Cryptocurrency Exchanges Deploying Trans-Fee Mining As Customer Incentivebr>
Trans-Fee Mining is a brand new approach for distributing a cryptocurrency exchange’s native tokens, while ensuring it benefits its respective community at large. Trans-Fee Mining is a transaction fee reimbursement structure, whereby the exchange users’ transaction fees are 100% fully reimbursed to back to the users in the form of the exchange’s native token.
For example, a user makes a trade on XYZ Exchange, utilizing any number of cryptocurrencies to pay the transaction fee. Afterwards, 100% of that fee valuation is reimbursed into the user’s wallet in the form of XYZ coin. This accomplishes two things: it revolutionizes the methodology of distributing an exchange’s native token and it entices users from other platforms to try your exchange – essentially void of fees. This method has already shown it can play a vital role in establishing a new exchange’s mark on the cryptosphere.
It has become increasingly more difficult for new exchanges to gain a foothold within the crypto market, especially during a downtrend like we’ve been witnessing in this current bear market. Most exchanges implement traditional incentives, such as referral systems, that encourage new users to bring in their own network of users. However, these payouts can be costly for exchanges, especially if you’re in early phases of rollout.
Furthermore, trade volume is a highly valuable metric that traders and investors are keen on following. By adopting a Trans-Fee Mining model, exchanges can encourage high trade frequency, increasing the exchange’s trading capacity, ultimately improving its on-hand liquidity. The price movement of an exchange’s native token could alone usher in countless new registrations, if marketed and released properly.
Could Trans-Fee Mining be the new standard for new exchanges with in-house tokens? This is something that we’ll likely be seeing pop up more in the future as digital assets continue to rise in both market cap and global awareness.