Phemex Celebrates Four Years of Unlocking Blockchain Potential, Enters a New Era by Pledging to Share Revenue

This decentralizing exchange continuously reinvents itself – but only as a byproduct of reinventing the crypto space. Completion of its Web3 ecosystem and a commitment to share its success with users lie on the horizon.

Nearly four years ago, Phemex emerged as a fully centralized crypto exchange. Throughout its evolution, Phemex has meticulously curated an optimal trading environment for its global user base, emphasizing security, cutting-edge technology and efficiency.

It has successfully weathered the prolonged crypto winter, a feat that deserves recognition in its own right. However, what distinguishes Phemex's journey is the exchange’s shift towards its own Web3 ecosystem, Phemexia, which integrates decentralized elements into its platform and pioneers a hybrid exchange model.

Phemex is now on a path towards a decentralized future where its community takes center stage, fostering collaborative success and sharing the results.

Building on the past

Phemexia is the culmination of four years of consistent innovation from a team that prides itself on providing traders unparalleled speed and reliability. While Phemex’s best days may well be ahead of it, the progress it has made thus far is worth reflecting on.

Phemex’s unique technical architecture and efficient trading engine have resulted in millions of global users engaging in tens of billions of dollars in trading volume across diverse and high-quality spot pairs and futures contracts.

Security lies at the core of crypto, and Phemex certainly didn't take it lightly. Using an innovative cold wallet system, Phemex has ensured the safety of users’ funds at all times. Additionally, any user can take advantage of the exchange’s Proof of Reserves tool to verify the secure storage of their assets. And, while Phemex is actively emerging from its centralized cocoon, it was in its time the first CEX to offer Proof of Solvency.

So when everything seems to be sailing smoothly, what prompted the shift from a purely centralized model to a hybrid exchange?

“While centralized exchanges have traditionally been instrumental in streamlining the trading experience for smooth user interactions, users are yearning for increased autonomy,” says COO Stella Chan. “Phemex envisions the ultimate evolution of Web 3.0 to go beyond financialization, embracing digital identity, trust-building and permissionless collaboration.”

In response to queries about Phemex's outlook for the upcoming chapter, Chan and her team committed to taking user empowerment to new heights.

“Our vision for the coming year is to deliver the autonomy our users have long desired through a transparent and reliable exchange,” she says. “We are dedicated to sharing a portion of our revenue with them, granting governance rights and offering exclusive perks on our platform. By being part of our revolution, they will seize the opportunity to experience financial freedom like never before.”

Empowering the community

The voice and participation of Phemex’s user community has always been key to the exchange’s success.

The community aspect rose to a whole new level with the launch of Phemexia. Phemex invited its users to each mint their unique Phemex Soul Pass (PSP), a non-transferable, non-tradable ERC-20 token designed to authenticate the identity of its holder. This not only provided more than 20,000 users with the provenance necessary to engage in trustless trade, it also enabled them to join the pre-mining event for the upcoming Phemex Token (PT).

Once PT launches at the end of this month, community members will be able to stake it and gain access to a daily dividend of 0.01% of USDT-margined contract trading fee revenue.

“Phemex is looking to elevate its users from mere traders to true partners who will actively shape the trajectory of cryptocurrency trading,” Chan says.

Community members who participate in staking will also be eligible to own the vePT governance token, which grants Phemex DAO voting rights over platform operations, growth, partnerships and treasury.

“Phemex’s commitment to democratic governance in its hybrid future is unwavering, and vePT embodies that commitment,” Chan says. “This makes us the first major exchange of our kind to incorporate DAO into daily operations, aiding our evolution from centralized to semi-centralized management.”

Best of breed

Phemex’s overarching strategy is to start with a centralized core infrastructure, then devolve much of the ownership and decision making to a decentralized user base.

That’s why Chan’s team decided to burn the fifth stage of pre-mining tokens and redirect all funds generated to the treasury. The goal is to provide traders on Phemex a platform that delivers long-term value.

Next up, PT’s value will be determined by taking advantage of the underutilized “Dutch auction” mechanism during the PT Bidding event. By that method, the seller asks a price at the high end of the expected range and then the price drops incrementally to the point where all units would be sold. This technique was chosen “to uphold the principles of fairness and transparency in acquiring PT and align with the ideals of a genuine decentralized society,” according to Chan.

These aspects directly incorporate on-chain smart contracts, serving as further evidence of Phemex's transition into decentralized processes.

The long view

Phemex is now preparing for the launch of its forthcoming token. Opportunities to get in early are present in the “Phemex Token to the Moon” event, which recently kicked off with hefty PT airdrops to PSP holders.

The exchange is now nearing the second stage of this event, in which users will have the opportunity to participate in a fair and transparent bidding process on November 28. The bidding event offers users the unique option to return their PT at a later time and get back their bidding commitment, which essentially makes the event risk-free. Phemex is also planning other surprise activities to celebrate its 4-year anniversary, with the community it takes pride in building and growing alongside.