VX Mining Announcement
Francesco Vite last edited by Allen
Dear ViteX Users:
We are thrilled to announce that VX mining will officially begin at 12:00 (UTC+8), September 9th. Rules for mining are described as follows. Mark the date and join us!
Access our exchange here: https://vitex.net
The first batch of trading pairs eligible for mining VX on Sep 9 are grin/btc, eth/btc, vite/btc, vite/eth, grin/eth, grin/vite, eth/usdt, btc/usdt and vite/usdt
Ways to Mine VX
1. Trading as Mining
Currently, users are able to trade in four markets: BTC, ETH, VITE and USDT and receive VX rewards accordingly.
Allocation: On each trading day, 60% of daily distributed VX can be mined through trading in the 4 markets mentioned above. Each market will receive 15% equally.
How to participate: By executing trades on eligible trading pairs and paying the corresponding trading fees, users mine VX (Trading as Mining).
Mining reward calculation: VX rewards are calculated based on the proportion of a user's daily accumulated trading fee to the total accumulated fees in each market. For example, for a given day, if a trader accumulates 5% of the total BTC market trading fees, then that trader will receive 5% of the 15% of VX rewards allocated to the BTC market.
2. Staking as Mining
By staking VITE to help ViteX obtain necessary quota, users receive VX rewards.
Allocation: 20% of daily released VX
How to participate: stake VITE with the beneficiary set to the ViteX smart contract
Staking amount: the minimum amount of VITE that users can stake is 134 VITE. There is no maximum cap.
Staking duration: if a user stakes his or her VITE, they will be able to withdraw it after 3 days. There is no maximum number of days for staking VITE (i.e. users can stake VITE indefinitely if they want to). Note: after the staking amount is retrieved, it will not be counted towards staking as mining rewards. The user must re-stake VITE in order to participate in staking as mining rewards.
Mining reward calculation: the amount of VX rewards will be calculated based on the proportion of VITE staked by a user's account to the total amount of VITE staked that day.
3. Market-making as Mining
Placing orders on ViteX will also earn users VX rewards. The amount of VX earned depends on three factors: 1) the amount of order, 2) the amount of time your order remains on the order book, and 3) the amount of deviation from the best bid and best offer in the order book spread.
Allocation: 10% of daily released VX, with each market (BTC, ETCH, VITE and USDT) weighted equally at 2.5%
How to participate:
• Only eligible trading pairs will be considered for market-making as mining rewards.
• Only buy orders will be considered for market-making as mining rewards
• The buy orders must not deviate more than 10% from the best buy offer in the order book
The VX mining reward for market-making has a linear relationship with the order amount and order duration (i.e. the amount of time the pending order stays on the order book). However, the mining reward has an exponential relationship with the order distance (i.e. the deviation from the best bid offer).
For example, if Alice and Bob both place two separate orders for the same amount of token X. Both orders remain on the order book for the same amount of time. However, Alice prices her order on level 1 (i.e., extremely close to the best bid offer) and Bob prices his order on level 10 (i.e. further away from the best bid offer), the mining reward for Alice will be 100 times that of Bob's. This system is designed to incentive users to place orders as close to the best bid offer as possible.
4. Referring as Mining
Users can request invitation codes to invite friends to join the ViteX platform. The invitees will enjoy a 10% discount on trading fees on the ViteX platform while the inviter will receive a "commission" of 5% on all transaction fees generated by the invitees. This means that 5% of their invitees trading fees will get counted towards the inviter's total trading fees.
How to participate:
• Apply for a referral code using this form: https://forms.gle/D71gwnVVXdEBWfKi8
• If you are approved, you will get a referral code that you can send to your friends
How to generate a referral code:
• In order to obtain a referral code, the user will also need to pay 1,000 VITE, of which 100% will go into the shared dividend pool.
