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Transmining 101: The Way of BQT

Often enough you could hear terms like “transmining”,  “staking”, or other words which essentially mean earning a rebate, or a dividend, on the tokens you use or hold. Let’s dig a little deeper into what transmining actually means, what types of transmining will be available on BitQuant and what is a transmining Delta.

So, what is Transminig?

There are two types of transmining on the BitQuant Exchange: Reverse Transaction Mining and just Transaction mining. Let’s start with the former:

In essence, Reverse Transaction Mining (also known as Reverse Transmining) is a process of earning rebates on the trade-fees which you pay in our native token, BQT. Meaning, if you trade spot and choose to pay the trading fees in BQT, you claim a portion of the fees paid back. The amount that you claim is calculated using the following formula:

Where:
Σ - Amount of BQT tokens mined via Transaction Mining
V - Volume of order in the Basic currency
P - Price of BQT in Basic currency

In turn, the amount of rebated basic currency is calculated as follows:

Where: 

Σ(R) - Amount of rebated currency assets 

V - Volume of order in the Basic currency 

Δ - Transaction Mining Delta 

Whereas, Transaction Mining is a process where you receive BQT just for trading on the platform, regardless of whether the fees are paid in BQT or not. The amount you receive is also calculated using a mathematical formula:

Where: 

Σ - Amount of BQT tokens mined via Transaction Mining 

V - Volume of order in the Basic currency 

Δ - Transaction Mining Delta 

P - Price of BQT in basic currency

Notice, that in both cases, there is a “Δ” sign, also known as Delta. This is a parameter called to stabilize the amounts calculated with these formulas, to make this framework sustainable and offset any potential risks for the end-users of the Exchange.

Delta Parameter is designed to prevent possible critical situations with BQT supply and availability.  The Delta Parameter has two main functions:

  • Preventing a situation where 100% of supply - 100 billion BQT - could be mined altogether
  • Eliminating the chances that 100% of supply could be burned.

The Delta is depending on the current circulating supply of the BQT token, and the Delta for Reverse Transmining is inversely correlated with that of just Transmining. On the graph, it looks like this:

So, the less BQT you get from Transmining, the more you get from Reverse Transmining, and vice versa.

What benefits do I get from Transmining?

The answer to that - many. First, you get free BQT tokens for simply trading on the exchange, even with margin. Second, if you decide to pay the fees in BQT, you get a significant rebate (discount) on those fees. But most importantly, it provides a key use-case to the token, stimulating demand for BQT and having a direct impact on the price of the token.

Transmining is a great tool to provide utility and value to a platform token, as well as to incentivize the users of the platform to adopt it and become active participants of the broader ecosystem. That’ll be it for this week’s 101 on the types of Transmining, subscribe to our blog and follow our social media for more educational content!