BitMax.io Introduces Innovative Reverse-Mining to Incentivize Trading and Bolsters Exchange Liquidity
Friday, November 9, 2018 1:10 PM
NEW YORK, NY / ACCESSWIRE / November 9, 2018 / BitMax.io is a global operator of 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.
The BitMax.io project roadmap contains many innovative trading features that aim at delivering seamless user experiences, high liquidity trading, and cost-saving benefits to traders. BitMax.io has released a number of such features and continues to leverage the team's quant trading background and deep knowledge of capital markets to deliver latest trading and exchange features for its broad user base.
The first example of such features is BitMax.io's innovative "Trans-Fee Mining" model. In this model, instead of simply deducting the transaction fees from orders like how other exchanges charge, BitMax.io deducts the transaction fees from the users but then distributes back the BTMX tokens of the same value as the transaction fees to incentivize trading on the platform.
As the native token of the BitMax.io platform, BTMX tokens are paired with BTC and USDT and can be traded on the secondary market as well as used for additional benefits on the platform. In this way, traders actually reduce their transaction costs and can either hold or trade BTMX tokens on the platform.
The latest user-friendly and trader-focused exchange model is that of "Reverse Mining."
With reverse mining, you first earn trading commissions from BitMax.io through the execution of Maker trades. What is Maker trade? When you place an order that doesn't fill immediately partially or fully (like a limit order) and sits on the order book waiting to be matched, the trade (full or partial) is Maker trade. Then the platform deducts the equivalent market value of BTMX that you hold in the account. Once you return the tokens back to the platform, they become permanently locked in order to remove them from token circulation supply.
To put it another way, mining is the process of obtaining the BTMX token by simply trading on the platform and paying transaction fee for both Maker and Taker trades. Reverse mining is a separate innovative incentive structure for the Maker trades, the process for the Maker to return those tokens back to the BitMax.io platform and subsequently remove them from the market supply.
There are numerous benefits to reverse mining.
First of all, reverse-mining process essentially manages the overall supply of platform tokens by taking those back for Maker's trades and removing them from the market. Furthermore, there are certain lock-up rules on large-sell order to reduce the possibility of sudden influx of tokens on the secondary market, less sell pressure. Secondly, by holding on to your mined BTMX tokens, you can potentially have additional gain by returning (via reverse mining) your tokens to the platform at the higher market price later. Thirdly, by allowing people to trade BTMX on the platform, this also brings about higher liquidity to the secondary market.
In addition to these benefits, there is no upper limit as to the number of tokens returned via reverse mining, and by reducing the circulating supply and total number of tokens available, there can be more support for the stabilization of BTMX over longer period of time
Furthermore, the BitMax.io team has taken extra steps to think through and factor in many other different parameters during the design of reverse mining model and processes.
For example, the speed of mining is related to quantity of trading commissions on the platform, so these can be controlled to manage the rate of mining and reverse mining to benefit those maker trades. Also, reverse mining earnings are paid in real time, as opposed to standard mining earnings which are paid at the end of every hour. This is another market liquidity and trader safety measure that helps trader manage risk from high market volatility and price swings.
Furthermore, a specific transaction fee variable is introduced to adjust the ratio of transaction fees eligible for both mining and reverse-mining, subsequently the total quantity of BTMX from mining and reverse-mining. This variable is set every 10 minutes based on the actual mining rate in the past 24 hours and the target mining rate.
Overall, several noteworthy points can be highlighted with respect to reverse mining and overall BitMax.io as a global trading platform.
- BitMax.io's trading models are designed for broad-based users and traders. By allowing them to earn from the execution of trades (especially the Maker trades), and by providing them with all the relevant tools and safety measures needed, BitMax.io is redefining the very concept of user-friendly and high-quality online crypto exchange.
- By leveraging the team's expertise in the areas of traditional finance, capital markets, technology, and high-performance quant trading, BitMax.io is leading the revolution towards a truly fair, transparent and highly efficient trading experience for traders both big and small.
- By focusing on the liquidity and stability of the crypto trading, it also helps enhancing the cryptocurrency market structure and laying the foundation for future opportunities with more traditional and institutional investors as well.
With transaction mining, reverse mining, and other trading enhancements currently being developed by the BitMax.io team, a new wave of tools and services designed for high-volume trading and liquidity building-up are being introduced to the market. This strengthens BitMax.io's strategic position as a competitive market leader in the crypto trading and exchange space and will further work to benefit the platform's global user base in the near future.
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