Huobi, a cryptocurrency exchange, announced that it will launch its own open-sourced blockchain protocol and it will use 30 million of its Huobi Tokens (HT) to fund it, reported Coindesk on June 6.
Currently, based on CoinMarketCap data, the fund is worth approximately $166 million, which will be used to develop the Huobi Chain Project. The company also expressed that one goal of this project is to build a decentralized autonomous organization (DAO) on top of the proprietary blockchain.
Chen Guang, a director at the company’s ecosystem development arm, said that the blockchain will serve as a platform for users to have a role in initial coin offerings (ICOs) and to vote for which tokens should be listed on the cryptocurrency exchange.
Huobi is planning ultimately to integrate its cryptocurrency exchange into its blockchain to evolve it into a decentralized exchange but this move is still not confirmed as it would require a high level of security.
Chen is convinced that the future of the blockchain will be a combination of decentralization and centralization.
“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.”
Huobi is seeking external assistance in order to develop the blockchain-based system by offering $166 million over a number of stages.
The firm expressed that the project is anticipated to be completed in the next year and a half, which will be divided into eight phases where it will be a contest between developers for the tokens.
A committee will be established in the next two or three weeks in order to guide the process with a policy and self-regulatory framework for the competition.