What is district0x? (DNT)
The Beginner’s Guide
District0x is a software built on the Ethereum blockchain where users can create and host decentralized marketplaces and communities, called “Districts.”
Before decentralized exchanges such as Uniswap became popular, district0x aimed to solve various shortcomings in existing decentralized marketplaces by providing tools to help align incentives and decision making among participants.
District0x offers the core functionalities to operate an online market or community, such as the ability for users to post listings, filter/search, accrue reputations, and make payments, using d0xINFRA, a framework of Ethereum smart contracts and modules that aim to help developers create marketplaces within District0x.
Additionally, each district is managed by a governance layer provided by AragonDAO, an open-source software designed to create community-controlled organizations (DAOs) on the Ethereum blockchain.
Central to running operations on District0x is DNT, its native cryptocurrency used to access voting rights within each district.
For more regular updates from the district0x team, you can check out the district0x blog where you’ll find weekly updates, an archive of important posts, and developer updates.
Who Created District0x?
District0x was founded in January 2017 by co-founders Joe Urgo and Matus Lestan, who created Ethlance, a job marketplace built on the Ethereum blockchain.
In June 2017, district0x launched an Initial Coin Offering (ICO) that raised 43,169 ETH, worth about $9.78 million at the time.
The district0x project is supported by a company formed in San Francisco also called district 0x, where Urgo presides as CEO and Matus works as the technical lead.
How Does District0x Work?
To launch a marketplace or community, developers enter the ‘District Creation Platform,’ a user-friendly interface to help design and deploy districts seamlessly.
It enables developers to customize the parameters of smart contracts, choose between user interface (UI) options, and opt for auxiliary modules (“plug-ins”) with unique functionalities, such as searching and filtering, posting and listings, ranking and reputation and payments and invoices.
The District Registry is where all districts are deployed and listed on district0x. Importantly, each district listed in the registry is determined by a community voting mechanism.
To create their district, users must deposit DNT along with links, logos, descriptions, and a description outlining voting power dynamics for future stakers.
The district then gets listed on the registry, creating a corresponding Aragon entity that officially allows users to accrue voting rights. By owning and staking DNT, users gain the ability to vote on district upgrades, with each vote being proportional to the amount of DNT cryptocurrency they stake.
While the marketplace becomes a district upon creation, every district submitted to the registry is subject to being challenged by District0x users. Once challenged, a vote is called amongst all DNT holders to keep or kick the project. If kicked, the challenger and accompanying voters are rewarded with DNT.
District0x’s cryptocurrency, DNT, allows users to gain influence over the future of marketplaces deployed on its platform.
Users who hold DNT can stake the cryptocurrency to discern which districts are allowed to function within the platform.
Additionally, DNT can be used to acquire DVT, which represents voting shares within particular marketplaces. The district0x team created DNT with the idea that their platform would be owned and governed by its users, and it would grow to be a destination for developers to recreate popular applications and services.
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Why Use district0x DNT Coin?
You may find district0x appealing if you are looking to launch a marketplace controlled by a communal network, rather than a central authority.
The district0x project may also be appealing to developers who wish to create a marketplace with a user-friendly framework.
Examples of Districts built on District0x are Ethlance, a job market for freelancers and full-time job seekers, and Meme Factory, a marketplace for rare digital assets, also known as non-fungible tokens (NFTs).
Investors may also seek to add DNT to their portfolio should they believe in the future of online autonomous marketplaces.