Substratum Releases New Product Mysteriously Dubbed “Product 3”

Substratum is best known for working on fixing fundamental problems with the present way the internet works as a distributed web hosting network. The team’s vision, however, is actually much larger than this.

Beyond the release of their main product, a node that will enable users to earn passive income via decentralized hosting, the team is also working on CryptoPay, a user-friendly payment network intended to ease mass adoption of cryptocurrency, and another product which was known as, until last week, “Product 3.”

All of this is part of a plan to try to create a comprehensive Web 3.0 ecosystem.

The Substratum team built suspense by dropping hints in the run-up to the unveiling of “Product 3.” This led to lively speculation among the enthusiastic community of Substratum supporters as to what it might be. Guesses included a decentralized social network, a browser, or more tongue-in-cheek suggestions like “a square wheel” or “powdered water.”

Drum Roll, Please…

After several months of suspense, it turns out Product 3 is… a decentralized exchange (DEX).

A new DEX in itself may not seem too special, but according to the Substratum team, this one is different. The exchange, named Amplify, has some unique features like off-chain settlement which is still decentralized, reminiscent of Bitcoin’s Lightning or Ethereum’s Raiden networks.

The unique potential of this DEX, however, lies in the synergy between the exchange and the Substratum web hosting and CryptoPay payment networks.

Amplify — The New Substratum DEX



The name “Amplify” is a reference to the intent behind the new DEX, which is to increase the earning potential of people running Substratum nodes. Now, operators of nodes will be able to earn transaction fees by powering trades on the exchange with a new Proof-of-Stake token, AMPX.

Following in the ludicrously profitable footsteps of Binance, Amplify will offer discounts on the exchange for trades made using either Substratum’s native token, SUB, or AMPX to cover fees. The new exchange will include direct fiat to SUB pairs, ie. USD/SUB, among others.

The exchange will also have some features not yet available on the market, including trades that can be triggered by certain events, such as big price movements, without actually having to put an order on the books first.

Criticism

The new token also means another ICO – which has led to some questions, since the Substratum beta is barely functional at the time of writing.

We've made jokes about EOS doing a second ICO…Substratum is literally doing that. Guess $14,000,000 wasn't enough money to make a usable product…but I'm sure they'll get it right this time. https://t.co/K4PTO3ojNK pic.twitter.com/lRScz8UuHM — CryptoBasic (@CryptoBasicPod) September 1, 2018

The date of the ICO has not yet been announced, but it has announced that the team will not be accepting SUB for AMPX, which has raised eyebrows in the cryptocurrency community.

Substratum clearly puts quite a bit of effort into marketing judging by the high production quality of their media, and with the current bear market, it could be that they are feeling the effects of a high burn rate.

The team has promised to address these concerns in the near future with a series of videos addressing questions like:

“You mean you’ve abandoned SubstratumNode?”

“AMPX & SUB, why do we need both and how do they benefit from each other?

“How is the Amplify exchange different than anything there is today and how does it accomplish that?”

New Frontiers of Tokenomics

Given that a project like Substratum has a big base of supportive followers, most of whom are already using other exchanges, it makes sense for Substratum to get into the exchange game– they have a ready-made customer base that is sure to use the exchange.

By offering discounts for trades in SUB and rewards for running the DEX, the Substratum team will be generating further demand for SUB and now AMPX, which could potentially drive up price — and draw more attention and supporters to their budding cryptocurrency microcosm in the process.

With clever moves like these, Substratum is pushing the envelope to better leverage the potential of distributed ledger technology. Substratum’s plan certainly sounds good, and Amplify does exactly what the name implies — multiply the incentive structure of the existing Substratum beta infrastructure.

Of course, as many entrepreneurs are all too aware, good ideas alone are not enough to ensure success, so the coming months and years may be a real test of the commitment of both the Substratum team and their community of supporters.

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