Tacen and TXA: Bringing In The Next Generation
The purpose of this article is to clarify Tacen Inc. and the TXA token.
Tacen is a cutting-edge US-based software company with over 20 team members and is growing rapidly. At the moment, in addition to other cutting edge projects, the Tacen team is hard at work developing a new generation of crypto exchange. They are also currently designing, among other things, a merged centralized order management with decentralized settlement to create the world’s first hDEX (Hybrid-Decentralized Exchange, learn more here).
Tacen has been designing the hDEX model every day since it was founded in 2019. Trading on the hDEX means that you will: create and hold the private keys to your own Smart Wallets, collateralize money into that Smart Wallet from one of your personal wallets (such as Metamask), submit trades to the centralized orderbook, and have those trades matched by an Exchange Platform on the hDEX. The orderbook assures astonishing trade speed with a high order output.
It will be the first architecture to support CEX-like trade speeds while also protecting user privacy to the fullest and not requiring centralized custody of user funds. At this point, the question of decentralized settlement comes to the center of the architecture. This is where our role becomes clear.
It should be noted clearly that TXA and Tacen are two totally separate enterprises. TXA provides decentralized settlement services to Tacen and any other exchange desiring to build on our Settlment Layer. The TXA Ecosystem and our Decentralized Settlement Layer is a decentralized and community-operated general-purpose layer that provides settlement data services for “exchange platforms’’ that choose to build on the shared settlement layer. Matched trades are broadcast from any number of exchange platforms, such as Tacen’s future flagship exchange — to community-run Settlement Data Providers (SDPs) that exist on our Decentralized Settlement Layer.
These SDPs then in turn store trade data, publish trades onto an immutable ledger (such as DFINITY’s Internet Computer), and handle the settlement of matched trades. All code for the SDPs (and Smart Wallet smart contracts within Tacen’s Exchange ecosystem) will be open sourced, audited, and can be compiled/deployed to participate in the Decentralized Settlement Layer.
The TXA Project — Supporting Multiple Exchange Platforms
Our Decentralized Settlement Layer is entirely expandable, meaning that it can be extended through the TXA Governance Process to support any exchanges that wish to use it, and integrated through open source development to support an increasing number of exchanges. Therefore, we can potentially support multiple exchange platforms operated by any entity that wishes to apply. Tacen is only the first of many developers that will eventually be attracted to this novel hDEX architecture and contribute to its expansion and growth.
TXA’s Decentralized Settlement Layer serves as a hub for a quorum of Settlement Data Providers(currently a minimum of 10) to reach a consensus on P2P obligations to finalize settlement. SDP operators may have the freedom to charge a settlement fee for their services per trade, which leads to the further democratization of the exchange process. In other words, an SDP serves as a type of node in the Decentralized Settlement Layer that receives trading data, supports the process of trade settlement, and gives SDP operators space to take ownership in the entire operation.
Tacen is one of the first open-source contributors on the TXA Project and intends to use the TXA Decentralized Settlement Layer as the medium by which settlement is done. The entirety of the TXA Ecosystem will be transparent, open-source, and easily auditable by anyone. Openly broadcasting trades to SDPs ensures that the platform will be very easy to audit and prove that all orders are being handled in a fair and determined process.
In our vision, we will expand to encompass supporting many exchange platforms and take on a life of its own, which we fully intend to support from the start.
TXA Token & Governance
The TXA token is the ecosystem utility token for our Decentralized Settlement Layer. It may be used as a fee replacement on exchanges that use the TXA Settlement Layer or used to stake to fulfill one of the qualifiers for operating a Settlement Data Provider and participating in the network governance. This is a crucial point of interest. Holders of the TXA token in the community will have the opportunity of providing decentralized settlement services to exchanges built on our Decentralized Settlement Layer and will be able to charge a fee for doing so.
It is key to note that Tacen does NOT have a token. TXA is not Tacen’s token and it does not represent any kind of stake in Tacen. The token’s utility is entirely within the TXA Decentralized Settlement Layer and can be utilized on exchanges that are leveraging it for settlement services.
Tacen is a software company that has participated in the construction and design of a decentralized ecosystem, which utilizes our token. Tacen’s traditional organization means that ownership in Tacen is expressed through equity and stock rather than a token. TXA does not represent any kind of stake in Tacen, much the way that a token used within a decentralized ecosystem or blockchain built by Google or Microsoft would not represent an ownership stake in either of those companies.
TXA Ecosystem Governance
As our Ecosystem grows to support many more exchanges in addition to Tacen’s future flagship exchange, it will facilitate the settlement of many more digital assets such as NFTs and become much more global in nature. As it expands a decentralized governance is necessary to ensure that the incentive structure and voting systems are maintained.
The TXA Governance system — made up of TXA holders — will work closely with the TXA Foundation to fund and develop the TXA Ecosystem, and as time passes we will see Tacen take a smaller role in the open-source technology contributions. At TXA we believe that it is possible to build a global, fast, hybrid decentralized (hDEX) exchange network that is fully run by the users and truer to the goals of blockchain and Web 3.0.
Don’t forget to join Tacen’s Telegram here! You can also find our community Telegram here. We are eager to hear any questions you may have about our hDEX.
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