• Currently, the referral code generation will not be available to all users. Those who are interested need to apply for a referral code via this form. Later on, the referral code generation function will be added as a feature to the Vite wallet and users will be able to generate the code without having to apply.
Mining reward calculation:
As an example, let’s say Bob gets a referral code from Alice. When Bob signs up and starts trading on ViteX, he gets 10% off of all trading fees (Base Transaction Fee + any applicable Zone Fees) on ViteX. Alice, on the other hand, benefits from Bob’s trading activity as 5% of Bob’s accumulated trading fees count for Alice’s accumulated trading fees. For example, if Bob accrues $100 in trading fees and Alice accrues $200, Alice will effectively have $205 in accumulated trading fees (thus boosting the ratio of her trading fees to the total collected fees = more VX rewards).
5. Listing as Mining
Whenever a trading pair is opened on ViteX, the issuer is required to pay 10,000 VITE. Of this 10,000 VITE, 5,000 VITE will be burned and the other 5,000 VITE will go into the shared dividend pool. The token issuer’s VX reward is then calculated as if he/she executed a trade involving a transaction fee of 1,000 VITE.
For example, if Alice listed a trading pair, her VX reward on the given day would be calculated as follows:
ViteX Coin – VX
VX is the coin native to the VX platform. VX holders enjoy benefits in the form of dividends as the trading and listing fees collected by the exchange are distributed back to VX holders.
• Total supply: 100 million
• Smallest denomination: 10^-18
• Features: VX holders receive daily dividends from a shared dividend pool which aggregates the trading & listing fees accumulated by ViteX and redistributes back to VX holders.
• Distribution: VX will have no private sale nor public sale. The only way to obtain VX is through mining using the 5 methods listed above.
• Release schedule: 100 million VX will be released over the course of two years at a fixed percentage rate.
VX Distribution Schedule
Two-Phase VX Release Model
After the official launch, there will be two VX release phases.
The total supply of VX will be 100,000,000 with no inflation.
During the first phase (“buffer phase”), 10,000 VX will be released per day. This will last for 1–2 months. Once we feel that enough users have joined in, the second phase will start.
During this phase, the release schedule will follow the model outlined below:
In the first year, the number of VX released will decrease by 0.5% every day.
477,032 VX will be released on day 1. According to this formula, the 80.13% of total supply will be released in the first year.
In the second year, the number of VX released will decrease by 0.2% every day.
37,051 VX will be released on the last day of the second year.
VX Mining Allocation
The daily amount of released VX will be allocated according to the breakdown below:
• Trading, Referring and Listing: 60%
o BTC market: 15%
o ETH market: 15%
o VITE market: 15%
o USDT market: 15%
• Staking: 20%
• Market-making: 10%
• Vite team: 10%
VX Holder Dividends
All fees collected by the ViteX platform will be collected into a shared dividend pool and distributed at a rate of 1% daily. For any given day, the total fees collected during that day will be fully distributed by the 100th day.
This shared dividend pools will consist of the following:
• All trading fees collected by ViteX (excluding Operator Zone fees)
• Each time a new trading pair is listed, 5,000 VITE from the 10,000 VITE listing cost goes into the dividend pool
• Each time a referral code is generated, the 1,000 VITE fee (paid by the user requesting the referral code) goes into the dividend pool
In order to receive dividends:
• You must hold a minimum of 10 VX. Please note that VX held in a wallet account will not make you eligible for dividends — the VX must be held on the ViteX exchange account in order to be considered for dividend rewards.
Transaction fees have been accumulating in the shared dividend pool since ViteX went live. As 1% of daily collected trading fees will be distributed to VX holders, 41 days of accumulated dividends will be distributed on the day VX mining starts, the dividend rate then returns to 1% daily.
So far, the shared dividend pool has accumulated about 1,500 USD to be distributed to first day VX holders (43,035 VITE, 0.01642 BTC, 0.8774 ETH, 202.44 USDT), and the number is still growing.
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