DutchX is a decentralized trading protocol invented, designed, and built by Gnosis that all developers are invited to build on. It’s a set of smart contracts and a backbone structure for both interfaces and integrations utilizing the prediction market protocol.
In the first version of the DutchX smart contracts, Gnosis relinquished its “auctioneer powers.” Which meant that neither Gnosis nor anyone else, had the ability to alter the parameters or logic of the contract. Gnosis did this to ensure that while working on a better governance solution, DutchX remained outside of central control.
The updated set of DutchX smart contracts have been subjected to lengthy internal peer reviews and also to an external audit by Solidified. No bugs were found in the audit. Gnosis also has an ongoing bug bounty (as of now, no bugs have been reported) that will run on the revised DutchX smart contracts.
DutchX was designed to operate as a fully-decentralized trading protocol, meaning that changes to the DutchX protocol must also be decided in a decentralized fashion…
Changes from DutchX 1.0 to 2.0
Below is an overview of the changes made from the DutchX 1.0 to the DutchX 2.0 smart contracts:
The decision from Gnosis to allow smart contract upgrades (via a proxy contract) has clear advantages and disadvantages. The main disadvantage of upgradeability is that it raises significant security concerns by adding another attack vector; changes to the core parameters could prove malicious. Yet, advocates of upgradeability suggest that it allows for bug repairs in contract logic, adjustments to changing regulatory frameworks, or general improvements to the protocol.
The community governance of the DutchX Protocol by the dxDAO will soon launch after a slight delay. It is jointly set up by Gnosis and DAOstack, eventually, both teams will step back and let the community take over when the dxDAO has officially launched.
With upgradability plus dxDAO governance, the DutchX protocol becomes self-sustainable and adaptable to a changing ecosystem and to regulatory frameworks.
Vote staking for dxDAO began this week and will run until it’s launch on April 4th, 2019.
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