A new contender in the cryptocurrency exchange arena is taking a decidedly different approach to platform governance. Mandarin Exchange proposes tackling the persistent problems of centralized exchang
A new contender in the cryptocurrency exchange arena is taking a decidedly different approach to platform governance. Mandarin Exchange proposes tackling the persistent problems of centralized exchanges by decentralizing the decision-making process itself. Rather than vesting authority in a small group of executives, operational choices flow through a tokenized voting system that empowers the user base.
The track record of existing exchanges speaks for itself. Regardless of regulatory status, centralized platforms consistently underperform on fundamental user expectations. Support queries languish unanswered. Security lapses recur with troubling frequency. Service uptime remains inconsistent. When troubles strike, trading accounts and balances vanish, blamed on inevitable "breaches." Trust in these platforms continues to erode.
Mandarin proposes a remedy. By deploying smart contracts alongside a democratic voting framework, the platform targets multiple pain points simultaneously. The system aims to thwart administrators from misappropriating funds, shield the exchange from unwanted regulatory interference, establish transparent asset custody safeguarded through multi-signature authorizations, and grant the community authority over which digital assets become tradeable. Importantly, the platform doesn't sacrifice the trading tools that experienced investors rely upon, preserving margin trading functionality.
The project kicked off its fundraising mechanism on August 29, 2017. The sale distributes 1,000,000 ERC20 tokens (MNT) to investors, promotional bounty participants, and development teams. The first seven days garnered $300,000 in commitments. To prevent token oversupply in early markets, allocations are conservative: 5% reserved for promotional efforts and another 5% distributed as early backer bonuses. The bulk of supply—70%—fuels the standard sale, while reserves capture the final 20%.
Token holders acquiring a minimum of 10 MNT join the platform's governance structure. Participants gain voting privileges on consequential matters: expanding the catalog of trading pairs, broadening system capabilities, adjusting existing functions (including reserve management for trading volume support), and authorizing cold storage fund movements (subject to a tentative 35% threshold). Holders accumulating over 10,000 tokens or 1% of total supply gain administrative dashboard access, viewing granular trading metrics, rate information, and infrastructure load data.
The token sale employs variable pricing mechanics. An available supply of 700,000 tokens adjusts prices based on total fundraising, capping at 70,000 ETH. Pricing becomes fixed upon the September 29 conclusion or cap achievement.
The exchange launches in October 2017 with complimentary trading to accelerate user adoption. Starting January 2018, a 0.05% fee structure takes effect, triggering the first token holder profit shares in February. An April adjustment increases fees to 0.1%. The initial platform operates 19 trading pairs spanning six digital assets—Bitcoin, Ethereum, Dash, Zcash, Litecoin, and Monero—alongside three fiat currencies: dollars, rubles, and yuan. Future roadmap items for 2018 include membership tiers, mobile applications, and card-based payment integration.
