BitMax.io’s Innovative Token Economics Maximize Platform Liquidity & Trader Utility

Nov 16, 2018 at 18:06 // PR
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With its relentless focus on transparency, reliability and quality of execution and client services, BitMax.io has clearly established itself as a reputable leader in the crypto trading and exchange space as the next third-generation digital asset trading platform.

BitMax.io (BTMX.io) is the global operator of an innovative digital asset trading platform with a broad range of products and services for global retail and institutional clients.

With its relentless focus on transparency, reliability and quality of execution and client services, BitMax.io has clearly established itself as a reputable leader in the crypto trading and exchange space as the next third-generation digital asset trading platform.   

Comprised of a team of financial experts with experience in top-tier Wall Street institutions such as Deutsche Bank, Barclays Capital, Morgan Stanley, and Goldman Sachs, as well as highly skilled technical leaders with academic credentials from renowned global institutions such as Columbia University, the University of Chicago, and Peking University, BitMax.io has attracted strategic investment from top venture capitals such as  Matrix Partners China, BitMain, FBG Capital, and Danhua Capital. By leveraging the team’s expertise in the areas of traditional finance, capital markets, technology, and high-performance quant trading, BitMax.io has introduced ground-breaking innovative trading tools and services meticulously designed for high-volume trading and liquidity build-up , and revolutionizing the way the world deals with crypto trade and investment.   

One example of an innovative trading design introduced by BitMax.io is the “Trans-Fee Mining” model. Under this model, when a user makes a trade, BitMax.io deducts trade transaction fees from users but then distributes back the platform’s native BTMX tokens of the same value in order to incentivize trading on the platform. This differs from simply deducting transaction fees from orders, which is how most other exchanges operate.   

Another user-friendly, trader-focused model introduced by BitMax.io is “Reverse Mining”. While trans-fee mining results in the creation of BTMX, reverse mining is a separate unique incentive structure for Maker trades – which are trades that that have not been filled immediately partially or fully (like a limit order) and sits on the order book waiting to be matched.  Under this model, when an user executes a maker trade, the user will receive a rebate of the transaction fee in exchange for an equivalent market value of the platform’s native token BTMX that the user holds in their account. The deducted BTMX tokens are then put into permanent lock-up, effectively moving them from the market supply. These types of innovation not only support the pricing for BTMX tokens on the secondary market, but also act as the important check-and-balance measures for the stability and liquidity in times of market volatility.    

In order for such design to work effectively on global scale with great transparency and fairness to all traders, BitMax.io has devised a comprehensive token lock-up and distribution rules.    

BitMax.io Lock-up Rules      

Once the Transaction Mining model is launched, BitMax.io will impose a mandatory lock-up for large-sell orders. This will help to balance trading activities of BTMX on the secondary market and support the sustainability of the BTMX token value in the long run.

Mandatory lock-up parameters are as follows:

  • The limit for Daily Net Sale of BTMX (not including the return of BTMX from Reserve Mining) is 300,000 BTMX tokens. For every single BTMX token sold above this limit, three BTMX tokens will be locked up for 30 days. During the 30-day lock-up period, 1/30 of the lock-up amount will be released on daily basis.

For example, if a user has a daily net sale of 303,000 BTMX, then 9,000 BTMX in the user’s account will be subject to a 30-day lock-up, with 300 BTMX released daily.

  • The hard cap of Daily Net Sale of BTMX (not including the return of BTMX from Reserve Mining) is 600,000 BTMX. Daily net sales over 600,000 BTMX are not permitted.
  • Daily Net Sale figures for BTMX are calculated after accounting for any account transfer-out, internal account transfers, and pending sale orders of BTMX.

BitMax.io Distribution Rules   

To build better trading analytics, BitMax.io will pay for BTMX usage data collected from users. Data to be collected includes data on mining, execution prices, and other token circulation information. 80% of BitMax.io’s net transaction fee revenue will be distributed back to token holders who sign up and agree to share their token transaction information with the platform. Therefore, this will provide additional incentive for users to hold BTMX tokens.

Please note that:

  • Only BTMX tokens held in the accounts of BitMax.io are eligible for calculation.
  • BTMX tokens in circulation, as well as those in mandatory lock-up are in the scope for distribution.
  • Only those token holders who have reviewed and accepted the “BTMX Token Terms and Conditions” are eligible for participation in this initiative.
  • Tokens not yet released or in permanent lock-up are NOT eligible for inclusion to distribution.

Stabilization Mechanism   

In order to adjust the daily distribution rate of BTMX with the platform transaction fee schedule, a stabilization mechanism will be introduced by setting up a Data Usage Fee Pool. The platform will set aside 80% of net transaction fee revenues on a daily basis for the Pool and will distribute 1/180 of the balance back to token holders.  

To clarify these calculations:   

The Daily Deposit into the Data Usage Feel Pool is equal to: Daily Net Transaction Fee * 80%   

The Daily Distribution of the Pool is equal to: Daily Data Usage Fee Pool Balance / 180   

The Individual Share of Platform Transaction Fee Distribution is equal to: Daily Distribution of the Pool * (24HR Weighted Average BTMX position / Aggregation of Total User Effective BTMX Position)   

Settlements   

Daily settlements will start at UTC 00:00 based on the previous 24-hour distribution amount, and the disbursed amounts will be booked and reflected in individual accounts on BitMax.io by the end of the day. Furthermore, the distribution of platform transaction fees will be settled in the currency form of the transaction. For example, the distribution of ETH transaction fees executed on the platform will be credited into individual accounts in ETH.   

BitMax.io reserves the final right of adjustment and interpretation of the Distribution Rules of Platform Data Usage Fee.   

From ingenious mining designs to value-driven token distribution economics, BitMax.io is redefining the tools and services that are truly user-friendly and beneficial to traders, especially from building economic value from longer-term perspective.  As critical components of BitMax.io vision of delivering fair, transparent, and highly efficient trading services to global users and traders, its trans-fee mining, reverse mining, and user-friendly token distribution protocols will help pave the way for BitMax.io to cement its leading position in the crypto exchange space as the next third-generation digital asset trading platform.

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