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Which exchange is best for you and the ethereum bridge explained

Benefits of Holding Lucky Block on a Centralised Exchange (CEX):

  • Marketing Exposure to the exchanges community
  • Able to deposit fiat to buy LBlock
  • Easier for newbies to purchase directly via an exchange.
  • Hacks or lost tokens can be covered by the CEX
  • Possible to day trade without 12% tax
  • More volume to the token
  • More holders due to large exposure
  • More tokens sold and in circulation which verifies the market cap
  • Because our circulating supply is more easily verifiable, Coinmarketcap is able to track our market cap. As a consequence of this, Lucky Block’s ranking on Coinmarketcap will increase significantly.

The benefit of moving your tokens to a centralised exchange is if you are looking to trade Lucky Block on a daily basis. There are plenty of day traders out there that will be looking to do this and it helps create volume within Lucky Block and the exchange itself. Day traders will mainly look to profit from trading around support and resistance areas.

If you are looking to day trade, bear in mind that moving your tokens to a centralised exchange from a decentralised exchange means you will incur a 12% tax. To re-emphasise, the tax only applies when you move your tokens to a centralised exchange from your Trust Wallet (TW), Metamask or equivalent. There is no tax to pay when you transfer from the centralised exchange back to TW. Also, there is no tax to pay when trading on a centralised exchange.

The reason the tax is there is so that people do not buy Lucky Block on Pancakeswap and then move it to LBank or any other centralised exchange, where they can then sell Lucky Block with no 12% tax fee. The effect of this would be to deplete the liquidity, jackpot and royalty pools. Less liquidity and a reduced jackpot pool means less money to pay for marketing.

Benefits of holding Lucky Block on a Decentralised Exchange (DEX):
  • 4% Games Pool / 4% Liquidity Pools / 3% NFT & Gaming Royalty Fund 1% Token Burn / 12% Transaction Fee on Sale
  • The key benefit of holding in a DEX is when the draws start, 10% of the jackpot pool will be distributed to the token holders. You need to hold tickets in order to purchase tickets to enter draws and other games.
  • To play our games you will be required to hold tokens in a decentralised wallet and use them to purchase a ticket. The reason for this is because our games are cashless and decentralised.
  • A DEX is ‘trustless’, which means that users’ funds and personal data are safer than when taking the storage on a CEX route, where clients are dependent on the security processes and infrastructure operating at the trading venue. Centralised exchanges are frequently hacked. When connecting your wallet to a DEX, your security and privacy are well preserved. You, the owner, not the centralised exchange, have direct control of your private key (put simply, your seed phrase).

V2 Ethereum bridge upgrade and CEX/DEX token versions

Lucky Block will soon have two tokens joined by a bridge that maintains price parity between the two versions and does not alter circulating supply.

V1 LBLOCK token = DEX, play games, get rewards, tax on sales

The original Binance Smart Chain-based (BEP20) version of the coin remains unchanged from the viewpoint of existing holders of the token on decentralised exchanges and in self-custody wallets.

The BEP20 token (V1) will be used to play the games, receive rewards and pay 12% tax on sales.

V2 LBLOCK token = CEX day trading, no tax, no rewards

A new Ethereum-based (ERC20) LBLOCK token (V2) will be issued for those who wish to trade and hold LBLOCK on centralised exchanges. It is purely for day trading.

The V2 ERC20 token will only be listed on centralised exchanges and will not attract any taxation, be they sell or buy transactions.

However, the V2 token does not receive rewards from the games pool and cannot be used to purchase games tickets.

V1 is for DEX, V2 is for CEX

So to summarise succinctly, if you want to play the games and receive rewards you must use V1.

Alternatively, if you only want exposure to the price movements of LBLOCK and are therefore only primarily interested in day trading then you must hold the V2 version of the token.

How the bridge locking works

In terms of how the bridge itself works to maintain the same price across both versions of the token and leave circulating supply unaffected, a locking mechanism is being employed.

When the Ethereum-based V2 token is purchased, the same amount of Binance Smart Chain-based V1 tokens will be locked. And it will be the same for trades in the other direction: when V1 is purchased a corresponding amount of V2 will be locked.

Existing BEP20 contract address remains unchanged

Also, the current contract will remain in place, so there will be no need to import a new contract address.

However, a new Ethereum contract will be added. Centralised exchange LBank, which lists LBLOCK, has confirmed that it will release a detailed announcement, in coordination with Lucky Block, concerning the upgrade and migration process and how it will enable users to swap the V1 token held on LBank to the V2 version.

Both the ERC20 and BEP20 contracts will run side by side, with the price maintained via the bridge.