As the cryptocurrency market expands, cryptocurrency exchanges are in cutthroat competition. The exchanges are looking to draw in customers with each of their own differentiated strategies. One of these strategies and services is ‘transaction mining’. Some exchanges provide self-issued tokens to customers as a reward for their transaction.
However, some worry about transaction mining saying that the indiscriminate issuing of coins will lead to heavy consequences. Some exchanges actually failed after introducing transaction mining.
COO Garrett Jin of BitForex, which is the exchange that introduced the transaction mining system, argues that the exchange’s reward to customers is also a meaningful model in the cryptocurrency world and when it is well-coordinated, it will be effective at the VIP reception of “Tokenizeit 2018 fall”, global block-chain conference held in Seoul, Korea from 9 to 11th September.
He announces the number of tokens issued from the mining will decrease at the time when transaction mining is continued for 3 months straight according to BitForex demonstration monitoring. It is because transactions targeting tokens due to mining is to be reduced around after three months, under the assumption of transaction being sustainable.
The system of BitForex is designed to be given 120% of the transaction interest fee in BitForex self-issued BF token.
“Since August 1st of this year when BitForex introduced the transaction mining system for rewarding, its creative transaction mining system has been running well,” he stressed.
A second key success factor for sustainable transaction mining system, he pointed out the repurchase plan. “A thorough observation after launching the system, BitForex has decided that 80% of the transaction mining fee will be used to repurchase BF Token back from the market.” He added that the BF repurchased will be locked up aimed at securing the scarcity of BF token.
“We are able to read from the monitoring that most important key to succeeding in this system is how quickly you change with decency to keep the profit of users,” Mr. Garrett explained. And he promised that BitForex values every user and tries their best to support all project participants.
BitForex is a fast-growing global exchange positioned as top 3 in terms of daily trading volume. It provides service to users in 186 countries. BitForex focuses on localizing the product and services to provide better service. In line with this strategy, it moves fast when deciding on localization in certain markets. Also, it prefers to run a foreign branch with 100% ownership because of strategic alignment.