Cryptocurrency Derivative Exchange BitMEX Gives More Details About Its Native Token.
Popular cryptocurrency derivative exchange BitMEX has released the light paper for its first native token, BMEX.
According to the exchange, BMEX will be used as an incentive to reward both old and new users, allowing them to get trade fee discounts, lucrative ROI on BitMEX Earn deposits, and early access to BitMEX newly launched services, among others.
In addition, large BMEX holders will be given better benefits in the form of getting invites to exclusive events such as BitMEX merchandise and VIP tickets to specific sports events, the light paper stated.
BitMEX Airdrops 1.5M BMEX to Users
At the time of writing, BitMEX has already airdropped 1.5 million units of BMEX to users based on their previous activities on the exchange.
However, Users will not be allowed to withdraw BMEX until the second quarter of the year, when spot trading of the token will officially commence.
In the meantime, BitMEX users can increase their BMEX holding from Feb 1, 2022, by engaging in more activities on the platform, such as staking and trading, the exchange disclosed.
BMEX is an Ethereum-based (ERC-20) token developed to enhance BitMEX users’ experience on the cryptocurrency trading platform. The tokens, which have a maximum supply of 450 million, will be locked into a five-year vesting contract.
BitMEX has designed an appropriate tokenomics solution for the BMEX token to help preserve its value.
Disclosing how the tokens will be distributed in its light paper, BitMEX noted that out of the 450 million BMEX tokens, 30% would be allocated as marketing rewards, while 25% would be kept as a long-term reserve.
In the same vein, 20% of the supply will be kept to provide liquidity, 20% will be allotted to BitMEX employees, and 5% for future airdrops.
As part of efforts to increase the token’s utility, BitMEX said it would be launching an initiative that will see it buy and burn the BMEX tokens every quarter.
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