Streamed Live on 13th April, 2022
Parties Present: Jason Park, Head of Business Development for Bittrex Global
Justin Waiau, Co-Founder of LGCY Network
Note: This AMA transcript has been edited for grammar, clarity, and readability.
Introduction and Background
JP: We really appreciate you joining the podcast today, and we are super excited about listing you guys, continuing the dialogue, and really learning more about your token and your team.
JW: Thanks for having us, and we are really excited to be part of the Bittrex family now.
JP: Yeah absolutely. So for our AMAs, we source questions from both our Bittrex Global and the broader crypto communities for your listing, so let’s dive in. So to kick things off, we always like to learn a little bit about our guest and hear your story, so can you tell our audience what gave you the idea to create this unique project?
JW: Kind of in a nutshell, it’s a long story for sure. We started trading, we had a trading group with me, Wes Wade, and some of the other guys who are involved in the project, and we believed in crypto and the blockchain and all the things we wanted to invest with. We wanted to be maximalists about it, we really believed in the projects. Personally, I started in import and export, what drew me to blockchain was being able to send funds overseas immediately, and settle without the need for a third-party. So that’s how I came in, and we had this group trying to look for great projects we could really buckle down and support. It was a little bit hard. We had a hard time finding projects. There was always something wrong, and you know, eventually we decided, let’s make our own project. That would be easier to send money and solve the problems with the projects we were investing in, and that’s kind of how we got started.
JP: When did you guys first get into this space?
JW: When we started and we were forming our team and deciding what we wanted to do was about maybe three years ago and started with Ethereum. It was too expensive to build on and not viable for what we wanted to do, so we eventually came across TRON, which we really love even to this day, but we had some differences with their leadership and their vision. So LGCY was born when Wes Wade, my co-founder, said let’s just build our own blockchain and make it solid from the start.
JP: Sure, and can you share background about your leadership team?
JW: We have Wes Wade, he is actually a pastor, he is our team leader, he handles the day to day. I am the project manager, I do kind of the same thing. We have Abhilasha Singh, who is our main head developer. We have Craig Mackie, he is our marketing director, he’s been everywhere in the game. He goes to conferences, and we have all been in the game for a long time.
JP: Before we do the details of the project, I was curious to learn the name, why LGCY Network, what gave you the idea for that?
JW: It was a play on Tron, as we forked TRON as our base before we changed it. LGCY is the second movie after Tron so that’s how we got it.
LGCY Network Roadmap and Upcoming Milestones
JP: OK, so, I guess looking forward now, can you talk us through the themes, the LGCY Network roadmap and upcoming milestones look like for the immediate next year and long term next three to five years?
JW: We just launched the chain officially this year, so we have been hardening it, testing it, we built developer tools, we released staking, but what is next for us is we are going to be releasing MyriaDex, which is our exchange DEX that will be using USDL to pair against it. We will have wallets, desktop wallets, a Chrome plug-in extension, following the normal blockchain ecosystem, Hotbit finished integration for our LRC tokens. We are trying to build our ecosystem to get all the known dApps in place. We have Pendulum Finance which is our DEFI arm of LGCY.
JP: Got it. If you can go back a bit, give us a brief introduction to the token please?
JW: Yes, we have two tokens. We have LGCY, which is our governance token for voting and to be used for proposals. We also have our gas token, which is what we are really proud of. It is a stable gas token called USDL. One USDL is equal to one dollar in server fees on our network. What it does is allow users to send transactions on our network and not have to worry about, say, “Oh, today it’s going to cost 200 dollars but yesterday it was five dollars,” and not have to worry about the volatility of it. It allows developers to create dApps and actually be able to budget how much it is going to cost over a year or two years without having to worry about Ethereum, and if it’s going to spike they might not have enough money to be able to afford to run the dApps. We are fast, low cost, and have all the bells and whistles of a new chain.
JP: When you say the LGCY token is a governance token, can you expand a little on that?
JW: The way it works is that it isn’t proof of stake and every token gets a vote. You stake it with a delegate, so it is DPoS. We have about 27 that are allowed to vote on proposals, they are developers, they know what the chain needs, they allow others to stake with them and send them rewards in return.
