# Overview

Phemex is pioneering a semi-centralized platform model by infusing decentralized mechanisms with existing CEX operations. We have constructed our own transparent and holistic Web 3.0 world of Phemexia. It will arise together with the [**Phemex DAO**](https://phemex.gitbook.io/phemex-web3-whitepaper/features/phemex-dao), which implements a decentralized governance structure to empower a growing group of builders, partners, and stakeholders to make key decisions on platform activity. 

Taking inspiration from Vitalik Buterin’s concept of [non-transferable “soulbound tokens,”](https://vitalik.ca/general/2022/01/26/soulbound.html) we allow certain users to mint their very own soulbound token (SBT) called [**Phemex Soul Pass**](https://phemex.gitbook.io/phemex-web3-whitepaper/features/phemex-soul-pass), that will function as a permissionless passport to special privileges within the Phemex Web 3.0 ecosystem. One innovative privilege is our platform’s own cryptocurrency set to be launched in Q3 of 2023. The [**Phemex Token**](https://phemex.gitbook.io/phemex-web3-whitepaper/features/phemex-token) represents ownership in our exchange and can be staked for governance and treasury management rights in the Phemex DAO. Tokens can be [**pre-mined**](https://phemex.gitbook.io/phemex-web3-whitepaper/incentives/trading-rewards/xpt-pre-mining) as well as obtained through the [**Phemex Collaborator Program**](https://phemex.gitbook.io/phemex-web3-whitepaper/incentives/phemex-collaborator-program). 

**This project allows us to harmonize the best aspects of CeFi and DeFi, empowering decentralized decision-making with centralized efficiency of execution.** As a top-ranking CEX, Phemex already possesses the advantages of flexible on- and off-ramps, user-friendly UX, and deep liquidity. By innovating the Phemex Soul Pass SBT to build a transparent Web3 reputation system, we also unlock DeFi opportunities. Such possibilities include trustworthy DAO management, AMM liquidity provider integration, decentralized credit scores, and a lending protocol that supports uncollateralized loans.

The blockchain space is constantly developing. Cryptocurrencies initially arose to address financial use-cases, but Phemex believes that the ultimate evolution of Web 3.0 must extend beyond financialization. That’s why we’re taking steps to advance other elements of a decentralized society including authentic digital identity, trust-building, and permission-less collaboration.