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, 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,” we allow certain users to mint their very own soulbound token (SBT) called 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 represents ownership in our exchange and can be staked for governance and treasury management rights in the Phemex DAO. Tokens can be pre-mined as well as obtained through the 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.