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title: TribeDAX

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*Decentribe White Paper*

![](https://i.imgur.com/gXZFjId.png)

# TribeDAX

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*TribeDAX Development Status: 30% Complete*
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<i class="fa fa-info-circle fa-fw"></i>Summary

*What is TribeDAX?*

- TribeDAX is a fully decentralized auction-based exchange that will feature Decentribe's tokens ([TRIBE](/PplyWNd3RI63c6_aIbAnbg) and [DECENT](/WcnnzxCUQZu_CVw-NGfTgA)) and [NFTs](/yLigQ18uRGy-dM65ZWJ1xw) at launch

- Users will be able to purchase bundles of tokens, NFTs and other assets from others through various types of auctions

- TribeDAX will be fully non-custodial, feature no order books and preserve user privacy 

- After Phase 1 of development is complete, users will be able to trade Decentribe tokens and NFTs on TribeDAX (TRIBE tokens will also be made availble on decentralized/centralized exchanges prior to TribeDAX's launch)

- Future phases of development will address common pain points of auction-based exchanges 
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We are creating TribeDAX, a decentralized crypto assets auction system that provides users with security, privacy and control. The exchange is at the center of our focus on bringing the worlds of decentralized finance and blockchain gaming together. 

The first use case for TribeDAX will be for the trading of non-fungible tokens (NFTs) developed for Decentribe blockchain games and project tokens (TRIBE/DECENT).

**Why TribeDAX? Understanding the Cryptocurrency Exchange Dilemma**

As the cryptocurrency market has evolved, those interested in trading crypto assets have faced four issues (summarized in the table below). 

| Issue | Description |
| -------- | -------- |
| Crypto Access    | The ability to find and trade a variety of cryptos with others  |
| Security    | User funds are safe from mistakes, hacks or theft |
| Privacy    | Trading without having to compromise personal information |
| Liquidity    | There is enough trading volume to reduce price slippage, or significant increases in price — especially when making large orders  |

Centralized and decentralized crypto trading platforms have been developed to address these issues, but none of them meet all traders' needs.  

| Exchange Type | Exchange Benefits | Exchange Drawbacks |
| -------- | -------- |-------- |
| Centralized Exchange    | Crypto Access, Liquidity  | Lack of privacy due to KYC regulations, transaction tracking, poor security (centralized exchanges are prone to hacks and theft) |
| Decentralized Exchange    | Privacy (if non-custodial, no KYC required), Security (if exchange does not control funds)  | Low liquidity (due to low trading volumes, utilization), Poor crypto access (If coins are not listed on exchanges or liquidity is very low) |

Despite the low liquidity and lack of access to certain cryptos, some segments of the crypto community prefer decentralized exchanges because of their privacy and security benefits. 

**The Order Book Problem**

Many decentralized exchanges have one feature that makes them less than ideal for many tokens with limited liquidity: order books. With order books, trades will only be completed if a buy offer price (bid) matches a sell offer price (ask). 

 In many cases on order book-based exchanges, less popular tokens have low volume because traders cannot agree on a price. 
 
 This has an especially negative affect on buyers seeking to make large crypto orders. They often face exponentially increasing prices due to large differences in sell bids.  
 
 The second issue with order books is front running, where miners or exchanges themselves act on large buy or sell orders before they are executed, in an effort to make higher profits (front running is illegal). 
 
 There is one type of decentralized exchange that is ideal for less liquid tokens (or other crypto assets such as non-fungible tokens (NFTs)): **auction-based exchanges**. 

In these types of exchanges, order books are unnecessary, because buy orders can be submitted individually (or at once), during an auction. Sales can take place either on-demand or after a set period of time. 

The main drawback of auction-based exchanges is that trades tend to be executed slower, and they are sometimes hard to use. 

We feel that developing an auction-based exchange meets our goal of delivering truly decentralized financial solutions to the crypto community. 

Such an exchange is ideal for the Decentribe crypto economy, which will have assets (tokens and NFTs) that may appeal to a smaller audience of crypto enthusiasts—and have lower inherent liquidity. 

**TribeDAX Features**
| TribeDAX Feature | Description |
| -------- | -------- |
| No Order Books    | Users will submit bids for crypto assets and sales will be fulfilled through different types of auctions (see below)  |
| Fully Non-Custodial    | Decentribe is never in control of users' crypto assets  |
| Limited Price Slippage    | TribeDAX will enable users to purchase large quantities of crypto assets without worrying about large price increases (price slippage). |
| Various Auction Types    | TribeDAX will feature various auction types, such as [Dutch](https://en.wikipedia.org/wiki/Dutch_auction) (descending price auction) and [English](https://en.wikipedia.org/wiki/English_auction) (ascending price auction)|
| Asset Pricing Information    | One of the drawbacks of auction-based exchanges is that buyers and sellers have limited pricing information. In later stages of development, TribeDAX will provide users with guidance about the best pricing strategies (suggested buy/sale prices, for example) that allows traders to make sales more fairly and rapidly. |
| Bundle Sales    | Crypto auctions can be highly successful if buyers and sellers are able to purchase bundles of assets. Bundled token/NFT auctions will be made available to TribeDAX users.  |
| Non-Censorship    | In the future, we will open TribeDAX to other token listings; tokens will never be removed after being offered for sale.  |
 
**TribeDAX Development Phases** 

Because TribeDAX will require significant development time, it will be deployed in phases, as outlined below. 

| Development Phase | Description |
| -------- | -------- |
| Phase 1    | TribeDAX will be introduced with a basic buy/sell interface, limited auction types and focus on Decentribe tokens ([Tribeum (TRIBE)](/PplyWNd3RI63c6_aIbAnbg) and [Decent (DECENT)](/WcnnzxCUQZu_CVw-NGfTgA)) and [CoinEmpire NFTs](/yLigQ18uRGy-dM65ZWJ1xw)  |
| Phase 2    | Additional auction types and bundled sales introduced; user interface upgraded  |
| Phase 3    | Non-Decentribe tokens/crypto assets (such as NFTs) will be available on TribeDAX |
| Phase 4    | Ethereum network-based privacy features introduced on TribeDAX as they become more effective and mature |
 
See [the Decentribe Roadmap](/7HOxaPxtS6iyVvYpVNFS3w) for information about when Phase 1 of TribeDAX will be released. 

**TribeDAX Fees**

TribeDAX's fee structure will be announced closer to release of the phase 1 exchange. 

A percentage of TribeDAX fees will be distributed to holders of Decentribe's governance token, [DECENT](/WcnnzxCUQZu_CVw-NGfTgA).

[Next: TribeANALYTICS](/arFcn-x3Sa-ErFtuTfAkpg)

[Back to White Paper Table of Contents](https://hackmd.io/@decentribeTEAM/Decentribe_Whitepaper)