Trans-Fee Mining Model: FCoin, the Chinese Cryptocurrency Exchange, is Leading the Industry
20 Aug, 2018, 01:24 ET
BEIJING, Aug. 20, 2018 /PRNewswire/ -- FCoin, a cryptocurrency exchange born in China, is changing the industry with its groundbreaking model "Trans-Fee Mining" and its revenue distribution.
Late this May, FCoin opened its official trading. Its unique "Trans-Fee Mining" model quickly gained notoriety and attracted a massive number of users.
In its initial stage, FCoin's team issued their ERC20 tokens - FTs (10 billion), 51% of which will be mined through "Trans-Fee Mining" mechanism.
The aforementioned "Trans-Fee Mining" is the mechanism through which the platform returns users' transaction fees the next day in the form of FTs. In order to get more FTs, some holders transact frequently, which therefore increases FCoin's trading capacity and improves its liquidity.
Meanwhile, FT holders can also receive portions of FCoin's revenue. 80% of the platform's daily revenue from transaction fees will also be distributed to holders the next day based on the proportion of the FTs held.
According to data from CoinMarketCap, FCoin's trading volume ranked first in the global exchange industry at one point. Not long after, other cryptocurrency exchanges started using "Trans-Fee Mining" and revenue distribution systems. "Trans-Fee Mining" is becoming an indispensable part of the exchange business.
Zhang Jian, founder of FCoin, sees this community as a test-run of a "Token Economy". "A token is a certificate of value on the blockchain. It is a great invention on par with the creation of company system."
Zhang Jian believes that every economic entity can be "tokenized". FCoin is the exact production of tokenizing a traditional exchange.
Early this July, FCoin launched its Tokenization Experimental Zone. This zone focuses on tokenization of large internet platforms, traditional industry and innovative global projects centered on Token Economics.
Having led the industry, Zhang Jian will try to continue his use of Token Economics through FCoin, changing traditional economics using blockchain and improving them through tokenization.
Zhang Jian was once the Chief Technology Officer (CTO) of Huobi - a well-known Chinese cryptocurrency exchange. His book, Blockchain: Defining the Future of Finance and Economics was a best seller among the financial books on one of China's biggest e-commercial platforms JD.com.
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