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Everything You Need to Know About OKT

Avatar Guest Author 2 months ago
Note: This article first appeared on the OKEx website.

Following the recent launch of OKChain, our decentralized commercial public chain, we have also announced its native token, OKT. With significant worldwide interests towards this new token, we have sorted out some commonly asked questions to help you understand its uniqueness, as well as the differences between OKT and OKB.

Are OKT & OKB the same thing? Is OKT a fork coin of OKB?

No, they are NOT the same. OKT & OKB are fundamentally two different tokens with entirely different features.

The newly issued OKT is OKChain’s native token that acts as the base token for OKChain’s DPoS consensus. It will first be issued in its genesis block and 1–5% additional issue will take place every year afterward.

OKB is OKEx’s utility token that supports the development of the OKEx ecosystem. A one-off issuance of 300 million OKB was completed in 2018, and there will be no further issuance in the future. On top of its buy-back & burn scheme, the issuance plan of a total of 700 million OKB is terminated. Thus, OKB has now become the world’s first fully circulated platform token and will enter deflation.

Will OKT affect the price of OKB?

The answer is no. And their prices will be determined by different sets of factors.

The OKT price is based on the development of the OKChain ecosystem, including DEX, DeFi applications, and its future development.

The price of OKB is determined by the business performance of OKEx, development of the ecosystem infrastructure, expansion of its trading channels, as well as OKB Buy-back and Burn scheme. Here are the details:

  • Development of ecosystem infrastructure: The Expansion of OKB’s internal and external application scenarios. At this point, there are 11 internal and 32 external application use cases.
  • Expansion of trading channels: We have opened fiat gateways for 8 major currencies, including US dollar, Euro, Korean won, Indonesian rupiah, and Vietnamese dong.
  • OKB Buy-back and Burn scheme: The total issuance of OKB is 300 million, of which 13,978,364 OKB has been already burned. The current circulating amount is 286,021,636 OKB. OKB has no further issuance and is the world’s first fully circulated platform token.

Why do we have to create OKT?

OKChain adopts the DPoS consensus mechanism, which requires a native token to operate.

What’s more, the natures of the OKChain ecosystem and the OKEx ecosystem are very different, the former is tech-centric while the latter trading-centric. To better serve and maintain the highly autonomous ecosystem on OKChain, there is a need for a continuous issuance of its native token, as well as a flexible incentive system.

However, as we have to maintain our goal of continuing the deflation of OKB and to avoid diluting the value of OKB to protect its holders’ long-term interests, we cannot use OKB to be the OKChain’s native token. This is why we created OKT as the native token of OKChain.

Future moves to enhance OKB value

With the new token issued, we will still never stop developing our OKB ecosystem and expanding the scope of use cases, which already covered wallets, financial and loan services, network security, travel, lifestyle, utility, and more.

Besides, we will add more trading and depositing channels. Right now, we have opened fiat gateways for a range of major fiat currencies and have OKB listed on tens of major crypto exchanges with over 40 trading pairs against major coins available on the markets.

Lastly, we will continue to perfect the OKB Buy-back and Burn scheme. As mentioned, we will burn the unissued 700 million OKB and not retain any OKB. All OKB burned and to be burned come entirely from the secondary market.

Benefits for OKB holders

As a token of gratitude to our OKB community for their amazing support, we will map 100% of the genesis block OKT to all OKB holders according to their OKB holdings. In the future, both OKB and USDK will be migrated from the Ethereum ERC-20 network to the OKChain mainnet. Once the OKChain mainnet is live, OKT trading will be available. This is to say, OKB holders will have the chance to participate in the governance of OKChain and become a supernode.

Although OKB and OKT are different in many ways, they will be inseparable on OKChain. Not only does OKT support the development of OKChain, but it also empowers the development of OKB ecosystem.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

 

Image by Arek Socha from Pixabay
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