the projections in the whitepaper.”
Closing Thoughts
The DGTX Staking Program certainly looks promising because it takes DGTX out of circulation and creates more demand. Will it be enough to take the token to the $1 price that Adam has promised? That remains to be seen, however, with a current value of $0.035, that would certainly be some stellar ROI for any buyers right now.
Building an entire ecosystem aiming to become crypto’s playground may seem like a lofty goal, but if we’ve learned one thing about this project and its laser-focused founder, it’s in it for the long haul. And, it seems, will simply not rest until it shakes up the entire crypto space.
OhNoCrypto
via https://www.ohnocrypto.com
Guest Author, Khareem Sudlow