It’s time to divulge a huge amount of the details concerning the future plans for Bitrue.
As we teased last week, we have been working on a new feature which will help users maximize their earnings potential from Yield Farming. At the core of this new feature is a new token called BMAX Asset Management Token.
We would encourage everyone to look at the entire litepaper if you are interested in the background information, mechanisms, and tokenomics surrounding this token. In this article we will give you the basics to give you an introduction to its core principles.
In short, BMAX is a token that you can optionally choose to farm for when deciding to invest your coins in Bitrue’s Yield Farming pools. The average APY for these farms will be appreciably higher than what would be available from regular pools, generally 15–100% higher depending on the pool itself. BMAX will be entirely community owned, the Bitrue team and investors will not be receiving any tokens or preferential treatment.
By utilizing BMAX as a reward token we will be eliminating the problems currently present in staking and DeFi rewards programs, such as the risks of theft or sub-par returns. Through frequent buybacks we can help to ensure that our token ecosystems will be deflationary, and it will also reduce supply flows of BTR onto the markets as it replaces its function as a reward from yield farming.
The initial distribution of BMAX will be done via an airdrop to BTR holders, the details of which we will be sharing very shortly. After that initial distribution the token will only be distributed via Yield Farming pools, at amounts that are balanced according to the current market price of the asset in order to match the intended APR. Buybacks will occur at least three times per quarter.
We will be moving fast to bring this project to all of our users as soon as possible, with the first tokens reaching user’s hands on April 19th in the first round of airdrop rewards, and the subsequent launch of BMAX trading on the exchange.
We hope you’re all looking forward to this exciting new project as much as we are!
Q. What’s the relationship between BMAX and BTR?
A. In short, BTR is the governance token that decides how things are run on Bitrue while BMAX is only a rewards token. BTR will define the functionality of BMAX, such as by voting on new pools to open or adjustments on the interest rates that can be achieved.
Q. What’s the value in holding BMAX?
A. BMAX has been designed to be deflationary. Frequent buybacks (at least three per quarter) will be initiated to sustain the price.
Q. What blockchain does BMAX use?
A. Much like BTR, BMAX will be an ERC20 token built on the Ethereum blockchain.
Q. Will any BTR functions be deprecated?
A. Nope! BTR will still be used in the BTR Votes, to reduce trading fees, and so on. The only change is that BTR will no longer be frequently distributed in Yield Farming pools, which will reduce its circulating supply in the long term.
Any other questions? Ask them here and we’ll update the FAQ later.