0x begins voting for major upgrades in v3

Today marks the start of a three week long process where 0x ($ZRX) holders can vote to approve changes made in v3 of the protocol. Potential changes include the introduction of stake-based liquidity incentives for market makers that compensates those adding liquidity through small fees paid by takers. In addition, liquidity bridges across other decentralized exchange (DEX) platforms such as Kyber and Uniswap enable 0x to source the best prices for a wider range of trading pairs.

Why it matters:

• While aggregate DEX volume remains minuscule compared to centralized exchanges, there are a lot of infrastructural improvements happening that could help bridge the gap. Improved incentives for market makers and liquidity aggregation can provide tangible benefits such as deeper order books and decreased slippage (shown below) which in turn could bring more traders.

• ZRX has been marketed as a governance token and now its utility can be put to use. Allowing the community to make crucial decisions on upgrades is an important step to validate the efficacy of decentralized governance.