In 2019, platform coins have become an important venue for exchange competition. What is the rise in platform currency? Allowing platform currency to deflate and reducing market liquidity seems to be the consensus of more and more exchanges. The repurchase of destroying and locking the warehouse has naturally become the two magic weapons for the platform to increase the value of the platform. Then, among the many platform coins, which one has the largest repurchase? Which of the lock-in rebates (dividends) activities have the most benefits?
In fact, we often need to polish our eyes to find the truth that is covered up, and the exchanges that seem to have the least amount of destruction on the surface are likely to be the most "spending money" in practice. The currency was repurchased with a 20% profit, but the team announced that it had abandoned 80 million BNBs. Another exchange, KuCoin, repurchased with 10% of its quarterly profit. Recently, it launched the KCS lockout rebate program, which sent millions of dollars to users in a hundred days, giving KCS locked users and destroying 13 quarters of KCS destruction. the amount. From the most "deduction" on the surface to the actual "squeaky", Babbitt takes you step by step to restore the truth.
Repurchase and destroy into standard, coin security, KuCoin most "deducted"?
In 2019, "repurchase and destruction" has become the main theme of platform coins.
The performance of BNB in 2019 is a good confirmation of the feasibility of repurchase destruction. From the beginning of the year, the US dollar has soared to the highest of 40 US dollars, the self-interest of the currency is a big factor, and the continuous promotion of the 20% profit repurchase mechanism every quarter is also indispensable.
The two major head exchanges, Firecoin and OKEx, also followed suit this year. 30% of the OKEx currency transaction fee is used for repurchase, and the first destruction was carried out in May this year. The fire coin also gave up the mechanism of repurchasing dividends, and took out 20% of the revenue of the Global Bank of Firebase every quarter for repurchase and destruction, and completed the first destruction in April this year. In addition, the fast currency channel FastTrack of the fire coin will also periodically destroy a part of the voting HT.
Compared with the three giants, the destruction of some new exchanges is even greater. The net red exchange BiKi performed its first destruction in May this year. Biki implemented 100% fee income for the repurchase of platform currency at the beginning of the platform currency BIKI, and was the first exchange to adopt this “extreme deflation” model. Another online red exchange MXC also successfully transformed, from “dividend + destruction” to 100% repurchase and destruction of the fee-based profit, and the first destruction after the completion of the policy change in July.
Data from various exchange announcements showing the source and frequency of repo as current current information
In the tide of repurchase and destruction, KuCoin is also a pioneer, and launched this plan almost at the same time as the currency. As early as April 2018, KuCoin completed the first KCS destruction. However, compared to 30% and 100% repurchase, KuCoin only took out 10% of its quarterly profits. It is inevitable that it is regarded as a “trick” exchange by many investors.
However, as the tide of platform currency repurchase has intensified, the two exchanges are also actively innovating. In order to alleviate the selling pressure, Coin Ann announced the abandonment of 80 million BNBs in the team's position during the latest repurchase. In July of this year, KuCoin announced the launch of an additional KCS repurchase destruction program. From July to the third quarter, before the new KCS program was launched, KCS encouraged the total amount of KCS to repurchase the same amount of KCS for destruction on Monday .
It is worth noting that KuCoin's current incentive policy is to spend 50% of the total transaction fee on a daily basis for repurchasing the platform currency KCS and distribute it to users in the form of KCS. With both the fire currency and the matcha abandoning dividends and turning them into destruction, it is highly probable that KuCoin will make major modifications or even abandon the existing incentive system in the future. In the competition with the destruction mechanism, the growing weakness of the dividend mechanism seems to have become a foregone conclusion.
Locking warehouses are good for dividends, but only KuCoin is the only one who spends more than 600 million yuan in a hundred days.
Repurchase and destruction has become the consensus of more and more exchanges. How to break through the model innovation has become an important issue for major exchanges. In 2019, the concept of Staking's economy was in full swing, and the entire industry was swept away. The model of Staking's lock-in interest seemed to bring more inspiration to the trading platform.
As early as March of this year, FCoin took the “sustainable mining”, the new income distribution plan and the “financial mining” to return to the end. According to the announcement, all FCoin platform coins FT returned by sustainable mining are locked for one year. In the new income distribution plan, FCoin still adheres to the principle that 80% of the platform's income is allocated to FT holders, but only allocates 20% of the previous day's distributable income, and the remaining 80% will be in the next year. Assigned on the 1st of the month. In addition, FCoin also took out 2 million FTs per week and allocated it to users above 10,000 FT.
The fire currency global station announced on July 25 that the on-line HT lock bin mining function. Locking bin users can obtain HPT airdrops daily according to the type of lock bin, the number of lock bins and the calculation of the fire currency pool. For users with 1000HPT or above, DPoS business profit can be obtained daily, including EOS and ONG. , IOST, ATOM, etc. At the same time, the HT-owned HT-owned airdrops will all enter the HPT airdrops.
