JustMoney, a new paradigm
As those of you who follow our project may already know, we have been planning for some time to take JustMoney token cross-chain. It has been a roadmap goal to expand from our original Tron chain to BSC, Polygon and BTTC and we are proud to announce that this day has come, thanks to the public launch of JustMoney Bridge and our new token which will replace the old one. Please spare us a few minutes of your valuable time, as the team introduce the exciting new developments in the JM ecosystem.
Firstly, we have launched a new version of our JustMoney token which will now be available on multiple chains. Initially these chains will be Tron, Binance Smart Chain, Polygon and BitTorrent Chain. In time, we will expand further as the number of blockchains supported by JustMoney Bridge also expand.
The previous JM token has been renamed to OLDJM on our swap and there will be a migration page where you can swap your OLDJM at a 1:1 ratio with the new v2 JustMoney token. There is no time limit for this process, which will be done in real-time and governed by smart contract. The easy-to-use User Interface offers an instant exchange with no fuss or waiting. However, we suggest that you make the swap as soon as possible, as we will also be moving our liquidity from the existing OLDJM pools to pools paired with the new JustMoney token.
If you are currently providing liquidity in either of the original JM/TRX or JM/USDT pool pairs, we invite you to remove your liquidity from the old pool, swap your current OLDJM to the new v2 JM token via the migration page, and then provide liquidity once again in the new V2 pool pairs. There are many other pools on JustMoney exchange where JM token is not part of the swap pair. If you provide liquidity in a non-JM pair, you are not affected by this upgrade and do not need to remove your liquidity.
The biggest benefit that swapping to the new v2 token brings is that it is fully compatible with our cross-chain JustMoney Bridge, and that it will always show the correct total supply of JM regardless of how the JM tokens are distributed across varying networks. Also, when we donate our profits back to the community with our regular “buyback and burn” events, the burn mechanism will now permanently reduce the total supply of the new JM token, rather than just sending the burnt tokens to a blackhole wallet address.
Another big change is that we have decided to remove the taxation system from the new token. This is a necessary step for the long-term benefit of the project. Let me explain a few reasons for that:
We have consulted a lawyer specializing in cryptocurrency about the taxation subject and we have been advised that whenever there is a passive income that does not require any action by the holder (e.g. the holder doesn’t need to stake the tokens or any other type of “work”), the token should be considered as a security. This means if we were to keep the existing taxation mechanism on the new JM token, it would fall under various international Securities laws, and we would not be eligible for listing on the major (regulated) centralized exchanges. Most legitimate exchanges require a formal opinion from a lawyer stating that the token is a utility token and NOT a securities token. For the same reason, it would also make it harder to proceed with the JM team’s future development plans where JustMoney would need to operate within a mainstream/regulated framework.
As taxes can only be enforced on transactions that happen “on-chain” through our smart contracts, once tokens are deposited onto a centralized exchange, the token may be bought or sold an unlimited amount of times tax free, this only changes when the tokens are finally withdrawn from an exchange back to the holders personal blockchain wallet. This would make leaving the tax enabled very unfair. Those who were to buy/sell through a decentralized exchange would pay tax, while we would be unable to stop tax-free transactions for those who buy and sell on centralized exchanges. As people would naturally prefer to take the tax-free option, it is easy to see that if tax were to remain enabled, trading on a CEX tax-free would be the preferred option. In this hypothetical scenario, it would take trading volume and revenue away from our own JustMoney exchange as people would prefer the tax-free CEX alternative. As a portion of the fees earned from transactions on JustMoney exchange are used to “buyback and burn” JM tokens, this would have a negative impact to the JustMoney community. Put simply: less volume on JustMoney exchange means less fees generated that can be used to buyback and burn, and less positive price action. Removing the tax now prevents this hypothetical inequality and gives a level playing field to both CEX and DEX trading platforms in the future.
Also, we have noticed that there is a lot of arbitrage trading happening on JustMoney exchange, especially on BSC and Polygon chains. These trades create good volume for our DEX. If the tax were to remain enabled, the size of the price difference across chains would need to cover both the network fees, the impact of the tax, and a big enough remaining price difference to make it worthwhile for the trader. In this instance the tax inhibits the chance to arbitrage trade and reduces the potential trading volume for JustMoney exchange. Conversely, by removing the tax, we should see an increase in the trading volumes on our own exchange, meaning more fee revenue, to make bigger buybacks and burns, and more positive price impact in the future.
JM token will also be used in the bridge when doing cross-chain swaps. It will be a medium that we move between the chains and can use to swap with other tokens. This would also not work if we had the tax enabled.
In conclusion, we have recently given a lot of thought about the future of the project, the issues we might face and the opportunities we might seize. It occurred to us that removing the taxation system was the only feasible solution and we are sure that it can only bring a good dynamic for JustMoney token in terms of image, utility, usability, and acceptance.
So, for those passive income hunters, think of it like this — would you want to own a piece of a large market-cap project that will keep growing or would you like to own piece of a smaller project that will struggle to raise in value?
When it comes to passive income, we will be implementing some farming/staking system soon where you can earn additional rewards by staking your liquidity pool tokens.
When JustMoney exchange was released, it was the first exchange to correctly support taxed tokens across six separate blockchains; it was multichain. With the release of our latest product, JustMoney Bridge, it takes us from multi-chain to truly cross-chain. Not only will it allow JM tokens to be moved quickly and cheaply from one blockchain to another, but we can also offer this service to other projects, who can apply for their tokens to be added to the bridge. An opportunity to easily expand their project to other chains and utilize our fast 1–2 minute transit times.
We will charge projects a monthly fee if they want to avail this service. If you run a project and want to add your token on our bridge, please contact any of our admins on our telegram group @JustMoneyTRX or send an email to email@example.com.
Using the JustMoney bridge, not only can projects on Tron expand to other chains such as Polygon, BTTC and BSC. But projects native to BSC for example can also expand to Tron network, BTTC and Polygon. A fast and affordable two-way, multiple chain, cross-chain, solution as a service.
JustMoney Bridge will also provide the future infrastructure that will enable cross-chain swaps where it will be possible to swap any token on one chain to any other token to another chain — coming soon!
Security — we take it seriously
At the technical level, the bridge consists of multiple standalone validator nodes that “vote” as an independent witness to each transaction. Several votes are needed to pass the acceptance threshold for every transfer. The validator nodes are spread across different continents, and each uses a different key. Even in the extremely unlikely event that someone could access one key by hacking into one of the servers, they would still not be able to insert false transactions into the network since multiple keys are needed. No single JustMoney staff member has ever had more than one key and every validator node was configured by a different staff member. Each person only has their own key, and they don’t know the other’s key. This way we also make sure to minimize the risk if someone internally wants to get access to access of the minting functionality of the tokens.
Speed and cost
Transactions are done in 1–2 minutes no matter which destination and source chain is used. Each transaction has a very small fee. Normally around 0.6–1 USD in value. The fee is taken in the base coin of the source chain where you are transferring from. The fee will be used to cover the costs that we need to pay and for the gas fees when our validators do the “voting”. It will also leave us small income on top of that for the buyback and burns of our JM token.
In the future, our buyback and burns will happen on every chain where our token is deployed.
The JustMoney team is rightfully excited by these new developments, and we are sure they will take our project to new heights!
Thanks for reading,
Tobias Silver and whole staff of JustMoney
justmoney.exchange | justmoney.io
P.S. Special thanks for Marius who was working hard on delivering large and crucial parts of this bridge even through some difficult setbacks in his health. We all wish you well from our hearts!