Taking Bitcoin as an example, the use of scripting language is restricted, so we can't use the trading script of Bitcoin to create the trading announcement data of Bitstock X.
Therefore, a set of transaction types with seven reporting conditions is defined:
Signed statement
When outputting transaction data, the holder is allowed to sign for the announcement.
This is like a standard bitcoin transaction output script.
Declare with the signature of n in m
When outputting transaction data, it is allowed to publish n signatures among m holders.
This is like the multi-signature transaction output of Bitcoin.
Announce by paying the bill
Under the condition that a specific asset has been paid to the buyer at a specified price, the output is allowed to perform payment.
As long as the bill containing changes is generated at the same time, the bill can be partially realized.
Only when a new block is generated according to the market summary algorithm can it be summarized in other explicit ways, such as the announcement of buying, the announcement of multiple positions, and the trading output of closing positions.
The transaction output of the bill payment announcement can also be paid by the buyer's signature, in which case the buyer can cancel the pending order.
Make more announcements
When someone shorts at a certain price (announces liquidation), such transactions are allowed to output announcements.
Short positions must match the trading output published by another new BitUSD with the same amount.
The transaction output can also be paid by the signature of its holder, in which case, the holder can cancel the pending order.
Announce by closing the position
It is allowed to charge a fee for endorsement of short positions from mortgage loans, which should be proportional to the BitUSD destroyed in the same transaction.
BitUSD is destroyed by including it in the transaction input data instead of the transaction output data.
The output of this transaction can only be compensated by the holder, unless the output is used to be included in the pending order summary algorithm as part of the extra margin.
Execute declarations through options.
Before the set date, if the option buyer pays the specified amount to the option seller, the transaction output is allowed to pay.
After the set date, the trading output can only be announced by the option seller.
Declare by password
Used for cross-chain transactions, allowing the transaction output to perform payment in the following two situations: providing two sets of signatures or a set of signatures and a set of passwords.
The transaction fee is set to the price of BTSX corresponding to each byte of data to be paid.
Simply put, the transaction fee is the fee charged by the market for executing the order summary algorithm.
The exact transaction cost varies according to the amount of each pending order.
Regarding the specific transaction costs, we plan to operate in Bitstock X for a period of time and obtain some historical data before publishing it.
For a more detailed explanation, please refer to the "sequence and algorithm" section later.
Establish trustee destruction ratio to realize profit.
Bitstock X regards Bitstock X as a distributed autonomous company (DAC) and pursues profits.
Therefore, it should earn profits for shareholders.
The realization of profit depends not only on the increase of stock market value, but also on the destruction of transaction costs by setting the destruction ratio.
From an economic point of view, reducing the supply of BTSX is like distributing the transaction cost to all BTSX shareholders in proportion in the form of dividends.
Although Bitstock X will show the percentage of the user's BTSX balance in the total circulation, it will be seen that the balance will gradually increase with the progress of block production.
When users spend BTSX, before the transaction occurs, the user interface converts the displayed percentage back to the real number of shares, and then sends it to the blockchain.
Bit x uses a non-traditional hanging list contraction algorithm.
The traditional waiting list collection algorithm chooses to provide the minimum quantity required by the buyer, sometimes more, while the matching algorithm of bit stock X will always provide the exact quantity required by the buyer.
If the highest buying price is greater than the lowest selling price-the difference will be charged by the system as a handling fee.
There is no essential difference between the buyer and the seller of Bitstock X, because there is no difference between those who buy BTSX in dollars and those who buy BTSX in dollars.
Instead of using the same price, the transactions between the two parties are concluded at their respective designated prices.
The difference will be retained by the system as a handling fee.
Simplex sum algorithm for bit string suspension
The reason why this algorithm is adopted is to punish those who want to create a large number of pending orders to manipulate the unilateral market, because under this algorithm, the number of handling fees will increase in proportion to the number of pending orders.
This design is to enhance value-based investment rather than pure technology flow transaction.
We expect this to reduce market volatility and liquidity, because disruptive transactions have been removed.
Market participants should not complain that their pending orders can be accurately closed, so that everyone will rationally place orders in the way they think is reasonable.
Before opening the market and creating the first bit asset, the minimum market depth should be established at the price of * * * *.
The relevant rules are being evaluated, and the current design is as follows:
Match all empty orders and multiple orders-this will eliminate overlapping pending orders and establish the initial buy/sell distribution order.
Accounting reference price–Calculate the remaining maximum buying price and minimum selling price to obtain the average value.
Verify the market depth within the range of +/- 15% of the reference price-when the trading amount exceeds the minimum critical value, it is called the opening depth, and the transaction will be allowed and officially started.
By triggering market demand or buying all pending orders, it may trigger market manipulation attacks and destroy the market.
Therefore, when the market depth within the range of +/- 15% of the reference price is lower than the operating depth, the transaction will be suspended.
If the price fluctuation exceeds 1% in a trading round, the trading will be suspended for 5 minutes.
These protective measures avoid the rapid price fluctuation caused by market manipulation, and give traders the opportunity to increase collateral or new pending orders to stabilize prices.