# MDEX LightPaper

**MDEX**

**An AMM-based decentralized transaction protocol that integrates DEX, IMO & DAO**

## 1. Overview

MDEX.COM is a decentralized platform for cross-chain transactions and deployed on BSC, HECO and Ethereum. Its transaction volume and TVL are at the top of the DEX rankings by CoinMarketCap and CoinGecko. MDEX aims to integrate the advantages of multiple chains to build a high-performance compound DEX ecology. The dual mining mechanism of liquidity mining and transaction mining provides participants with maximum rewards. MDEX is now available on Heco and BSC, and users can use MDEX Bridge to complete cross-chain transactions on Heco, Ethereum and BSC.

Committed to building a DeFi platform integrating DEX, IMO and DAO, MDEX provides one-stop liquidity services for high-quality assets and brings users a safe, reliable, diversified and cost-effective transaction experience. MDEX.COM provides fast, diverse and economical crypto transaction services.&#x20;

### 1.1 Project Vision&#x20;

MDEX aims to integrate the advantages of multiple chains to create a high-performance compound DEX ecology. The dual mining mechanism of liquidity mining and transaction mining provides participants with maximum rewards; the transaction fee for MDX repurchase and burn enables it to achieve a closed self-driven ecological loop for value capture.

MDEX strives to provide one-stop liquidity services for more high-quality assets and brings users a safe, reliable, diversified and cost-effective transaction experience.&#x20;

MDEX will build a new business ecology with full application scenarios covered and various chains connected. It will continue to expand application scenarios and lower the usage threshold to provide global users with more convenient, high-performance, low-cost and non-differentiated crypto-asset financial services, thereby realizing fair pricing of assets, instant settlement of transactions and free flow of values.

### 1.2 Market Demand

The DeFi boom swept through the blockchain industry in 2020 and continued strong performance in 2021, proving itself as one of the largest blockchain applications launched. The evolution of the TVL in the DeFi market is direct evidence. Although the growth rate of the overall DeFi TVL slowed down in October and November 2020. But it skyrocketed and reached a peak of $100 billion at the beginning of 2021.

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_9_Gr9od4TjAe2CEO%2F-Md_9dYGS10iZmbtXyC9%2F1.png?alt=media\&token=2226b3b2-62df-4639-8e25-4a07296579de)

As of May 30 2021, the TVL of DeFi had amounted to $70 billion, with the daily transaction volume of the three leading DEX projects being:

Uniswap: $968 million

Sushiswap: $576 million

MDEX: $1.361 billion

We thus can see that DeFi is a market with great potential. The daily transaction volume can be as much as trillions of dollars.

#### &#x20;

### 1.3 Project Solution&#x20;

MDEX is committed to building a DeFi platform that integrates DEX, IMO, and DAO to provide one-stop liquidity services for high-quality assets and bring users a more secure, trustworthy, diverse, and cost-effective transaction experience. Since the launch on January 19 2021, we have been continuously seeking better protocols to build an ecology with lower costs, higher efficiency and the best user experience. Amid the market with fierce competition and frequent reiteration, the MDEX team has been reminding itself of the nature of finance and striving to stay rational. Currently, MDEX provides transactions of all types of tokens and thereby fulfills users' basic needs. All transactions initiated can be confirmed in basically 3 seconds. Meanwhile, MDEX attaches importance to both decentralized governance and efficiency. The transaction fee is as low as $0.1 cents, which is compensated by transaction mining, making the transaction free. The increase in transaction depth reduces slippage as low as 0.1%, a transaction experience that centralized exchanges cannot provide for most of the time.

## 2. The tokenomics and governance mechanism

### 2.1 Tokenomics

The total supply of MDEX's platform token MDX is about 1 .06billion, of which 10% is used as team reward for team operation, technical research and development, etc.. This section will be unlocked 1 month after the project launches and the unlocking lasts for 24  months by the smart contract. 7% is used to reward early investors who bring more funds and resources to MDEX's development; 3% is used for marketing and brand building. Both of them will be unlocked in twelve months after the project launches. The remaining 49% and 31% are used for liquidity mining and transaction mining on HECO and BSC respectively.

