NVO is a crowdsale project aiming to facilitate the production of a decentralized modular exchange. The team behind the project will build the platform on top of the Safenetwork created by the Maidsafe team. The decentralized exchange will distribute its profits from trading fees to investors who will be collected during the ICO phase, which begins on May 21st.
Decentralized exchanges are inherently more secure and cheaper to use than traditional exchanges. The reason is because there is no third party which holds the assets. By automating the process of fund management, order matching, and the exchange of assets, the entity is able to cut overhead costs such as payroll and server hosting. Furthermore, NVO took it a step further by proposing that the exchange’s investors will get paid in dividends of the platforms profits.
The NVO exchange will have a competitive 0.2% fee on every executed order for each user, resulting in a combined 0.4% fee per trade. The platform will have NVOS tokens which will be distributed to investors participating in the ICO. There will be a total of 15,000 NVO tokens in circulation, meaning that the price per token will be decided after the initial offering period.
The difference between NVO and NVOS might be confusing at first. However, the difference is simple, NVO token holders represent the investors, and the more NVO tokens one holds the higher share one has of the exchange. Once the project starts generating money, the fees will be distributed between the NVO token holders, and the currency that will be paid to the investors will be NVOS – or NVO shares. The NVOS tokens will be pegged to a value of $0.99, and distributed to investors appropriately.
The reason behind this seemingly confusing distribution method, is to avoid certain legal roadblocks when paying dividends to investors. According to nemgun – one of NVO’s representatives:
In order to protect NVO and the investors, the NVO team decided to create the NVOS who’s value will be fixed at 0.99$. On the legal plan, as the price of NVOS will be lower then 1$, it’s processing will be considered as a gift, which will keep it legal, like faucets.
By using this legal loophole, the NVO exchange is able to avoid KYC / AML requirements, which will result in users not having to provide personal identifying information. This will keep the exchange truly decentralized and anonymous.
Currently, the team has provided a demo of a wallet software which connects to the NVO network and supports three cryptocurrencies – Bitcoin, Ethereum, and Ripple. It can be downloaded from nvo.io and is available for Windows, Mac OS, and Linux.
About the Team
The team behind the project includes Yanni Bragui – Lead Developer and CTO, and Ton Bi – CEO and cofounder. Yanni has over 14 years experience in software engineering. He is currently the head of development at Veserus, a cryptocurrency exchange. Ton Bi has 5 years experience in growth hacking for startups. He was previously the project manager for Newnote Financial, a Bitcoin public company in Canada.
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