The Huobi Exchange has announced that it is planned to allocate 30 million HT tokens for the development of its own open source blockchain protocol, CoinDesk reports.
The money from the fund, currently estimated at $ 165 million, will be used to develop the Huobi Chain project, on the basis of which a decentralized autonomous organization (DAO) will also be formed.
The blockchain will be used as a platform that will allow users to participate in the initial coin offerings (ICO) and vote for the tokens, which will subsequently be added to the main exchange.
In the future, the company intends to transfer its services to the blockchain, thus transforming into a decentralized exchange of cryptocurrencies, but these plans have not yet been approved, since such a system will require additional security and efficiency conditions.
We want this to be a social experiment. The future is not likely to be entirely decentralized. As such it's important to find the equilibrium that balances the two polars, which is the ultimate goal of this exploration.
Huobi intends to attract outside assistance to develop a new system and, in addition to its own tokens, is ready to spend part of its income on these purposes.
It is expected that the development of Huobi Chain will take 18 months, and the whole process will be divided into 8 stages, each of which will be held a competition for developers. In the next 2 or 3 weeks, the exchange will organize a council that will manage the process and establish the rules for competitive selection.
Chen said that currently his company is negotiating with 10 leaders from among the well-known participants of the blockchain space, who can help in forming the council, but refused to give their names.
Subsequently, the council will compile a list of candidates for the role of the head of the Huobi Chain project. Exchange users will choose the winner themselves by voting using HT tokens.
Size of funding that will be allocated for each stage of the project is unknown, but Chen argues that the amount will grow as Huobi Chain develops.