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_w0NQKdyXsyeZwhdr%2F-Md_w83kljLBZhLw12LM%2F%E5%BE%AE%E4%BF%A1%E5%9B%BE%E7%89%87_20210702143510.png?alt=media\&token=2d0d5011-6b62-4ee1-adaf-d8e1091c1448)

* _49%_  Liquidity mining and transaction mining (HECO)
* _31%_ Liquidity mining and transaction mining (BSC)
* _10%_ Team rewards    (unlocked in 1 month after the project launch and lasts for 2 years）
* _7%_ Early investors  (unlocked upon project launches and lasts for 12 months）
* _3%_ Marketing & operation  (unlocked upon project launches and lasts for 12 months）

### 2.2 Repurchase and burn&#x20;

#### 2.2.1 Boardroom repurchase mechanism&#x20;

MDEX implemented the boardroom repurchase and burn program on February 06, 2021. The trasaction fee is 0.3% of the transaction volume, among which, 0.1% will be used to promote the development of ecological projects, 0.14% will be used to reward the users who pledge MDX in boardroom, and 0.06% will be used to repurchase and destroy MDX to maintain deflation of the token.&#x20;

Repurchase and burn mechanism:&#x20;

MDEX will inject a fixed proportion of transaction fee income into the repurchase pool on a daily basis.  When the repurchase price (72 hours MDX average price) is triggered, the smart contract will automatically execute the repurchase and burn. Otherwise, the funds will continue to accumulate in the repurchase pool.&#x20;

#### 2.2.2 Burning Black Hole mechanism&#x20;

MDX, as a governance token, is one of the important ecological segments in MDEX's strategic deployment, and the team is continuously expanding its application scenarios and building up a complete value system. This transaction fee for MDX repurchase and burn materializes a closed and self-driven loop for value capture. Currently, MDEX spends thousands of dollars on the repurchase and burn every day, which effectively boosts the confidence of community users in MDX.

As a fun and interactional repurchase game, Burning Black Hole is open and beneficial to all MDX holders who invest MDX in the burning pool and receive a participation number. If the number matches to the pre-announced winning number, the user will get rewards. To ensure the fairness and transparency of the game, the MDEX team has devised a calculation system to guarantee that the participation numbers obtained by users each time are random, verifiable, and cannot be cheated. Every transaction is recorded in the block browser, and users can check the transaction hash, timestamp, block number and participation number. At present, the Burning Black Hole has delivered encouraging results, indicating that it has to some extent improved the participation of MDX token holders in the repurchase and the confidence of users in holding MDX.

### 2.3 Incentives

#### 2.3.1 Boardroom single token staking incentive

MDEX supports single token staking. Users can stake MDX in the Boardroom to mine more MDX, and in the specified period, it also allows users staking MDX to mine other platform tokens, such as HT, BNB.

#### 2.3.2 Transaction mining

The rewards of transaction mining are to subsidize users with transaction needs. Centralized exchange transactions require a 0.2% transaction fee, while transactions on MDEX cost as low as $0.1 cents, which is further compensated by transaction mining income, making transactions on MDEX free.

#### 2.3.3 Liquidity mining LP incentive&#x20;

In the AMM mechanism, the transaction depth of the pool relies on the liquidity providers (LPs). MDEX offers generous mining incentives for LPs. As of June 30, 2021, MDEX transaction fee subsidies for users had exceeded $455 million, making MDEX a project with the lowest transaction fees; cumulative LP rewards had amounted to be $350 million, making MDEX a project with the highest LP yield. The lucrative platform incentives are to reward MDEX users' support for the project.