JP: OK, got it. Also a question about the community building aspect of the token. Every token is important to develop their community and build their user base around that identity. How did you continue to build and get the community to build around that identity and build and grow globally to this day?
JW: We have always been focused on community over everything. We have dedicated a third of our total token supply to be staked in perpetuity, and the rewards from that will be voted on by our governing bodies, by the community, so that forever the network will be able to fund projects and encourage developers to get on board. That’s been kind of the biggest thing, and personally I have burned all of my team allocation to make it so it is more decentralized so that I can’t overrun and overrule everyone with a massive set of votes. Keeping it as decentralized as possible, encouraging developers, incentivising them, and that’s kind of the strategy.
JP: OK, can you dive in on the funds and liquidity side of things to support your developers? It is interesting you have liquidated your portion and it’s for the developers.
Token Liquidity and Tokenomics
JW: Can you clarify liquidity?
JP: Do you guys have specific plans to fund and add liquidity for your developers and to build? I know you personally have liquidated your portion of the tokens. Are there any future plans for building on top of that?
JW: The developers, we encourage them to do one or two things. They either use their LGCY tokens they have gained from us or use their rewards and become governing bodies and become one of the delegates so they can become powerful in the community and make decisions that way. But to use it to fund, the way we will add liquidity, you will stake LGCY and you get USDL so that LGCY is not inflated. What you can do with it after is that USDL is the base pair for MyriaDex, our DEX, so they can use that to buy any token on our DEX and use that for funding their project.
JP: Got it. Also curious to learn the listing strategy on a centralised exchange. We are very happy to have you listed on Bittrex Global, but at the same time, what is your future strategy for working with centralised exchanges out there?
JW: Our strategy from the beginning has been to list. We don’t want a billion listings and have it spread everywhere. Every time we get a new listing, we want to make it a new home of ours. So, for example, this AMA, we want to push people to Bittrex and get a foothold there before moving on to another exchange with everybody jumping from one exchange to another. Our listing strategy has been to dig into what we have and move slowly on that.
JP: Got it. Another topic we had a lot of interest in in our community is the tokenomics. Can you walk us through the LGCY tokenomics and the structure?
JW: We originally started with 100B tokens. 33B of the tokens were meant for us to hold whilst we wanted to stabilise and have control of the network and then to burn those. We actually got a lot of community interest and confidence so we burnt that right away in the first year. The next 33b tokens were to go to the developer fund to be staked in perpetuity, and the rewards from that were to be given to the community. The last third, I think 20B, was presale. We sold 12.5B and burnt the rest. 5B went to the team, and the rest went to exchange allocations and a small dev fund before staking started.
JP: So can you also talk on the staking features for our listeners?
JW: We are doing it a bit differently than normal staking. We have our base staking, where you stake your LGCY in the pool and you have 12 months to get back an equivalent amount in USDL, a percentage of it. The way it works is at the end of the staking it calculates how much the LGCY is worth and you get a percentage of it in USDL, not in LGCY, so there is no inflation of it. We also have the 27 delegates that run the network. Our users can stake with us, or they can stake with them, and they can give out their own separate rewards. For example, we have one of our delegates called Liquid LGCY, and when you stake with them, you get back a derivative called sLGCY which you can use or farm for yield. It’s a receipt basically on your LGCY. It is one to one, and at the end of the 12 months, they get back their USDL rewards and they have to return their sLGCY so they have something to do in the meantime.
JP: So if you are not a developer and you are getting USDL, is there an offramp option for USDL as well?
JW: Well it is a new token, so we are trying to get some listings for it. Initially we had some ERC-20 version token of it, and it was on Biki and it was on Bilaxy. But Bilaxy had a hack and BIKI shut down. That was a few months ago, and now we are working to get more listings for USDL and have that offramp.
JP: Got it. And I think Bittrex Global is a logical option to list USDL, as obviously we have the LGCY token listed on our exchange.
JW: We would love that.
JP: So can we talk about how you guys ensure the safety and security of the users, some of the protocols and procedures that ensures everyone using LGCY is protected?
