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In a recent tweet today, OmiseGo, the company behind the ERC-20 token OMG announced that it was way ahead of schedule and would be releasing staking coming Q1 of 2018.

In the blog article, OMG discusses their plan for the future and discusses their DEX protocol. The article starts off by making it clear that there is no new information about the returns or requirements for staking at this time. This information is highly important and is not released yet.  But what is released is a little information surrounding the fee structure of OmiseGo’s purposed DEX.

 

From the blog post:

However, there are some common misunderstandings about how fees work in an open, public blockchain, and we want to be very clear about what is and is not known at this point. At this stage, it’s probably most important to explain that there is no way for OmiseGO to control the fee structure. Fees are not controlled by any algorithm, or central party’s decision, but are instead 100% dynamically determined by supply and demand within the network….Transaction fees are paid dependent on network use, and revenue comes from both network usage and network growth.

 

This hits an important point. It seems like the DEX (Decentralized Exchange) that OMG is trying to build, will have a fee structure based off supply and demand. The more people using the DEX, the higher the fees. Once this DEX goes live, OmiseGo expects it to be the largest used liquidity market for altcoins on the planet. Basically, they want every user to use their platform to exchange one coin to another.  Some online discussions of Coinbase possibly having plans to use OmiseGo’s DEX have appeared online since this news appeared. Also talked about is the notion that OmiseGo, the parent company, will also be taking small profits from the DEX as well, as mentioned here:

People question whether Omise (OmiseGO’s parent company) will take further profit from the OMG network. The answer is yes, but only inasmuch as Omise is able to take advantage of the OMG network’s capabilities to improve the way we do business. If Omise is able to leverage the network’s capabilities to solve inefficiencies within our own operations, we can lower our own costs. If we are able to provide value added services to the payments we’re facilitating then that would be grounds for charging additional fees according to market rates (e.g. related consultancy work).

 

You can read the full blog article here: https://blog.omisego.network/omg-network-staking-returns-5744a23f4569

 

Price Increase

So for now, the price seems to be on a steep climb. Staking will allow users to lock their OMG away and get a set return over a period of time. This is highly sought after for a lot of investors who hold large sums of OMG. Some suggest the rate of return could be as high as $1-10$ per coin. Whether this is per day, week, month, or year, is unknown at this time.

Due to this announcement, the OMG token has risen to over $20 from around $15 within a day. The news is much awaited and ahead of schedule, so we can expect the OMG price to continue climbing as we get closer to launch. Currently, OMG is sitting at a $2 bln marketcap and ranked 23 on CMC.  No one knows what the price point will stabilize at, but it looks like OMG is going to be a hot coin in 2018.

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