(original and more up to date thread: http://letstalkbitcoin.com/forum/post/bitcoinexxcp-and-the-counterparty-gateway)
What is BITCOINEX?
BITCOINEX is a bitcoin "proxy" token used primarily for paying dividends etc. for other tokens. Mostly the same idea as XBTC.
Primary uses and advantages over BTC:
- Can be used to pay dividends at a protocol level, avoiding the BTC dust size limit, saving on transaction fees and maintaining a record of dividends on the blockchain
- Useful for faster/cheaper trading on the Decentralized Exchange (DEX), especially since regular BTC trading is currently disabled in Counterwallet
- Can be used in ethereum style smart-contracts (once it goes live on main-net)
- 1:1 exchange ratio for BTC. 1 BITCOINEX = 1 Bitcoin
- 0.5 % fee for new deposits. For example depositing 1 BTC will give you 0.995 BITCOINEX. No fees are taken when exchanging BITCOINEX back into BTC
- Accepts both BTC and XBTC for deposits, however will only give out BTC when exchanging back
- Sends out tokens after just 1 confirmation (instead of the 4 required for XBTC)
- Total existing supply of the token represents how much has been deposited into the system. For instance, if there is only 5 tokens in existence, but the vending machine has 0 tokens left and you deposit 10 BTC, it will issue 10 new BITCOINEX tokens, increasing the global supply to 15 total tokens. Tokens are recycled whenever possible, instead of constantly increasing the supply. This is in contrast to XBTC, which has 21 million tokens issued already (even though there will never be anywhere even close to that actually deposited or converted)
So how do I obtain some BITCOINEX?
Simply create a wallet on Counterwallet.io (if you haven't already created one), fund your address, and then send any amount of either BTC or XBTC to the official vending address:
After one confirmation, your BITCOINEX will be sent back to you (with the exception of if it needs to issue new tokens or not, in which case it may take a few blocks)
To receive real Bitcoin back to your address, simply send your BITCOINEX back to the vending address.
Questions, concerns, issues/bugs with the vending machine.. let me know!