### 2.4 MDEX Ecology Fund

#### 2.4.1 Vision of the MDEX Ecology Fund

The core objective of the MDEX Ecology Fund is to promote the development of the blockchain and DeFi ecosystem, as well as to expand the MDEX ecosystem and manage MDEX's resources.

We believe that the establishment of the Eco Fund will exert a long-term influence on the development of MDEX as well as the entire blockchain sector. The Fund provides a wide range of supports, such as blockchain underlying infrastructure, and ecosystem components, for DeFi projects that contribute to the long-term development of decentralized applications.

For projects that receive investment from the Fund, MDEX will also provide support in other forms, ranging from ecological resources, technical support, market operation resource, to security audit, etc. In general, MDEX will assist the projects to expand their ecological resources in all possible ways.&#x20;

#### 2.4.2 The way MDEX promotes the development of the Ecology Fund&#x20;

MDEX team is in charge of promoting the development of MDEX Eco-Fund, which includes project screening, project analysis, ecological access and project promotion.  In the future, when MDEX starts the DAO mechanism, the MDEX Eco Fund may be managed through DAO.

MDEX ecological fund has also invested in many star quality projects, such as O3, Coinwind, Westarter, Booster, Converter, Syn, Open Leverage, etc., all of which will continue their journey in MDEX ecology and strive to be leading DeFi projects.  MDEX always believes that the market and users are fair judges for the product quality: when the products meet demands, the success will come naturally. Since the kick-off of the Fund, MDEX has successfully demonstrated its investment superiority. In the future, MDEX will further explore the potential of the fund and enables its function from trading, staking, lending, etc., to build a complete MDEX DeFi ecology.

## **3.** **Practical mech** **anism**

### **3.1 AMM Automatic Market Maker Mechanism**

AMM is the Automatic Market Maker algorithm. It can be conceived as a primary , automated market maker, which provides quotes between two assets at any time based on a simple pricing algorithm. If AMM has some of x and y tokens, it sets the price for each transaction. The product of the final quantities of x and y it holds equals a constant k, forming the equation x \* y = k. Next, we will take an examples to describe the correctness of the AMM algorithm. MDEX will introduce a liquidity optimization protocol to achieve centralized liquidity on AMM. In the context of the description of AMM in Section 3.1.1, suppose that Alice buys a MDX and b BTC in a single transaction, to provide liquidity in the range (0, infinity).Bob buys a' MDX and b' BTC, where a \*b >> a' \* b'– i.e.Alice invests much more than Bob. Bob expects BTC to fluctuate around ±10,000 in the future, and hopes to earn as much as Alice.

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_9_Gr9od4TjAe2CEO%2F-Md_9rR5WsnZyTeTan7P%2F3.png?alt=media\&token=0c597b2b-96fb-49ae-aacf-aa1fc6f57a0d)

Here, X is BTC, Y is MDX; point a corresponds to the price of 20,000, point b corresponds to 25000, and c is the current market price of 22,500.x\_real is Bob’s b'BTC, while y\_real is a'MDX.

Mathematically, denoting the intermediate curve expression as x \* y = D (according to the AMM model), the following formulas exist:

&#x20;

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_C3Xfkte3RqAEwqrA%2F4.png?alt=media\&token=31cf872a-5303-4a31-a7eb-dddea9fc2e50)

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_CHXaK3rYd6M7Ky25%2F5.png?alt=media\&token=5999a19e-0d74-47ac-b1e2-b20aa87b6a38)

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_FjlEtrfVWV-UggF6%2F6.png?alt=media\&token=3469310a-74a9-4c2a-8121-9eac9fc88044)

Bob determines that x\_real = b' and y\_real = a', so:

&#x20;

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_FoXUnbNxakXvoZ9O%2F7.png?alt=media\&token=45a48844-3bf9-46c5-b754-bd156abfef73)

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_FrY6wMYBriyYxHNr%2F8.png?alt=media\&token=665ba9f1-35c5-45d9-b04f-1c8bae9dadaa)

