Leading exchanges and wallet providers such as Binance and Bittrex have confirmed support for upgrade
Shanghai, China — Loopring, the open-source protocol for building decentralized exchanges, has announced an upgrade to its LRC token smart contract that will introduce burn rates and further its goal of enabling fee payment in any ERC20 token. The upgrade, which is scheduled for 00:00 to 24:00 Beijing time on May 8th, will enable the LRC smart contract to reflect reduced LRC supply in real-time as LRC tokens are burned by Loopring’s fee model. A number of leading exchanges and wallet providers, including Binance, Bittrex, and OKEx have already confirmed support for the upgrade.
Loopring’s fee model, which was introduced at the end of 2018 with Loopring Protocol 2.0, allows traders to pay network fees in an ERC20 token of their choosing, whether it be the token they are buying, selling, or a third token not involved in the trade at all. Prior to the introduction of this fee model, users needed LRC to pay trading fees to DEXs. The new fee model reduces friction and guarantees flexibility for all parties involved.
LRC, Loopring’s protocol token, is utilized to coordinate the network and provides users with a number of benefits. Following this upgrade, a small percentage of each fee payment will be “taxed” and directed to a holding smart contract called Fee Holder. Due to the fact that traders can opt to pay network fees in whatever ERC20 token they choose, this smart contract will inevitably end up holding an assortment of different ERC20 tokens. These tokens will be auctioned off for LRC, and the LRC that is purchased will be burned. Fee-earning participants (Wallets, Order Matchers) who earn network fees in LRC rather than another token will benefit from lower burn rates, enabling them to keep more of their earned fees.
Commenting on the upgrade, Daniel Wang, Founder and CEO of Loopring, said,
This upgrade takes Loopring one step closer to achieving our goal of underpinning the trustless token trading systems of the future. In combination with Loopring Protocol 3.0, we are drawing ever closer to the emergence of truly functional decentralized exchanges that will provide considerable benefits to cryptocurrency traders around the world.”
Additional information about the upgrade can be found here: https://medium.com/@matthewfinestone/7cd6095ed4eb
Loopring recently announced its Protocol 3.0 which utilizes zero-knowledge proofs to significantly increase throughput for decentralized exchanges.
For more information about Loopring and Loopring Protocol 3.0, visit https://loopring.org/ and https://github.com/Loopring/protocols/blob/master/packages/loopring_v3/DESIGN.md