REX Instruction

Dear Users:

In May 2019, the EOS main network and the BOS main network launched the system-level resource leasing market (CPU/NET) officially, and REX can be bought/sold as the only benefit token.

1. What Is REX?

REX is the abbreviation of "Resource Exchange", which was first proposed by Block.One on August 8, 2018 officially. It is a risk-free network resource leasing market created in the EOS blockchain. The Exchange allows token holders to rent their idle EOS to Dapp project parties, organizations or individuals, earning revenues such as “rental”, RAM interest, and bidname income.

2. Why Do You Need REX?

When the REX was first proposed, EOS was highly congested, affecting normal users' trading on the chain. Equally important, large distributed applications (DApp) are concerned about the scarcity of resources when running DApp, resulting in the increase of development costs. Resource leasing market can solve the problem of resource demand effectively. For example (The following data is only for reference): When you only have 50EOS, you can only stake CPU/NET of 50EOS, and the same 50EOS can rent CPU/NET of 5000EOS. For project parties with large resource needs but limited EOS balances, leasing is more attractive than stake for organizations and individuals.

3. Can REX Be Profitable?

The REX mechanism: User A transfers EOS to the REX Contract; the Contract will issue REX according to the rules. User A can change REX to EOS one day in the future, and the difference of EOS deviation on quantity is interest. According to the rules, the price of REX will not fall, so holding REX will gain stable income. The longer you hold, the bigger profits you will gain.

The Specific Exchange Rules of REX System:
The amount of exclusive EOS pool of REX = EOS of buying REX+ rental of leasing resource + RAM fee + bidname income

The amount of REX that someone can exchange = the amount of EOS that someone exchanges × (the total volume of REX / the amount of exclusive EOS pool of REX)

The number of EOS that someone can redeem = the EOS amount of REX × (the number of REX that someone wants to redeem / the total circulation of REX)

System Settings in the Initial State:
REX total circulation / EOS Total of REX = 1, someone 1 EOS: 1 REX exchange 

System Generates Profits:
REX total circulation (unchanged) / EOS Total of REX (increased) < 1, someone 1 EOS: 1 REX exchange

In the initial state, since there is no rental, bidname income, and RAM fee, system will issue one REX and transfer it to the user's account for each EOS saved. Subsequently, rental, bidname income, and RAM fee will be generated, and users who buy it subsequently will exchange according to the price of 1EOS less than 1REX.

4.How Is REX Traded?
1)Buy REX
In order to qualify for buying REX, the user must vote for at least 21 BPs or delegate their vote to the proxy. If you do not meet the voting requirements, when you buy REX on Newdex, Newdex will delegate your vote to the proxy account by default. You can use EOS to buy REX directly, or convert directly to REX by canceling the resource staking. Buying REX, EOS will be put directly in the exclusive EOS pool of REX, and EOS main network rents out uniformly.
2)Sell REX
When you convert EOS to REX, if you want to convert it back to EOS, the redemption period is generally 4 days. If the EOS in the REX pool has been mostly rented, not enough to pay the redemption quantity, you need to wait for new users to buy REX, maximum of 30 days (lease expiration).

Newdex team
May 13, 2019

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