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_FvbFJKQymjcpUa7p%2F9.png?alt=media\&token=3411658b-ba77-4420-bd21-a58c08210011)

Furthermore, because:

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_GL9qaNWEof43dbK2%2F15.png?alt=media\&token=eee4de07-cf71-4c75-8828-c567a1307052)

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_G7mt1y70T_taaArp%2F11.png?alt=media\&token=c971db93-19e8-4cc9-bc8a-f337c4bc3cc9)

Therefore:

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_Gd2uBrYV5zyINSVB%2F12.png?alt=media\&token=74319a7e-9b15-4872-a838-1725bca6a9fa)

Solving the above equation:

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_H5fVe8Q86LPsNteD%2F16.png?alt=media\&token=c477e732-ef5d-4e05-8c7a-d7978af688cc)

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_Go4Nn8I1qyos3kB2%2F13.png?alt=media\&token=314382d1-1983-4f30-add1-61fc655e2121)

Finally, we get:

![](https://2077148690-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZ2IxeCguco8dlwzLo6%2F-Md_Bh-L4VVnTdT7Pegc%2F-Md_HB1kj0SFysSqUj7p%2F14.png?alt=media\&token=069cdc39-104f-4a28-a862-fcce69fac6ad)

The virtual curve (D value) earned by Bob is almost identical to Alice’s.

In addition, k = a \* b. When the market price moves upward toward the MDX, since the liquidity pool needs someone to arbitrage the price, the arbitrageur finds that one BTC buys fewer MDX in the market than in the liquidity pool, and thus exchanges BTC in the liquidity pool for more MDX than he could get in the market. The quantities of MDX and BTC in the pool after the exchange are denoted as a'and b', respectively.

Thus, based on the AMM market maker system, the following equation should apply: a \* b = a' \* b'.

In principle, this algorithm verifies the feasibility of the AMM, but in fact BTC fluctuates within a local price range for a long period of time. This kind of selfless provision of liquidity for the entire range greatly reduces the efficiency of capital utilization.

As MDEX gradually becomes a mature financial market, it will always pursue the principle of no arbitrage and the improvement of capital utilization. Problems may occur by pure application of the AMM mechanism: if the proportion of orders in the trading pool is too large, it could cause excessive transaction slippage, and the listed price seriously deviates from the actual price. Therefore, MDEX has optimized the AMM mechanism. MDEX’s work plan can be summarized as constrained AMM + a fast arbitrage plan. If a single transaction in the market accounts for more than a certain percentage of the transaction pool (for example 15%), MDEX restricts this transaction and allows the user to trade in batches. This constrained AMM mechanism alleviates losses due to excessive slippage, and also provides a sufficient time interval for specialists to smooth out the spread, ensuring smooth price movement.

### **3.2 Multi-chain deployment**

MDEX will eventually support ETH (layer 2 network), OKExChain, DOT, NEAR, and other public chains, creating a full ecosystem transaction protocol to realize asset interoperability. This cross-chain protocol will realize asset exchange by one-click, allowing users to experience highly efficient, low-cost cross-chain transactions.

### **3.3 Security**

MDEX has now passed Certik, SlowMist, and Fairyproof security audits. The fully open and transparent MDEX decentralized cross-chain transaction protocol guarantees that all digital assets are recorded on the blockchain and stored in users’ wallet addresses. Unless the private key is missing, no one can steal or tamper with users' assets, creating sacred and inviolable personal property in the true sense.

