Digitex

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1. Introduction
   Futures markets give traders the opportunity to trade prices without the high costs
   and risks of transferring, storing and paying in full for the actual underlying
   instrument on whose price they are trading. Whether on soybeans, gold, government
   bonds or Bitcoins, futures markets are a valuable financial tool for facilitating price
   trading by reducing friction and costs.
   But despite lower costs, transaction fees are still significant on high volume, low
   profit margin futures trading strategies. They act as a massive brake on the potential
   liquidity of futures markets by converting marginally profitable strategies into
   losing strategies after commissions.
   Transaction fees are eliminated on the Digitex Futures Exchange by creating an
   Ethereum based token, called the DGTX token, and using it as the native currency of
   the exchange. All profits, losses, margin requirements and account balances are
   denominated in DGTX tokens, meaning that traders must own DGTX tokens to
   participate in the commission-free, trustless markets on Digitex. This creates
   demand for DGTX tokens from traders, enabling the exchange to replace revenue
   generation from transaction fees by creating and selling a small number of new
   DGTX tokens each year.
   Instead of penalising active traders for providing liquidity, this brand new revenue
   model imposes a small inflationary cost on all token holders on the understanding
   that commission-free and liquid markets will create demand for the DGTX token
   from traders that is greater than the inflationary cost of funding the exchange.
   Another boost to liquidity will come from the trustless nature of the Digitex Futures
   Exchange. Unlike other futures exchanges, traders on Digitex will be able to trade
   without having to trust the exchange with their money. Account balances are held
   by a decentralized, independent smart contract on the Ethereum blockchain, not by
   the exchange. The exchange informs the account balance smart contract of a
   trader’s outstanding margin liabilities and trading profits/losses, thus keeping his
   account balance up to date, but the exchange does not have physical possession of
   the funds and at no point does the exchange hold anyone’s private keys.
   New token issuance is done democratically by all DGTX token owners using
   Decentralized Governance by Blockchain. They will collectively decide how
   many new tokens to issue and when, in order to cover the operational costs of
   running the exchange. Maintaining the futures exchange is in the best interests of all
   DGTX token owners because the exchange creates demand for the DGTX token and
   gives the token its utility and value.