What Is District0x: Creating Districts of Decentralized Marketplaces

We’re increasingly living in a world where everything can be done remotely, from shopping online on Amazon and eBay to getting a gig on talent marketplaces such as Upwork and TopTal®.

However, despite the millions of users flocking to these sites to offer and obtain services, their true voices are rarely heard — since they neither own nor control these platforms.

But what if there were a way to decentralize such platforms and give power back to their users?

In this article, we’ll dig into district0x, a blockchain network using DNT tokens and the concept of a decentralized autonomous organization (DAO) to create user-governed marketplaces known as districts.

Let’s learn more!

What Is a Decentralized Autonomous Organization (DAO)?

A decentralized autonomous organization (DAO) is a blockchain-based governance structure owned by its community members who participate in voting for improvements to a protocol. DAOs are powered by smart contracts, which enable collaboration by its members in a decentralized way.

When a platform has a DAO structure in place, it decentralizes governance and ensures transparency in its operations. Members submit proposals on their desired changes, and the rest of the members can vote to execute them or not. The voting power is proportional to the number of tokens held.

One of the earliest DAOs to enter the market was MakerDAO, which was built on the Ethereum blockchain. Since then, different types of DAOs have arisen, offering a diverse range of applications for users.

What Is District0x Network?

District0x is a blockchain-based network of decentralized online marketplaces, known as districts, which are operated by community members without centralized leadership. These districts operate as DAOs in which individuals can vote using the platform’s native token, DNT, to decide on various operations and functions.

Fun Fact: District0X (pronounced “district-zero-ex”) derives its name from the districts, or marketplaces/communities, which form the building blocks of the network, along with the 0x prefix as a way to pay tribute to Ethereum, which uses these first two symbols for all its blockchain addresses.

Each district’s core functionalities are powered by d0xINFRA, a framework of open-source, Ethereum-based smart contracts and front-end libraries secured using BitTorrent’s InterPlanetary Filing System.

Aragon’s governance technology is at the core of the network’s DAO operations. Its user-friendly interface enables the creation, administration and governance of each district. The creation of a new district triggers a corresponding Aragon entity to facilitate all the governance processes.

Every district on the network is an online marketplace, with functionalities such as posting listings, a filter/search feature, and payment and invoicing, as well as ranking/reputation.

To enhance functionality in a district, the network allows the integration of auxiliary modules. These are third-party plug-and-play additions implemented independently by users specific to a district to add new features and functions, including monetization.

District0x was co-founded by Joe Urgo and Matus Lestan in January 2017. It was launched on the Ethereum Mainnet in June of that year with an initial coin offering (ICO) that raised 43,169 ETH, or around $9.78 million at that time.

District0x Network: How It Works

At the heart of district0x operation is the district creation platform, which is a user-friendly interface that deploys new online marketplaces on the network. By creating a district, decentralized marketplaces can benefit from:

• Increased visibility to the district0x community, which leads to adoption and growth

• Benefit from governance incentives through bonding curves

• Access and integration to Aragon for enhanced, decentralized governance

• Access to ancillary services, such as escrow

Creating an online marketplace through districts is easy and permissionless. Anyone can create their own district on district0x. All an individual needs to do is apply, and submit a request for consideration on the District Registry platform.

They will then be required to deposit DNT tokens and attach relevant links, logos, and descriptions of their marketplace.

If the district is successfully created, it’s entered into the District Registry.

District Registry

The District Registry is a decentrally maintained district whitelist of all marketplaces on the district0x network. The District Registry signifies that a district has been successfully registered on district0x, and can access its core functionalities.

Registered districts qualify to be included in the district0x Network Token staking interface. When staking tokens by using any of the three bonding curves available on the network, users gain voting rights to matters concerning their district.

By staking DNT, a corresponding entity is activated on Aragon, and the holder is issued with district0x voting tokens (DVT). Based on these tokens, the holder gains the right to vote on issues concerning the district, including external functionalities that need to be added.

Active Districts

There are three active districts on the district0x network. They are:

Ethlance

Ethlance is a blockchain-based freelancer website built on Ethereum. Launched in January 2017, it’s the first decentralized marketplace on district0x, and acts as the sandbox on which the d0xINFRA framework is based.

Unlike centralized task-based platforms such as Upwork, which charge users hefty commissions of up to 20%, Ethlance doesn’t charge any service fees. All users need is enough Ether to pay for the gas fees to apply for or post jobs on the platform.

Some of the jobs available on the platform include smart contract development, UI/UX design and DApp development. You’ll need to connect your web3 wallet to use the platform.

Name Bazaar

Name Bazaar is a decentralized peer-to-peer marketplace for the exchange of names registered through the Ethereum Name Service. Launched in October 2017, Name Bazaar was the second marketplace to deploy on district0x.

It provides a secure and trustless platform to trade ENS names without incurring extra costs. All transactions are powered using Ethereum smart contracts, which eliminates the need for middlemen.

Meme Factory

The third district, Meme Factory, is a self-governing platform for the creation, issuance and exchange of rare meme non-fungible tokens (NFTs). It’s powered by the Ethereum blockchain and uses an incentivized voting game called a Token Curated Registry (TCR) to govern the creation and issuance of memes on the platform.

Meme Factory allows creators to mint tokenized memes, and displays them on a bulletin board–style marketplace for trading.

Future Districts

At district0x, community members can submit ideas for the districts they’d like to be added to the platform. Using the district0x proposal voting DApp, DNT holders can participate in the district creation process in an open and transparent way.

District creation is ongoing for the addition of Stream Tide to the network. Stream Tide is a decentralized grants matching platform that amplifies financial support to creators through a quadratic funding mechanism.

What Is District0x Network Token (DNT)?

The district0x Network Token (DNT) is a utility-enabled token that powers district0x. The ERC-20 token is used to facilitate open participation on the network.

Its main uses are:

• Creation of new districts – When submitting applications for a new district, users are required to deposit DNT tokens for consideration.

• Voting – As a governance token, DNT is used to represent one’s share in the district0x governance structure, which utilizes an incentivized voting game on the District Registry.

• Staking – Once a new district is created, DNT token holders stake their tokens to gain voting rights on various matters regarding that district.

• Challenging creators – To prevent bad actors on the District Registry, a DNT holder can use their tokens to challenge the district creator’s spot. Other DNT crypto holders can vote to support or dismiss this challenge.

District0x Price Prediction

Following its launch in mid-2017, DNT’s price didn’t experience much activity. However, it experienced a significant pump in December, spiking from $0.045 on December 9, 2017 to $0.42 on January 6, 2018. Thereafter, the price declined gradually, stagnating for most of 2019 and 2020.

However, in October 2020, DNT’s price began to pump, reaching its highest price to date of $0.43 on April 19, 2021. The token’s price corrected after that, and continued to trade sideways in the following months.

DNT pumped slightly at the beginning of 2022 to hit $0.16 on April 4, 2022, but has since dropped significantly to below $0.05.

Technical analysts at CoinCodex believe that DNT could reach a maximum of $0.28 by 2024 and $0.63 by 2025. However, price forecast experts at Price Prediction hold a sluggish outlook, looking at a maximum price of $0.11 in 2025 and $0.75 in 2030.

Closing Thoughts

Decentralized markets are necessary in a world that’s now powered by e-commerce and remote working. By leveraging blockchain technology, district0x has created a framework that ensures the community has control over its marketplaces and can influence all functionalities in their districts.

As more districts are deployed on the district0x platform, its ecosystem will continue to grow, giving power to the people working hard to build an online presence.