"Minar" negotiating: a new incentive model drives two exchanges to heights
The incentive model known as "trans-fee mining", in which a cryptocurrency exchange platform returns a percentage, or all, of the transaction fees to users using their own token, is beginning to resonate in the industry for the results obtained by two companies that, very recently, have implemented it.
According to the data provided by CoinMarketCap, two exchanges have just climbed to the top of the ranking by volume of operations in 24 hours, after having put into operation said reward model.
The figures indicate that the total for transactions in the last 24 hours of CoinBene, an exchange located in Singapore, is close to US $ 2 billion. The other platform that rose notably was Bit-Z, a Hong Kong operator, whose volume of transactions in the same period is close to US $ 1.5 billion; both platforms comfortably surpass the US $ 1 billion volume of the already dethroned leader of the classification, Binance.
This system of "mining", where the exchange rewards users with their tokens for the number of operations carried out on their platform, was initially introduced by the company FCoin, a new operator launched in the first quarter of the year by a former director of Huobi technology. The model was created as a way to encourage users to negotiate on the platform.
In the case of Bit-Z, according to your whitepaper , the exchange plans to produce its token, called BZ, with a limited total issuance of 300 million. For each transaction fee that a user pays to Bit-Z in the form of Bitcoin or ETH, the platform will reimburse the user 100 percent of it in equivalent BZ tokens.
According to press releases from both companies, CoinBene started with the "trans-fee mining" system on June 18, while Bit-Z implemented it just last Monday, June 25. The surprise increase in the volume of operations, product of the implementation of the new incentive model, catapulted both exchanges to the top of the lists by volume, just days after the issuance of their own tokens.
The specialized portal CoinDesk has previously reported that one of the problems associated with the recent model is that it could encourage users to create fake transactions using bots, in order to raise more of the tokens issued as a reward for the exchanges.
After FCoin's trading volume soared for the first time in the last month, the Chinese cryptocurrency media, as well as Binance, also intervened, claiming that the model is, in essence, an initial supply of currencies (ICO) and that The price of the token could be manipulated by the exchanges.
Zhao Changpeng, founder and CEO of Binance, also expressed doubts about whether the model is sustainable in the long term.
However, the news on the subject indicates that other exchanges are seriously considering the implementation of this new system, despite the criticisms. BigONE, a stock exchange backed by Chinese crypto investor Li Xiaolai, is taking action to adopt the model on its platform, as published on the company's website.