Is the decentralized dividend model a future and promising trend ?steemCreated with Sketch.

in #cryptocurrency6 years ago (edited)


This year's overall cryptocurrency market is in a bear market, while new type of crypto asset issued by exchange platform (eg.FT, BNB) has risen against. The concept is that you can get dividends by holding an amount of the crypto asset platform. However each platform has a specific mechanism for calculating and distributing dividends .

This article describes the most innovative dividend model used as well as cryptocurrency trading platform (Fcoin) than video(FireBull) or game (Weirdfoxes) decentralized applications.

1. Trading is mining


FCoin is a innovative cryptocurrency trading platform which introduced the FT is the certificate token issued by the FCoin trading platform “Transaction is mining” concept.

“Transaction is mining” is actually a platform transaction fee refund mechanism based on cryptocurrency platform. Strictly speaking, before FCoin was established, there was already a similar gameplay. For example, Bibox had previously returned a certain percentage of fee income to the cryptocurrency platform holder.

FCoin's “transaction is mining” was repackaged, modeled on the distribution rules of bitcoin mining, and took out 51% of the FT tokens as a mining prize pool, gradually unlocked by “mining (transaction on FCoin)” FT, once 51% of the FT is fully given, “mining” is automatically terminated.
Trading is mining: Users who trade on the platform can get the deducted equivalent fee FT and return to the user the next day.
Multiply plan: By inviting friends, users can get 20% (previously 50%) of the FT generated by friends, so that the trade miner will register two accounts pairs by inviting friends, and get 120% FT rewards of the day.

This gameplay has great appeal to trading users, making FCoin's trading volume soar in the short term and the other two major cryptocurrency exchanges, OKEx and Binance followed suit and launched a similar “transaction is mining” game.


Fcoin's “trading is mining” and “multiply plan” are revolutionary innovations. It has achieved unprecedented success in attracting a large number of users. However, the FT dividend model cannot guarantee the continuity of new users, and the multiply plan cannot maintain the stability of the cryptocurrency price for a long time. The price of the exchange platform coins will go through the process of slump.

2. FireBull Video App


The FireBull video app is a short video application that can make money, it can not only capture short video recordings but also attract a large number of fans to reward your videos and get video dividends.

The distribution mechanism of FireBull is to use the transparent, queryable and non-tamperable features of blockchain technology to introduce token incentive mechanism to reward users:

Whether it is to publish video, like, forward or promote, you can get the reward of the FireBull token (FB), while holding the FB, can be directly distributed dividends. The FireBull distribute 50% of the token to the user, and all users who hold the FB can enjoy a dividend of 80% of the platform income.


One of the most important reasons for the hotness of the FireBull is the high return. In the case of a bear market, the 1% daily interest rate is really hard to resist. But this kind of dividend is just an aid in any case. Whether the platform can finally work or not depends on the strength of the team, whether the platform can attract big anchors and whether it can attract advertisers are the biggest problems facing the FireBull, and once it cannot be solved, the project will face failure.

The current fiery heat is only brought about by the money-making effect. If the platform has no way to rely on this for a long time, it is impossible to maintain the tens of millions of recharges every day. Once the number of people who have recharged is less, the dividends are lowered, and will the people who originally came for profit choose to stay?

3. Weirdfoxes games


Weirdfoxes, a blockchain multiplayer online pet simulation game, it is based on Ethereum, similar to Cryptokittes, which use dividend model like FireBull. Indeed, 80% of the platform revenue goes to the users who hold fox grass, while the fox grass is obtained by exchange of 1 Ether for 100,000 fox grass. The early 100,000 fox grass can get the dividend of 0.4 ether, and this 40% return rate lasts for 4 days, making small The fox has become popular in a short time.


Unfortunately, Weirdfoxes failed due to the fact that the team is not familiar with this dividend model. Indeed,, making the early dividends as high as 40%, which means that investors can be payback in 3 days, which is obviously unreasonable, compared to 1% of the FireBull.

In short

We have to admit that the decentralized dividend model has a miraculous effect, and perhaps more and more project parties will adopt this model in the future. However, this model does not guarantee the success of the project, and the risk is huge, because once the dividend model is adopted, most of the incoming users may only come for the dividends.

If the project party cannot transfer the user's attention from the dividends to the value of the project itself, then once the profit is gone, the users will also be scattered. Therefore, the project party should be committed to the project itself. With a clear development path, it may be possible to try this model after entering the promotion period, but it also needs to be rigorous. Otherwise, the early 40% dividend of WeirdFoxes suddenly drops to 5% then fell to 1%, which makes the project soon cool down, and all previous efforts will be in vain.

Check also our previous blogs:

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