Safex Blue Paper

Safex Blue Paper

A Busy Investor’s Guide To The Safex Blue Paper

After months of waiting our moment is here. The highly anticipated Safex Blue Paper has been released, laying out the technical, economic, and operational plans to get the Safex Marketplace executed and used by the mass market.

 

I’ve taken the time to strip down the blue paper and put this simple guide together which highlights the key points brought out in the document.

 

However, if you do find yourself with a spare half hour I highly recommend you read the full blue paper. The order of this guide will be in the same format of the blue paper for easy cross reference.

 

Abstract

  • A purely peer-to-peer marketplace on the blockchain.
  • Comes with an embedded cryptocurrency which is anonymous
  • Utilises Proof-of-Works Mining
  • Emission curve that encourages and rewards productivity and trade
  • Secure ecosystem to protect your digital wealth

 

Safex Tokens

  • Safex Tokens are required to create accounts etc on the marketplace.
  • Only 2,147,483,647 Safex Tokens will ever exist. All tokens have been distributed and in full circulation.
  • Safex Tokens currently exist on the Bitcoin Blockchain but will migrate over to the Safex Blockchain this year (formerly known as the Chille Blockchain).

 

Migration of Safex from the Bitcoin Blockchain

  • Bitcoin based Safex Tokens will need to migrate over to the Safex Blockchain.
  • The migration will be done by passing your Bitcoin Safex Tokens through a one-way burn function and will be equally credited to you on the Safex Blockchain.
  • Migration functionality will take place in a future build of the wallet.
  • Once migrated they will no longer exist on the Bitcoin Blockchain (except for the remaining ones that have been lost or forgotten about).

 

Types of incentives (how to earn by holding Safex Tokens)

  • Two main ways of earning incentives
    • By creating an account on the marketplace
    • Performing an incentive lock in
  • Creating an account on the marketplace requires you to permanently lock-in 2 Safex Tokens. However, those two tokens will continuously attract an incentive income.
  • Performing an incentive lock in will cost 1 Safex Token and will and will attract an incentive income in proportion to their holdings relative to the Safex Token supply.
  • Incentive lock ins can be reversed, unlike creating an account.

 

Safex Cash

  • The principle currency and payment method for products and services on the marketplace, and used to pay transaction fees and network actions.
  • It’s obtained by Proof-of-Works mining, as well from locking in Safex Tokens (sometimes this is known as staking).
  • Emission of Safex Cash is adjusted according to the demand for money supply. It is designed to follow the rate of market adoption.
  • Safex Cash will also be anonymous.
  • There will be a total of 1 billion Safex Cash which will be emitted over the next 20 years.
  • 50% of the Safex Cash supply will be mined within the first 7 years.
  • The emissions will follow an s-shape curve.
  • It will be divisible up to 4 decimal places 1.0000

 

Safex Cash Airdrop

  • The airdrop is important to seed the network with activity and to cover fees for the initialisation of the marketplace.
  • 1 percent of all Safex Cash will be pre-mined and airdropped for the initial supply – 10,000,000 Safex Cash in total.
  • 50% of the airdrop will go towards Safex Token holders – 5,000,000 Safex Cash.
    • This calculates to 0.0023 Safex Cash for every 1 Safex Token locked in, assuming 100% of all supply has been converted to the Safex Blockchain.
  • The other half will be assigned to the Safex Development fund – 5,000,000 Safex Cash.
  • The majority of the Development Fund will be used for marketing and advertising purpose.

 

Proof-of-Works Mining

  • Safex Cash will be distributed via Egalitarian Proof of Mining Algorithm – based on the CryptoNight algorithm.
  • Safex Cash will be ASIC proof and is friendlier towards GPU mining. This allows ordinary people with ordinary hardware to mine Safex Cash.
  • Adopting this mining method helps decentralise the network and make the acquisition of Safex Cash more evenly distributed.
  • Mining emission curve follows the marketplace adoption model.

 

Marketplace

This section is a little more complex and it’s recommended you read the full blue paper to fully appreciate.

  • Fully built on the blockchain – no need for trusted 3rd parties to handle transactions.
  • Two types of markets – Void Market, and Title Market.
    • Void Market sales aren’t listed within the exchange directly and are accessed via direct links. Basic listing with no category and free-formed arbitrary parameters.
    • Title Market sales are listed within a curated marketplace category. The category is curated/managed by a Title Owner who sets the conditions for the category.
  • Title Markets are designed to keep listings within a category order – for example, Oranges and Bananas will be listed in the fruit section.
  • Each category or title has a curator who approves listings within their section.
  • To create a Title or Category you will need to pay 200 Safex Tokens. You can earn a small fee from being a Title/Category curator.
  • You can fully encrypt your marketplace listings so only visitors with the correct decryption key can view and interact.
  • A flat fee of 5% will be applied to each sale.

 

Accounts

  • A basic Safex Account is required to buy and sell on the marketplace.
  • An account consists of a username, avatar, website URL, unique ID and an array of PGP keys.
  • Accounts are required for giving and receiving reputation.
  • The cost of creating a basic account is 2 Safex Tokens.
  • A user can fully encrypt their listings and share the decryption key with only those who they want to.

 

Treasury

  • 0.02% of the trade fee will be credited towards a treasury fund for future development and maintenance.
  • The community appointed Chief Architect could allocate 50% of the finances based on a monthly balance average without approval of the community.
  • All expenses must be a proposal and should be put towards critical infrastructure.
  • Anyone with an account could make an expense proposal and anyone with Safex Tokens before the proposal was formed can cast a vote accordingly.
  • The majority of participants will determine the outcome of the proposal.

 

Blockchain Technology

  • Safex Blockchain will be custom built specific for the Safex Marketplace.
  • The Safex Blockchain employs a dynamically adjusting block size limitation which increases based on adoption and demand.
  • Anyone can embed a PGP Key on the Safex Blockchain for a fee. This means messages etc can also be encrypted.
  • The Safex Blockchain utilises Ring Confidential Transactions to ensure full privacy and zero traceability.
  • Neither the buyer or the seller will be able to see each other’s balance or spending habits.