Dota Project Progress Report Issue 1: Protocol Standards, Indexer, Marketplace, and Treasury Proposal
First of all, we apologize for the lack of information synchronization previously, which caused the community to lack a timely understanding of the specific development plans and progress. Now that we have established this forum, we will synchronize the various tasks here in a more organized and orderly manner. Additionally, everyone can suggest ideas for the project’s development, propose concepts, or even seek suitable teams and resources to freely develop and operate within the dota ecosystem.
Let’s introduce and define the dota ecosystem before looking at the progress of each part:
Foundation Layer: Protocols, Inscriptions, Index
1. dot20 protocol: This is a foundational protocol similar to ERC20. It defines the standards and functions for inscriptions deployed based on the dot20 protocol. Once perfected, it will be fully open for everyone’s use. In the future, more protocols like dot721 may emerge to define different foundational standards within the Polkadot inscription ecosystem.
2. $DOTA Inscription: Based on the dot20 protocol, this inscription is minted in a completely fair mode. However, unlike tokens, inscriptions rely on protocols and indexers for free circulation and further development. Once the standards and indexes are perfected, they can be openly built like tokens.
3. Indexer: The index is what distinguishes inscriptions from tokens. Tokens can be used once issued, but inscriptions require an index to interpret their inscribed information before application. The indexer is also one of the most critical aspects of activating and developing inscriptions. Once the indexer is open-sourced, whether it’s a Marketplace, DEX, or CEX, all can freely connect and develop, and inscriptions can be freely deployed.
Product Layer: Marketplace, Launchpad, etc.
1. Marketplace: A relatively independent product, it mainly provides a trading venue for inscriptions. In theory, anyone can develop and deploy a Marketplace based on the index, or trade through centralized or decentralized exchanges.
2. Launchpad: An independent product. General deployment can complete the issuance of inscriptions, but Launchpad can become a channel for issuing quality projects through rules, governance mechanisms, etc.
Thus, the development of the Marketplace depends on foundational settings, mainly including protocol perfection and indexer improvement, both of which need to meet open-source standards. Another challenge for the Marketplace is solving the double-spending problem. Since inscriptions interact both on-chain and off-chain, there’s a possibility of asynchrony between on-chain execution and off-chain information. For example, if two people buy $DOTA at the same time on-chain, both $DOT payments go to the seller’s account, but only one buyer gets the $DOTA.
Since Polkadot’s relay chain doesn’t have smart contracts or a BTC network UTXO-style solution, there’s no decentralized solution to fork. Some inscription Marketplaces facing the double-spending problem have constructed an “intermediary” where trades are matched by this intermediary. If the above problem occurs, the intermediary refunds the unsuccessful buyer.
This is a very centralized product solution, which doesn’t even rely on an index. It can solve the immediate problem but will face obstacles in later application expansion and has high centralization risks. Therefore, Dota’s current developers propose an innovative inscription-level Marketplace solution: iDOT.
Dota Marketplace Product Solution The fundamental issue of $DOT trading $DOTA causing double-spending is that they are not assets of the same standard or confirmation path. $DOT is confirmed on-chain, while $DOTA’s confirmation requires both on-chain and off-chain indexing. The fundamental solution is to inscribe $DOT, creating $iDOT: inscribed DOT. This way, $iDOT and $DOTA can execute unified standards and paths, forming atomic-level, bidirectional trading.
Benefits of this product solution:
- Fundamentally avoids double-spending and decentralizes the trading process.
- Atomic-level bidirectional trading, allowing for trading between any inscriptions.
- Introduces stablecoin trading pairs, like inscribing USDT.
- Integrates $DOT staking earnings from Polkadot, allowing iDOT to accrue interest.
This solution not only avoids double-spending but also lays the foundation for pure inscription DeFi by introducing stablecoins and staking earnings schemes. The challenge is that there’s no solution to fork, and it needs to be built from scratch.
Development Plan: Current Dota development is divided into two main parts: Index and Marketplace, simultaneously developed by two groups of builders.
- Indexer 2.0 and iDOT, Signature Service development progress (Weaver Group in charge):
- dot20 protocol upgrade (completed, DOT20 - The Fungible Inscription standard (draft) - Polkadot Inscription Standard)
- On-chain data parser (completed, entering testing)
- Development of mint, deploy, approve, transfer, transfer_from functions according to the upgraded dot20 protocol (in progress)
- iDOT inscription forging and transfer functions (pending)
- On-chain authorization signature service and management service (pending)
- Marketplace development progress (Clock Group in charge):
- Trading market function development (in progress)
- UI/UX design (completed)
- API service and front-end deployment (pending)
- Trading function testing (pending)
The Marketplace will be integrated after the index is completed, with parallel development. Apart from the Marketplace, DEX and CEX integration can start after the index is completed, allowing for multiple trading methods.
Apart from development, Dota’s Treasury proposal will enter the on-chain voting stage. Before the on-chain vote, we will initiate the organization of the multi-signature committee for fund management. If the proposal is approved, all funds will be managed by a multi-signature address.
That’s the current progress and development status of Dota. We will continue to synchronize the development of the Index and Marketplace here.