JW: That’s where the governing body comes in. We created our network and we have self-audited a thousand times over, but that’s where the GBs come in. So if something needs to be changed, it cannot be changed quickly. It can be changed slowly, which is a good thing with a majority vote of the 27 GBs, so I think slow change is our biggest security. When it moves too fast not everyone can debate all the pros and cons of the new development, so that is our biggest security.
JP: That’s the approach a lot of the up and coming projects really take. Ethereum, Cardano, those projects were not as decentralized as they are right now. A lot of teams are definitely taking that approach and ensuring users that you guys are committed to becoming more decentralized. That is also good for the industry. Let’s also talk about your target customers. How do you intend to attract users? Is there any user you are really intending to target, push marketing on, and build awareness?
JW: That goes into this other project I am working on and building on LGCY called LootUp that is under a publicly traded parent company called Quantum International, which I am president of. Basically, we are trying to get out to the everyday users the ma and pa, the grandmas. LootUp is a payment app made to make crypto easy and a no brainer. A few examples would be instead of sending to a long address, on the LootUp app you will be able to send to a username and whitelist the usernames. Another thing we are doing is sponsored gas. So you will be able to use tokens on the app without having to have the USDL gas for it. We pay the gas, their token gets sent out, and they only need that token to do it, so you don’t need two tokens to do that one thing. Another really cool feature is a confirm and cancel feature. You can send money or funds to another person and they either confirm it or cancel it as it gets trapped in a broker address. And, you can send invoices with it, so we really are just trying to bring together and put all the pieces of the puzzle together and make it easy for everybody.
JP: Is that specifically powered by the LGCY token or is it going to have different assets?
JW: It is going to have LOOT as its own token, but it’s going to be built on LGCY and powered by USDL.
NFTs and Marketplace
JP: That’s very interesting. Obviously the whole point of building is to have retail come in, and I think that you guys are doing that and in parallel, so that’s very interesting. We went through the questions pretty quickly. Is there anything else you want to talk about?
JW: Yeah, maybe some new partners we have. We have this art gallery owner called Bill Wyland, very famous in the art community, he recently joined the board with Quantum International Corp, which is LootUp, and he’s going to be bringing a lot of legitimate well-known artists into the LGCY NFT market place. That’s kind of been what I have been doing this last week. It’s going to be brilliant. We already signed a few artists. I can’t say who, but yeah, I am very excited about that. There is nothing wrong with the NFT market right now with these great new artists, and it is a really cool space, but I think we need some big names in the art world.
JP: Yeah can you explain a bit about that marketplace?
JW: The marketplace is also going to be on LootUp as a new feature in the app. So it is a payment app, but you will be able to buy things in the marketplace such as NFTs and actual real-life goods as well, so I think it’s going to be really cool. The space has brought a lot of cool products, but I feel not too many people have put it together. There is a whole project for a cool feature then there is another project for another feature, but they’re missing that one, so you know I am really excited about the future of LGCY Network.
JP: I’m assuming the marketplace is a standard bit install you guys built?
JW: Yeah, we’re working with World Token to do that. They already have their marketplace up and are one of our partners.
JP: I got it. Might just take one big artist to really attract other projects to come onto the marketplace, so it is really exciting. For our final question, what’s the best way our community members can get involved with the LGCY Network project?
JW: We are very active on Telegram and we are active on Twitter as well. We have a Discord open. A lot of our founders and heads will go into the chat and chat with everyday people, our users, and the community. We try to be very available. We don’t hide behind mods or anything like that.
JP: Thanks Justin, that’s good to hear. Thank you for doing this AMA today. I think we learned a lot about your token and other business activities that you are currently doing, so we’re very excited about partnering with LGCY token and future activities.
JW: Thanks for having us. We are excited to get moving and excited for our promotions with Bittrex, and yeah, thank you so much for having me.
About LGCY Network
LGCY Network is a DPoS open source blockchain protocol with an industry-leading transaction speed and flexible utility. Designed to be the most truly decentralized dApp blockchain in the world, the network implements the Libertas Protocol to the Governing Body (GB) system of governance. By splitting up the 27 GBs into three branches, limiting the power of each, and introducing terms to the governance system, no single large token holder will be able to gain an unbalanced amount of power.