Since the initiation of the “transaction fee mining” model, FCoin has become a gem in the digital asset exchange sector, regularly catching the public’s eye while disrupting traditional profit mechanisms. In as little as three months, FCoin has completed business expansion through transaction fee mining, coin reform, incubation, and funds, and established close partnerships with various institutions in the industry.
As a pioneer transforming traditional encrypted digital asset exchanges, FCoin is acknowledged by many large institutions but also heavily criticized by opponents, especially for the price fluctuation of FT, the platform’s currency. From surge to dramatic fall, the price fluctuations have had an effect on both stakeholders and those watching from the sidelines.
It was mentioned previously that FCoin had launched community development to provide rights and protect the interests of the community, which was a significant measure at the time. It is not difficult for exchanges to concede a portion of profits to users, but deep community engagement requires great courage and determination in terms of innovation. Nevertheless, on August 13th, FCoin issued a “trading suspension” announcement based on their profound early-stage community engagement measures.
The trading suspension announcement released on August 13th enabled the community to hold a referendum on the platform currency issuance mechanism and rules of FCoin. Distinct options were presented to empower the community to make the final decision while FT trading was suspended.
The options that were available for the community referendum are listed below.
FT Issuance Mechanism Adjustment Plan:
Plan 1: Burn all unreleased FT tokens.
Purpose: To ensure deflation and price stability of FT under comparatively harsh market conditions.
Plan 2: Retain the original FT issuance mechanism or make slight adjustments.
Purpose: To adjust the market supply and demand balance with small mechanism adjustments on the premise of maintaining “transaction fee mining”.
Transaction Fee Adjustment Plan for FCoin Main Board A Trading Zone:
Plan 1: Charge no transaction fees for all trading pairs on the Main Board A trading zone.
Purpose: To energize mainstream currency exchanges, increase depth, and optimize the trading experience.
Plan 2: Among all trading pairs on Main Board A, exempt users from transaction fees that hold or freeze more than 3 million (adjustable) FT.
Purpose: To motivate strong investors with faith in FT to be market makers, and to energize mainstream currency exchanges, increase depth, and optimize the trading experience.
Plan 3: Retain the existing mechanism of the Main Board A trading zone or adjust it slightly (consistent with the transaction fee plans of other trading zones).
Revenue Distribution Plans for FOne Community Liaisons and Sponsor Institutions:
Plan 1: Add two revenue distribution plans for FOne:
- Any community liaison or sponsor institution that freezes 3 million FT (adjustable) will be allocated 50% of total transaction fees charged in its exclusive zone.
- Any community liaison or sponsor institution that freezes 5 million FT (adjustable) will be allocated 80% of total transaction fees charged in its exclusive zone.
Purpose: To encourage community liaisons or sponsor institutions to proactively develop and expand their exclusive zones while improving the overall revenue of the platform. Although the ratio of a single exclusive zone falls, the incentive effect ensures the overall revenue growth of the platform.
Plan 2: Retain the existing mechanism.
Reading this announcement generated excitement but also some concerns. On one hand, FCoin placing decision-making authority of the platform currency with the community represents the true blockchain community spirit. On the other hand, this community decision-making conduct is rare in the industry which generates additional worries and anxiety among followers in this space.
The release of the referendum results provided relief among the community, as they are ultimately beneficial to the subsequent development of FCoin.
The detailed referendum results are listed below:
- FT will stop additional issuance and total circulation of FT will no longer increase. A deflation model will be activated through repurchase. In other words, the FCoin 1.0 era marked by “transaction fee mining” has completed its goal with the issuance of FT and come to an end.
- FCoin Main Board A will begin a new mechanism: so long as a user locks a certain amount of FT tokens they can enjoy zero transaction fees. The Main Board A trading zone will implement this plan starting at 10,000 FT in order to receive zero transaction fees, with a lower threshold of 1,000 FT for the first three months.
To see more details on the referendum results, read the official announcement by following the link:
Why is there such a sense of relief reading the referendum results? Let’s review the highlights.
The first community referendum result was in favor of Plan 1, which states that all unreleased FT tokens will be burned.
The circulation of FT totals approximately 4.8 billion tokens with more than half of those being locked. According to the plan, the uncirculated FT tokens will be burned and those to be unlocked by FCoin Fund will be used for repurchasing. Therefore, the deflation logic of FT in circulation will become more prominent, making FT a full-circulation token.
This result is both exciting and profitable for users holding FT, especially for value investors who were purchasing during the fall of FT. The anticipation of a deflation mechanism has always been a significantly bullish force for the price of the digital currency. Of course, this also marks the end of the transaction fee mining era as FCoin turns a new page in the profound development of community involvement.
The second community referendum result indicates that FCoin Main Board A will start to lock a certain number of FT tokens through a zero transaction fee mechanism in which large accounts will be exempted from transaction fees. This is an effective means to stimulate transactions, particularly for some professional secondary market investors and teams. Moreover, if these crowds lock FT in large quantities, the circulating supply of FT will be further reduced which strengthens the deflation anticipation.
To a certain degree, the exemption of transaction fees will intuitively result in the loss of dividends, but this can be viewed in another way. The genuine value of FT lies in the long-term development of FCoin. Only when the multi-party participants of the platform contribute more actively can the platform strive for long-term expansion which is important for the growth of the FT token.
It is the insight that really matters in an investment. The deep community integration of FCoin continues. If it is successful, the value of FT will continue to grow as FCoin establishes itself for long-term development as a pioneer in digital asset exchanges. Already a legend in this space, FCoin will shine with further achievements through their community integration in the near future.