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Network Effect | OXA's economic engine as a driver for adoption. - OXA Virtuous Cycle

OXA's economic engine as a driver for adoption. - OXA Virtuous Cycle

OXA's economic engine as a driver for adoption

The OXA token operates on the principle of network effects, where its value increases as the network expands and more users join the platform. As more users adopt OXA and actively engage with the OpenEXA network, the network effect amplifies the value and utility of the OXA. With a larger user base, the OXA token becomes more widely accepted and sought after, fostering liquidity and creating a vibrant ecosystem. Consequently, the increased usage and demand for OXA tokens lead to enhanced network effects, benefiting existing token holders by augmenting the value they derive from their holdings. Additionally, the growing network attracts more developers, service providers, and fund managers, further enriching the ecosystem and providing even more opportunities for OXA token holders to utilize their tokens within an expanding range of applications. Direct network effects occur when the value of a tokens, utility, or platform increases simply because the number of traders and users increases, causing the network itself to grow.

OXA virtuous cycle

Upon its launch, OpenEXA will serve as a lending market maker with the aim of fostering OXA adoption and establishing OXA as widely accepted tokens. OpenEXA will actively collaborate with existing crypto exchanges to promote the acceptance of OXA tokens. Additionally, OpenEXA will offer real-time valuation of AUT’s and OXA’s, transparent disclosure of asset composition, and ensure compliance with regulatory standards in the steps below.

  1. Kick Start: Upon its launch, OpenEXA's primary purpose is to function as a lending market maker to kick start the engine.
  2. Fostering OXA Adoption: One of the main goals of OpenEXA is to promote the adoption of OXA tokens. OXA token associated with the OpenEXA platform, and the company aims to encourage its usage and widespread acceptance within the crypto community.
  3. Collaboration with Existing Crypto Exchanges: OpenEXA intends to actively collaborate with other established cryptocurrency exchanges. By forming partnerships with these exchanges, OpenEXA aims to facilitate the integration and acceptance of OXA tokens on those platforms, thereby expanding the token's reach and utility.
  4. Real-time Valuation of AUT's and OXA's: OpenEXA will provide real-time valuation services for both AUT's (Assets under management) and OXA tokens. This means users can have up-to-date information on the value of their assets and OXA holdings, which is crucial for making informed investment decisions.
  5. Transparent Disclosure of Asset Composition: OpenEXA will offer transparency regarding the composition of the assets it manages or holds. Users will have visibility into the types of assets held by OpenEXA, which helps in understanding the risk exposure and overall investment strategy.
  6. Compliance with Regulatory Standards: OpenEXA is committed to ensuring compliance with relevant regulatory standards. This implies that the platform will adhere to the rules and regulations set forth by financial authorities to operate legally and ethically in the crypto space. By complying with regulations, OpenEXA aims to build trust and legitimacy within the broader financial ecosystem.

In summary, OpenEXA is positioning itself as a lending market maker that not only supports the adoption of its native token, OXA, but also aims to collaborate with other exchanges to increase its token's usage and acceptance. The platform will provide real-time valuation services for users' assets and OXA holdings while maintaining transparency about its asset composition. Furthermore, OpenEXA is dedicated to operating within the framework of regulatory standards to ensure a secure and compliant environment for its users.

OXA Virtuous Cycle – a core approach to building OpenEXA by starting with the fund managers on wall street and working backwards, rather than focusing on a product or service.

The network effect, also known as network externality, is a concept in economics and business that describes the phenomenon where the value of a product or service increases as more people use it. In other words, the utility or benefits that users derive from a particular product or service grow as the number of users in the network grows. In OpenEXA's case this positive correlation between the number of fund managers and the value of the OXA is at the core of the network effect.

The network effect can be observed in various industries and technologies, particularly in the realm of technology and the internet. Such as payment systems like PayPal and Venmo gain value from the network effect because the more users adopt these platforms, the easier it becomes to send and receive payments.

The network effect creates a powerful feedback loop: as more fund managers join OpenEXA, it attracts even more fund managers, leading to exponential growth in OXA and OpenEXA Platform, its value and reach. Understanding the network effect is crucial for OpenEXA's success, as it can be a key factor in the success or failure of OXA. Building a network effect requires creating a compelling user experience, offering valuable features, and attracting an initial critical mass of users to kickstart the virtuous cycle of growth and value creation. Upon its launch, OpenEXA's primary purpose is to function as a lending market maker to kick start the cycle.

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