The Brilliance Behind BitMax: Understanding the Trans-Fee Mining Model

BitMax.io (“BitMax”) is a new autonomous digital asset trading platform that functions as a universal operator of crypto exchanges, providing cryptocurrency trading services to a broad clientele including institutions, professional traders, and private investors.

As the demand for digital and crypto-assets grows, the long-term success of trading platforms is dependent on several factors including architecture design, scalability, ease of use, security, and the handling of highly-volatile market conditions.

BitMax.io (“BitMax”) is a new autonomous digital asset trading platform that functions as a universal operator of crypto exchanges, providing cryptocurrency trading services to a broad clientele including institutions, professional traders, and private investors. BitMax prides themselves as having the lowest transaction fees in the industry at 0.04%.

Founder George Cao graduated from both the University of Chicago and the University of Science and Technology of China. After receiving his Ph.D. in Computer Science, George worked at Wall Street Knight Capital and Barclays Bank specializing in quantitative trading and venture capital. Later, as CEO for the quantitative trading fund Delpha Capital Management, George successfully identified, invested, and incubated several blockchain projects in New York.

BitMax has attracted the attention of many top crypto venture capital firms including FBG Capital, BitMain, Matrix Partners China, DHVC, GBIC, Perseverance Capital, and Palm Drive. They reportedly collected over 17,000 followers on their Telegram and WeChat social media channels within the first 10 days of operation.

To better understand how and why BitMax has received so much attention, it is important to reiterate their unique position in the market. BitMax supports financial derivatives such as late leveraged trading and is the world’s first digital asset exchange with multiple mining mechanisms including the transaction-fee based “Trans-Fee Mining” model.

The Trans-Fee Mining model works by reimbursing trading fees to traders in the form of the exchange’s own tokens. The more traders trade, the more tokens they receive, hence the term “mining”. The Trans-Fee Mining model is an effective incentive mechanism to drive volume to exchanges, pushing the exchange token’s value higher and converting users to traders. Additionally, BitMax’s transaction fees are the lowest in the industry at 0.04%.

BitMax understands that while the Trans-Fee Mining approach will help drive short-term token performance, it cannot be solely relied upon to support a healthy token economy; risks must be mitigated to prevent a pump and dump of the exchange’s token. In response, BitMax has come up with a clever lock-up and recall mechanism to prevent their tokens from being undersold. These two key strategies help to mitigate risks and protect BitMax investors.

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