BitMEX, a cryptocurrency exchange, released the light paper for its native token, BMEX, ahead of its launch.
BMEX was airdropped earlier this month, with the welcome campaign giving both new and existing verified clients the opportunity to get the airdrop by subscribing to BitMEX EARN, the platform’s passive earning product. Trading activities and inviting other users are two more ways to obtain the BMEX token. However, this is a short opportunity, as the token airdrop’s Phase 1 will run from now through early Q2 2022.
Users can now stake BMEX, and spot trading of BMEX tokens will begin in early Q2 after the exchange’s launch.
BMEX was first announced by BitMEX in December of last year. It now joins the ranks of numerous other cryptocurrency exchanges that provide native tokens, including Binance, FTX, and Crypto.com.
The BMEX Token, according to BitMEX, will be at the heart of the BitMEX ecosystem, with BMEX holders receiving a range of perks.
“Crypto investors demand convenience, performance, and the freedom to choose a platform that best suits their needs,” reads the litepaper breaking down the purpose of the token.
BitMEX is “pursuing an ambitious expansion plan that will see us [BitMEX] offer a range of additional goods and capabilities” to meet market demand, according to the exchange.
BMEX tokenomics
The BMEX token, an Ethereum-based ERC-20 token will have a maximum supply of 450 million vested over five years.
Five percent of the tokens are set aside for future airdrops, twenty percent for liquidity when BMEX spot trading launches, twenty percent for BitMEX staff incentives and performance rewards, thirty percent for marketing and affiliate rewards, and twenty-five percent as a long-term reserve.
During the first phase of the launch, BitMEX users will not be able to withdraw the token, according to the exchange.
BMEX holders will be eligible for savings on trading fees and preferential rates on BitMEX derivatives and spot exchange.
Furthermore, the token will provide enhanced staking rewards on BitMEX EARN deposits, as well as early access to new products and participation in Initial Exchange Offerings (IEOs) (IEOs).
“We’re establishing a true crypto investing environment,” BitMEX said, adding that “crypto is still expanding, and much of the infrastructure that will enable it to be all-encompassing, democratic, and more user-friendly has yet to be constructed.”
BitMEX revealed plans to purchase Bankhaus von der Heydt, a 268-year-old German bank, last month in an effort to gain a regulatory foothold in Europe.
While Germany’s Federal Financial Supervisory Authority (BaFin) has yet to approve the agreement, the exchange is already previewing new items it wants to introduce in the near future.
These include an over-the-counter trading desk (OTC) and banking bridges, in addition to a spot trading exchange, to facilitate the movement of assets into crypto. Later on, BitMEX plans to establish a separate platform to engage with and invest in sporting clubs, social groups, Web3 initiatives, and metaverses, with the goal of expanding its product portfolio and increasing BMEX token acceptance.