Cryptocurrency exchange Huobi announced Wednesday that it plans to allocate 30 million of its Huobi Tokens (HT) to fund the creation of the company’s own open-sourced blockchain protocol.
The fund, currently worth around $166 million based on CoinMarketCap data, will be used to launch the Huobi Chain Project, which is also aimed to establish a decentralized autonomous organization (DAO) on top of the proprietary blockchain, the company said at a press conference in Singapore.
The blockchain would serve as a platform for users to participate in token fundraising events (ICOs), as well as to vote for which tokens should be listed on Huobi, said Chen Guang, a director at the company’s ecosystem development arm.
While the firm also envisions ultimately migrating its exchange to the blockchain system to evolve it into a decentralized exchange, such a move is still uncertain as the move would require higher levels of efficiency and security.
Even so, Chen believes the future of the blockchain ecosystem should be a combination of centralization and decentralization.
He told CoinDesk:
“We want this to be a social experiment. The future is not likely to be entirely decentralized. As such it’s important to find the equilibrium that balances the two polars, which is the ultimate goal of this exploration.”
As such, Houbi is seeking external assistance in developing the new system by providing the 30 million tokens as incentives over a number of stages. Further, Chen said, the exchange will allocate a fraction of its yearly revenue to the pool, though it