JOYSO (JOY) ICO Review – ICO Token News
What is JOYSO?
JOYSO is a hybrid exchange (HEX) that provides traders with the features and speed of a centralized exchange and the security and privacy of a decentralized network. It combines centralized and decentralized designs for efficient off-chain order matching. The exchange ensures the privacy and security of transactions through smart contracts. The user has to deposit in the smart contract and send an order to JOYSO where it will be matched. On finding the match, the user’s signature is verified by the smart contract and the transaction is published on the blockchain (similar to other tokens such as Cibus, THEKEY, TrustaBit, BunnyToken, Play2Live, Apollo, AQwire).
How does JOYSO make a profit?
JOYSO generates income from the transaction fees. Income will be generated from the trading fees in ETH or JOY. The commission for the order maker is 0.1% and 0.2% for the order taker. On the use of the JOY token, a 50% token discount is offered to the user. It also generates advertising and transactions though free ICO listings. Advertising on the platform will be competitive as ICOs paying with JOY will be eligible for a 50% discount.
Problems of CEX, DEX, and HEX
- The centralized exchanges, or CEX, are intrinsically vulnerable to tracking, fraudulent management, and the denial of service issues.
- Companies and investors lost around a USD1 billion in 2017 alone due to these issues.
- Nevertheless, the prototype decentralized exchanges (DEX) have so far not delivered satisfactory user experiences addressing these issues.
- Many features of DEX do not match with that of CEX, such as limit orders are generally not supported.
- On the other hand, the blockchain proves to have an inefficient architecture when it comes to the iterative and rapid processes required by a trading platform.
- There is latency in the blockchain processing as every transaction is verified in every distributed node of the network.
- This latency not only causes inconvenience but also provides opportunities for traders, miners, and exchanges to manipulate the market.
- Trading on blockchain is expensive too, as every order, modification, and cancelation incurs a transaction gas fee.
- The hybrid solution appears to be the way out in such a situation.
Solutions offered by JOYSO
- JOYSO provides the decentralized architecture of a hybrid exchange (HEX) design, in which the user controls the funds.
- There is a centralized database that matches the market transactions dynamically.
- The transaction will be published on the blockchain only when a deal is done and the availability of the tokens is confirmed.
- Users will have the benefit of a dynamic market for sequential processing of the trade in real time.
Instead of an on-chain order book that incurs substantial gas fees, a HEX centralizes the matching. The automated matching of orders is not practical in an on-chain environment though it is quite common in centralized environments. This way, JOYSO’s HEX platform is able to replicate the feature set of large centralized exchanges. The unfulfilled portion of an order would be re-categorized as a new order. Besides providing an efficiency dividend, the mechanism lessens the impact of large ICOs and exchanges on the overall performance of the network.
HEX does not require a customer to login, as the ownership is passed directly to the purchaser. It facilitates transactions, it but has no access to the tokens being exchanged. Settlement can be done on-chain with smart contracts that serve as an open source and verifiable trust engine.
Here are the key benefits of the JOYSO platform
- All orders are limit orders and provide the best possible price.
- Smart matching eliminates security issue concerns.
- Gas fees are lower than fully decentralized exchanges.
- Smart matching is off-chain, processing is fast and there are one-to-many matches.
- One can deposit directly into the smart contract.
- The exchange can’t directly alter the balance in a user’s account.
- One can cancel the transactions up until they are matched.
- Completed trades are transparently and traceably published on the blockchain.
JOY is a utility token as it provides discounted transaction fees to the users. The token allows the user to access a 50% discount on transaction fees. However, the discount does not apply to gas fees. The token holders have the right to vote on various governance and operational issues. Advertisers can use the tokens to earn discounts. The token will be transferable upon purchase and tradable once the ICO ends in late March 2018.
The JOY token allows for voting, trading, and participation in the ICO list. The new list can have JOYSO for free. The ICOs can earn 50% discount on advertising fees using the JoySelect program. Decentralized margin trading will be launched in Phase II where the JOY token holders will be allowed to trade with lower collateral in comparison with ETH.
ICO and Joyo token sale
- ICO start date: March 1, 2018.
- ICO end date: March 21, 2018.
- Purchase cap: There is no purchase cap.
- Token type: Ethereum ERC20.
- Price: 1 ETH = 10,000 JOY.
- Total tokens to be generated: 200,000,000 (100%).
- Distributed for ICO: 100,000,000 (50%).
- Distributed for private placement: 50,000,000 (25%).
- Reserved for JOYSO team: 50,000,000 (25%).
The tokens will be tradable after the end of the ICO. All unsold tokens will be released in the years to come at a rate, but not higher than 15% per annum.
Application of funds
The raised funds will be utilized according to the given structure:
- Product development: 35%.
- Marketing: 20%.
- Operations: 15%.
- Team reward: 10%.
- Legal compliance: 10%.
- Security bounty: 10%
The team behind JOYSO
- Tom Soong (Tso-Jung Sung),
- Taka (Chi-Chun Kao),
- Will (Yung-Chen Hsieh),
- John (Yu-Han Chu), DevOps Engineer.
- Kevin (Ting_Yuan Chen),
JOYSO features a hybrid design for token trading, combining the fast and fully featured advantages of a centralized exchange and the improved security and privacy of a decentralized exchange. The Hybrid Exchange (HEX) can efficiently handle ERC20 compatible tokens. There is no need to involve a central exchange to store the private keys and personal information, thus the chances of hacking this information are largely eliminated. Compared to decentralized exchanges, it substantially improves the user experience by taking order placement and order matching off-chain.