1. Brief Introduction
FTX Token (FTT) provides the best cryptocurrency derivatives platforms for different traders and investors
2. Project Introduction
FTT is the backbone of the FTX ecosystem. We have carefully designed incentive schemes to increase network effects and demand for FTT, and to decrease its circulating supply.
The utility of FTT includes:
1. Token Burn
One third of all fees generated on FTX will be used for an FTT repurchase, until at least half of all FTT is burned. Any FTT bought this way will be burned.
FTT can be used as collateral for futures positions. This increases utility and demand for FTT. The same applies when we launch margin trading in the future.
3. Discount on Trading Fees
Customers who hold a certain amount of FTT for a period of time will receive lower FTX futures fees. This will further increase demand for FTT.
4. OTC rebates
Customers who hold enough FTT will receive rebates from all of their OTC trading on FTX.
5. OTC burn
There will be a repurchase and burning of FTT based on OTC volumes and revenue from the FTX OTC portal, powered by Alameda Research.
6. Socialized Gains
We’ve performed backtests and live simulations to see how FTX will fare during large market movements. While other futures exchanges suffered from clawbacks, FTX managed to net increase their insurance fund by a sizeable amount thanks to its unique backstop liquidity provider program. For instance, during a recent market move, Okex incurred ~$3 million of clawbacks. Meanwhile, our demo simulation which mirrored positions on OKEx demonstrated no clawbacks and a net gain of a million to our insurance fund. We are confident in FTX’s ability to handle endangered accounts and will redistribute a portion of net insurance fund gains to FTT holders.
7. Future Expansion
FTT is the backbone of the FTX ecosystem. There are many ways FTT will be used as we add more products and features to FTX. For instance, when we launch a spot exchange in the future, FTT will be used for initial exchange offerings.
3. Token Allocation
Earlier FTT purchased will also begin unlocking at listing, but will unlock over 1.5 months (for investors who purchased FTT at 20-60c round),1 month (for the 60c - listing price round) or 3 months (for seed investors). We've sold roughly:
$0.10-$0.20: 50m FTT tokens
$0.20-$0.60: 6.5m FTT tokens
$0.60-$0.80: 2.8m FTT tokens
If a token unlocks "on day X", that means it unlocks at noon Antigua time on that day.
This means there will be no FTT unlocked when it lists, and less than 10% of all tokens will unlock in the first month.
FTX’s interest is for FTT, as well as the exchange, to succeed long term--much more than short-term profit. We will not be taking actions that we think will damage the long term growth of FTT.
About three fifths of non-company tokens are unsold. Of these:
5% -- Insurance Fund Insurance
Funds set aside in case the insurance fund runs out of money.
5% -- Safety Fund
Funds set aside in case there are platform losses.
20% -- FTT Liquidity Fund
Funds used to provide liquidity in FTT markets.
20% -- Team Tokens
Tokens given to project employees.
5% -- Adviser Tokens
Tokens given to advisers of FTX.
25% -- Company Tokens
Funds locked up over a 3-year period, like the rest of the company tokens.
10% -- Ecosystem Fund
Funds used to grow the FTX ecosystem.
10% -- User Acquisition Fund
Funds used to help grow the userbase and volume on FTX.
There are 350,000,000 total FTT tokens. Of those, 175,000,000 are company tokens that unlock over a three year period.
4. Related links
Block Explorer: https://etherscan.io/token/0x50d1c9771902476076ecfc8b2a83ad6b9355a4c9