BitMax.io in the Crypto Exchange Space
BitMax.io (BTMX.io) is a 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 established itself as a clear leader in the crypto trading and exchange space.
Since its launch in August 2018, BitMax.io has enjoyed considerable success, growing its user base to over 50,000 and providing 39 active trading pairs to the public, with new trading pairs and listings currently under review.
Trans-Fee & Reverse Mining
Much of this success has been driven by BitMax.io’s user-centric innovations that incentivize more trading on the BitMax.io platform. One of these new trading models, known as trans-fee mining, allows traders to earn platform utility token, the BTMX token, whenever they trade on BitMax.io and pay for transaction fees. BitMax.io deducts trade transaction fees from traders and then credits their account with BTMX tokens of the same value. This is in stark contrast to the profit-first approach adopted by many traditional exchanges that simply deduct transaction fees from client orders.
Trans-fee mining was quickly followed by the introduction of reverse mining, separate unique incentive structure for Maker trades – which are trades that that have not been filled immediately partially or fully (like a limit order). Under this model, when a user executes a maker trade, the user will receive a rebate of the transaction fee in exchange for an equivalent market value of 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.
Reverse mining with trans-fee mining were formally launched to the public on Nov 18, 2018, along with the industry-lowest commission rate at only 0.04%. Along with new, strategic partnerships in the blockchain and cryptocurrency space, BitMax.io is steadily cementing its reputation as the world’s first 3rd-generation cryptocurrency exchange platform. These trading and exchange innovations also lead to smoother user experiences, tighter market spreads, and better liquidity as compared to the wider crypto exchange market, thus allowing traders to save in terms of fees and deductions.
Reverse mining and trans-fee mining models not only provide the additional value for traders and investors, but also help potentially support the price level for BTMX tokens on the secondary market while putting in place an important check-and-balance mechanism for stability and liquidity in times of volatility.
Reverse Mining in Practice
With traditional mining models, once the platform token (in this case, BTMX) is earned, the miner usually sells it in the secondary market in exchange for other paired cryptocurrencies. Since the trader continues to mine and sell his or her mining earnings in the form of BTMX, traditional mining is a one-way inflation model only on selling.
Over time, with the increasing number of platform coins in circulation, selling pressure rises dramatically until the market for platform tokens collapses.
BitMax.io’s innovative mining with reverse-mining mechanism, however, is a viable solution to the critical issues of selling pressure and inflation with multiple benefits.
Firstly, there is more up-to-date reflection of value creation with BTMX prices at any given point in time based on real-time mining activities. The longer-term lock up schedule combined with additional distribution of data usage fee pool based on daily transaction fee are designed further to enhance intrinsic value of BTMX from exchange operations as well as to manage overall token supply and demand.
Secondly, the reverse mining rebate offered to those with Maker traders acts as an incentive for them to provide more liquidity and depth of the exchange, the core differentiation for any successful exchange.
Thirdly, the unique design of additional transaction fee distribution to the token holders also support the overall stable level of BTMX toke price over longer term. This is managed through the setup of the Data Usage Fee Pool (“the Pool”). Every day, the platform will set aside 80% of net transaction fee revenue for the Pool and distribute back to token holders 1/180 of the Data Usage Fee Pool balance. Compared with traditional mining fee income distribution patterns, BitMax.io’s Pool will grow as mining activities continue. However, with the Pool, BitMax.io pays users for BTMX usage data, with 80% of BitMax.io’s net transaction fee revenue distributed back to token holders who sign up and agree to share their token transaction information with the platform. This provides additional incentives for users to hold BTMX tokens, and by holding tokens and not selling them, token prices become more stable, and more stability in token prices, in turn, encourages more mining as well.
In addition, mandatory lock-up for large-sell orders helps balancing the trading activities of BTMX on the secondary market as well as supports the sustainability of the BTMX token value in the longer run. With this requirement, BTMX holders and miners are also incentivized to hold their tokens rather than directly selling them on the secondary market.
BitMax.io’s team of Wall Street quant trading veterans has placed strong emphasis on fairness, liquidity, and transaction-driven income streams for traders of all sizes. Tighter spreads and different incentive structure for mining and reverse mining activities based on maker vs. taker. Trades are some of the major exclusive benefits for BitMax.io traders. BitMax.io is providing users across the globe with the efficient trading tools and services they need to further benefit from participation in the cryptocurrency market.