# Roadmap: from Microtick to DiscoveryDEX

After a public submission process to rebrand Microtick, the community decided to change the name of Microtick to DiscoveryDEX.

https://explorer.microtick.zone/proposals/16
https://explorer.microtick.zone/proposals/17

The Microtick (DiscoveryDEX) community must move forward and propose and follow a new roadmap to achieve its objectives.

We as community should agree and establish the points of the Roadmap.

1. Process to choose the new name (done)
2. Establish a new Roadmap (in progress)
3. Buy domain (discoverydex.io) (done)
4. Agree a new distribution of the supply (in progress)
5. Establish grants
a. For new rebrand, image kit, (logo, web development, etc) (in progress)
b. Front end development (discovery price & futures)
c. Marketing and social management
d. Core development and DAO organisation
6. Proposal to reduce to 0% inflation. (done)
7. Proposal to stop the cosoms chain at date 01-08-2022 (done)
8. Communicate it to Community and Osmosis

Points to discuss: recently it have appeared a new discussion about move the new DiscoveryDEX to Ethereum-L2, we should take in consideration the two scenarios:

## 2. Establish a new Roadmap for Arbitrium - ETH-L2 (in process)
Open for discussion

## 2.1. Agree the new distribution of the supply (tokenomics) for ARBITRIUM-L2

Current TICK: 
Supply:  1,383,296.26 TICK

We can allocate 1:35 of current total supply

* X% for current holders
* Y% for Core Development
* Z% for Crowfunding
* Z1% designated to add liquidity.
* Z2% designated for Grants, Hackatons, etc
* A% for Airdrops (marketing, promotions, etc)

We need to assign the % above:
* X = 35% (option2: maybe 40%)
* Y = 15% (option2: 10%)
* Z = 40% (option2: maybe 40% as well)
* A = 10% (option2: 10%)

Example: Simulation DiscoveryDEX: 
total supply: 138,329,600
X = 48,415,360
Y = 20,749,440
Z = 55,331,840
A = 13,832,960

## Plan: from Microtick to DiscoveryDEX
As you know, attending the last Governance talks at Discord, the rebranding process affects also the current way to run the Discovery Price App and Market Maker App in the Cosmos SDK Blockchain.
The plan for moving from Cosmos to Ethereum involves steps that need to be taken.
One of them is stop the inflation to make better calculations from a fixed state about Total Supply and new Tokenomics.
Another step is to plan the `microtick-1` chain halt. Before this happens existing tokenholders that want to claim the new Ethereum tokens should move forward and perform some steps.

Below is a rough picture of the "Roadmap to Ethereum" as is being discussed. Comments from the community are welcome.

### Plan part 1

1) Create a new validator, a DiscoveryDEX validator with 0% fees.
2) Everyone should stake or restake their tokens to this validator with the 'memo' field set to: `$ETHEREUM_ADDRESS` replacing it by your ETHEREUM ERC20 (not exchange) address. Do not forget the memo field - this is how you register your Eth address as an existing TICK holder!
3) We give one month and half to finalize everyone's decising and then halt the validator. If the stake is > 33% this will halt the chain.
4) The new tokens must be claimed on the ERC-20 contract when it is ready. The new tokens will be tradeable on Uniswap or other Ethereum DEX's after a vesting time (tbd), even prior to the new Discovery DEX smart contract system being ready.

### Plan part 2

1. The crowdsale code must be in the ERC-20 contract when it is launched.
2. A crowdsale of Z% with proceeds going to a multisig DAO address. This will only happen after shutting down the Microtick chain

## Development

A whitepaper will be created and released pending completion of the version 2 protocol research, which is currently happening. At this point the Discovery DEX smart contracts will be built and a L2 chain will be chosen.

### High level overview of the upcoming Discovery DEX v2 protocol

The new DEX will eliminate the Microtick v1 order book and instead allow market makers to contribute to liquidity pools that will use a bonding curve for the option premium. This removes the need for market makers to calculate premium pricing and leaves it up to the market to determine fair premium. If the bonding curve premium is low with respect to market volatility, takers will buy options to speculate on price movement. This drives the premium price higher up the curve, similar to how uniswap and other AMM DEX's work for token prices. If premium becomes too high with respect to volatility, traders will sell options to capture premium in return for posting collateral. In this way as market conditions change, the bonding curve premium will naturally gravitate toward a fair price.

Market makers, once they have contributed to the liquidity pool, can post their price assertions. These quotes do not need to be concerned with volatility the way Microtick currently requires.

Trade matching will operate like this:

* The taker (both short and long) will always pay or receive the bonding curve premium.
* The market maker(s) with the cheapest quotes (the outlying price quotes) will be discounted according to how far they are from the consensus (similar to how Microtick v1 worked). The backing from the marker maker will transfer into a collateral pool for active trades. This will remove weight from the weighted average for those outlying quotes and automatically move the consensus price accordingly.
* The difference between the bonding curve premium (taker) and the discounted premium (maker) for individual quotes will be paid as fees into the liquidity pool. In this way the disagreement between market makers on the current consensus price is what generates fees for the liquidity pools. There will be no need for a percentage commission for trades in Discovery DEX smart contracts (although this feature could be built as an option).
* The collateral pool will handle the collateral for trades in progress. At the completion of a trade, collateral not payed to the taker as profit is refunded automatically to the liquidity pool.

In this way the moving average consensus will track the current price as outliers are matched first, similar to how Microtick v1 worked. However, the complexity of calculating premium is moved to a bonding curve so market makers no longer need to compute premium and submit it with their price assertions.

### Token futures

Token futures trading will be built in a separate smart contract system, after the release of the Discovery option pricing AMM.

###### tags: "DiscoverDEX"