On July 30th, KuCoin also launched a lockout destruction plan. In the month from August 1st to August 31st, the user locks the KCS for 90 days to get an annualized rate of return of up to 50%. The daily lock limit of the holders of the currency is 10000 KCS, the daily lock limit of the whole platform is 500,000 KCS; the total lock position reaches 5 million KCS, and the lockout rebate plan is terminated early.
According to KuCoin's data, on the first day of the event on August 1st, KuCoin released an additional 500,000 KCS locks, totaling 1 million KCS , due to the delay in the lockout address. These quotas were divided in 6 minutes and 6 seconds , totaling 284. If a person successfully locks the position, he can get 50% annualized income.
The three exchanges are firmly grasping the core of the lockout and dividends, in the form of dividends to encourage more users to actively lock the warehouse, thereby reducing the actual liquidity in the market, and promoting the platform currency with a temporary further deflation. The value is rising. The effect of locking the bin + dividends is also amazing. After FCoin launched the "locking warehouse", throughout the month of March, FT continued to rise, from $0.032 at the beginning of the month to $0.0976 on March 28, and surged 280% in 30 days. HT also continued this year's gains after the release of the news, once rushed to the annual high of 4.95 US dollars. KCS’s news of the lock-in rebate program rose by 20% . On the first day of the lock-opening on August 1, KCS broke through 1.7 USDT, reaching about 1.724 USDT, an increase of 5.8%. The recent week's low of 1.223 USDT has risen by more than 40%.
Compared to FCoin and Firecoin, KuCoin's lock-up plan is more positioned as a short-term plan, which means more snapping. 50% of the annualized income will have a large number of participating users, and because the actual panning is on a first-come, first-served basis, although the scheduled duration of the event is 1 month, it may be 10 days under the hot (5 million/50 Wan) is over. In addition, recommending a friend to lock the position, you can get an additional 10% of the friend's income as a recommendation reward , which can increase the number of participating users in a snowball manner.
At the same time, the ladder design of the rate of return, the large amount of rebates, also added a fire for the hot event. The earlier the lock is, the highest the return, up to 50%, and the lowest 35%. In other words, on the first day of activity (August 1st), the lock-up can get 50% of the income, and the next day, the income is 0.5% lower. In order to achieve higher returns, the user's enthusiasm will also be mobilized. It is foreseeable that the share of the first few days of the event is likely to have a "second grab" situation. On the first day, it was temporarily added to the quota of 1 million, and 6 minutes and 6 seconds was robbed. In the ideal case, the activity ends in 10 days, and the average annualized rate of return of the locked-box users is 47.75% , that is, KuCoin will provide users with 90/365*47.75%*5,000,000= 580,800 KCS revenue. According to the price of KCS 1.645 USDT at the time of writing, the total amount is 968,400 USDT, which is RMB 6.71 million . From the first day of activity to the end of the event, a total of 100 days. For a short-term activity, it is indeed amazing in terms of the strength of rebates.
In addition to the lock back, KuCoin still did not forget to destroy. According to KuCoin's official announcement, KuCoin will additionally destroy the same number of KCSs based on the number of KCSs (up to 5 million) that all users lock. In contrast, the KCS team only destroyed 375,366 KCSs in the second quarter of 2019. In other words, KuCoin may have to destroy 13 quarters at a time .
Considering that the lock position lasts for 90 days, despite the temptation of high-yield, many users are still worried about the fluctuation of the currency price. Drawing on Algorand's put option design, KuCoin set up a capital preservation repurchase mechanism in the lockout destruction rebate program. If the price of the currency drops sharply, after the user locks the position, the KCS of the locked position can be sold to KuCoin at the 10% discount of the average KCS price on the day of the lock . In other words, the user loses 10% of the maximum without losing the rebate. However, logically, under normal circumstances, large-scale lock-ups, rebates, and destruction plans often mean the appreciation of the platform currency. At the same time, in the current market environment, the probability of suddenly turning a bear into a bear does not seem to be large. Therefore, regardless of the accident, KCS may not have a large price dip.
Under this circumstance, compared with KuCoin, FCoin and Firecoin's lock bin dividends (mining) activities are quite satisfactory, which is a bit dull. In fact, the KCS lockout program is just one of KuCoin's recent moves. This well-known overseas exchange has been active and active recently. Earlier this month, the KuCoin Exchange launched the Soft Staking currency rebate service in an innovative way. Some DPoS/PoS token holders do not need to lock the position, free access, and can receive a portion of Staking revenue every day. Recently, the UpStake Pledged Coin Scheme was launched on the basis of Soft Staking. The EOSC is the first phase of the project. The number of recharges and the total amount of recharge can be met in the specified time.
The competition for platform coins has already become hot, and the major exchanges are also surprising. However, the continuous introduction of new models and new activities will also increase the expectations of users. How can KuCoin's large-scale KCS lockout destruction plan empower KCS, and the market will soon give an answer.