Newly introduced “trans-fee mining,” despite a few criticisms of the method from industry insiders, the revenue model is beginning to change the cryptocurrency exchange landscape.
After working out trans-fee mining for users, two exchanges have reportedly gone up to the top of the 24-hour trading volume rankings.
Singapore-based CoinBene’s 24-hour trading volume, as per the data, is now approximately $2 billion, while the figure on Hong Kong’s Bit-Z is close to $1.5 billion. Both mentioned is higher than the previous leader Binance with $1 billion in volume.
In May, FCoin was launched by a former chief technology officer of Huobi. It highlighted the trans-fee mining model viewing crypto exchanges issue their own tokens as a way to incentivize users to trade on the platform.
Regarding its white paper, Bit-Z intends to construct its BZ token with a capped total issuance of 300 million. A user pays to Bit-Z for every transaction either in the form of bitcoin or ethereum, the platform will refund the user 100 percent of the cost in its token.
The Chinese cryptocurrency media together with Binance contemplated the accusations, just right after FCoin’s trading volume first increased in the last month, that the model is an initial coin offering (ICO) and that the exchanges could be manipulating the token’s price.
Though criticisms regarding the issue are non-stop, this does not discourage exchanges from adopting trans-fee mining.