**MDEX contracts (HECO)**

* [MDX token contracts (heco)](https://hecoinfo.com/address/0x25D2e80cB6B86881Fd7e07dd263Fb79f4AbE033c#code)
* [MDX pledging and mining contracts (heco)](https://hecoinfo.com/address/0xFB03e11D93632D97a8981158A632Dd5986F5E909#code)
* [MDX transactions and mining (heco)](https://hecoinfo.com/address/0x7373c42502874C88954bDd6D50b53061F018422e#code)
* [Repurchase and burn contracts (heco)](https://hecoinfo.com/address/0x46900C0c18ace98bAAB81561B9906Dc93287910C#code)
* [Burn contracts](https://hecoinfo.com/address/0x5FEF5CC8AE1E42c5299AAe05a2EFfA1634BA5E77#code)

**MDEX  contracts (BSC)**

* [MDX token contracts (bsc)](https://bscscan.com/address/0x9C65AB58d8d978DB963e63f2bfB7121627e3a739#code)
* [MDX pledging and mining contracts (bsc)](https://bscscan.com/address/0xc48FE252Aa631017dF253578B1405ea399728A50#code)
* [MDX transactions and mining (bsc)](https://bscscan.com/address/0x782395303692aBeD877d2737Aa7982345eB44c11#code)
* [Repurchase and burn contracts (bsc)](https://bscscan.com/address/0x1308AF6853B449d7604C7544cb2170248527110F#code)
* [Burn contracts](https://bscscan.com/address/0x5FEF5CC8AE1E42c5299AAe05a2EFfA1634BA5E77#code)

## **4.** **Project history**

### **4.1 First Launched on Huobi Eco Chain (HECO)**

On January 6, 2021, MDEX launched on Huobi eco chain (HECO). On January 19, “dual mining” (i.e. transaction mining and liquidity mining) was launched. The introduction of mining rewards attracts abundant liquidity to MDEX, which reduces slippage during transactions. The two form a virtuous cycle, which continuously promotes growth and development of MDEX. There is almost no difference in terms of user experience between a low-spread DEX and a centralized trading platform.

### **4.2 Boardroom Launched**

The MDEX launched Boardroom in order to give MDX holders opportunities for long-term profit and allow them to participate in ecosystem governance, as well as to achieve true decentralized governance. Regarding the repurchase and burn mechanism, MDEX injects corresponding proportions of daily platform income into the fund pool for repurchase. When the repurchase price (72-hour average MDX price) is triggered, the smart contract automatically executes the repurchase and destroys the MDX. If it is not triggered, the MDX continues to accumulate in the repurchase fund pool.

### **4.3 Binance Smart Chain BSC**

In April 2021, MDEX announced the integration of BSC. From the Huobi eco chain cross-chain to the Binance smart chain, MDEX expanded its scope of services. With the help of DeFi development opportunities, it metamorphize from technological and market upgrades to ecosystem upgrades. One month after MDEX launched on BSC, its total value locked (TVL) already reached 3rd in the BSC ecosystem. MDEX’s 24h average transaction volume was the highest in the past months among BSC ecosystem DEXs. Within one month after launch, BSC ecosystem mining rewards alone approached US$ 200 million, equivalent to 3,571 BTC.

### **4.4 IMO Support**

On May 15, 2021, MDEX officially enabled IMO activity statements, igniting user enthusiasm. IMO means Initial MDEX Offering. Building on MDEX’s initial decentralized online exchange mechanism, IMO V1 implements a basic open exchange function (excess formula), which provides ample liquidity for projects and allows users to participate more fairly. All users of the public exchange function can participate. Assets have exchange rules and exchange times, and users can request to exchange shares within the specified time. After the exchange, the tokens are allocated according to the exchange ratio. The funds remaining after deducting the exchange amount are returned to the original address. Users can use MDX or MDEX platform LPs to complete the exchange.

### **4.5 Repurchase plan**

On May 25, 2021, MDEX launched an innovative repurchase plan – Burning black hole. This mechanism has not only somewhat increased participation of MDX holders in repurchasing, but also further reduced circulation of MDX, thereby improving pricestability.&#x20;

### **4.6 Halving**

The first MDX halving on June 5, after 138 days of operation, reduced new daily supply from 4.6 million to 2.3 million MDX. Since the first production cut, the production cut cycle has been shortened to 3 months, i.e. the deflation process has been greatly accelerated. After the 20thproduction cut (every 90 days) on February 9, 2026, total MDX circulation will be below 458 million. Coupled with repurchase and burn, MDX’s economic model will form strong deflationary expectations, providing support for its long-term currency pricestability.

## **5.** **Project Plan**

### **5.1 The Ultimate Transaction Experience**

#### 5.1.1 Launch liquidity optimization agreements to greatly improve capital utilization efficiency

MDEX will optimize the existing AMM mechanism to add functions such as liquidity aggregation, range orders, and limit orders.At present, few users are brave enough to use idle tokens for liquidity mining because of concerns about price fluctuations. In the future, however, losses from short-term movements will be avoided to the extent possible, realizing the important functions of a DEX such as liquidity aggregation and range and limit orders. Currently, DEX miners have to bear losses caused by short-term fluctuations, which is why many token holders are unwilling to put their holdings in liquidity pools. As a DEX project, MDEX has been steadily engaged in technological and business model innovation, strengthening the business model after the technology is stable, and introducing technological innovations after the model is clear,creating a virtuous cycle in order to bring users the best DEX experience.

#### 5.1.2 Cross-chain transaction function for multi-chain value transfer

MDEX will build cross-chain infrastructure connecting multiple heterogeneous blockchain networks to realize asset exchange between them. It will provide more convenient and lower cost asset circulation solutions for ETH, HECO, BSC, Polygon, and other assets.&#x20;

#### 5.1.3 Innovative trading interface and order book to upgrade user trading experience

MDEX will provide a market display page and order book trading functions that are in line with user habits, along with a more convenient and richer pending order strategy to create an operating experience comparable to that of a centralized exchange.

### **5.2 Bigger Ecosystem**

Transactionsare the core of DeFi value, but by no means the end. MDEX will expand the landscape horizontally. Building more innovative products is an important way to create more value. Next, MDEX will do the following.&#x20;

#### 5.2.1 Release unlimited liquidity

MDEX will continue to support multiple methods such as over-collateralization, liquidity certificate LP pledging, and Boardroom MDX pledging to mint MUSD stablecoins. It will also provide rich application scenarios and liquidity rewards for MUSD, allowing users to earn substantial profits while greatly improving the efficiency of capital utilization.

#### 5.2.2 One-stop solution for derivatives

Building on its original products, MDEX will take advantage of DeFi Lego recombination and gradually launch innovative derivatives such as leveraged trading, option trading, and prediction markets, providing users with richer, more convenient and more secure products, and creating more benefits for MDX holders.

#### 5.2.3 All-new DeFi ecosystem

We aim for a prosperous ecosystem with more partners and developers, and therefore will give a series of support programs including IMO, the MDEX Foundation, and M-Accelerator high priority. The MDEX Foundation will provide comprehensive support such as funding, technology, and ecosystem cooperation to developers and innovative projects around the world. We will carefully review each application and provide feedback within 24 hours.

### **5.3 More Returns**&#x20;

MDX holders will always be MDEX’s most loyal builders. MDX will always be the only core token of the MDEX ecosystem, and the only beneficiary of all MDEX growth dividends. The next version of MDEX will do the following.

#### 5.3.1  DAO plan to return power to the community

MDEX will activate an election plan for board members. Through MDX voting, 21 super directors will be elected. Board members will enjoy the power to initiate proposals and obtain highdividends. Users will vote in MDX to participate in governance and obtain corresponding rewards.

#### 5.3.2 A long-term lock-up plan for core supporters to earn rich returns

In order to encourage MDX holders who are optimistic about MDEX’slong-term development, we will start a long-term lock-up plan and invest more funds and rights for rewards.

#### 5.3.3 More product revenue for shared MDEX growth dividends

Transaction fees will only be part of MDEX’s future revenue, but we will use rewards/repurchase and burn to repay MDX holders for all revenue received.
