Blocktane has launched the BKT Liquidity Mining Program on May 31st, 2022. This program is a whole new level of trading contests and community engagement through educational discussions to enable the largest BKT distribution ever imagined.
Blocktane’s Liquidity Mining Program is our way of aligning the Blocktaner community with Blocktane in growing our market size and encouraging new order flow to be directed to the platform.
This is the exchange’s single largest endeavour to date. We are excited to announce that 50% of the total BKT supply will be provided as rewards to the community through their participation in this program over a nearly four year program term. This giveaway exhausts the original Blocktanium[BKT] token supply, and no program in the future will ever be as big as this!
The program is divided into three Phases which represent an evolving set of rules according to which Blocktane measures and accounts for participation in our markets and allocates participation points toward a share of our BKT Rewards Pool.
Each Phase has one or more Epochs, which are 28 days time periods during which a fixed one million BKT are allocated as our Rewards Pool to be distributed to users who participate in accordance with the applicable rules.
Blocktane deliberately made our BKT Liquidity Mining Program very long term. It is important to show our users we are committed to the long term, and to continually give the community a reason to choose to trade on Blocktane often. With a total of 50 Epochs, each measuring 28 days, meaning a total 1400 days or 3.83 years, Blocktane is putting our resources into making the platform attractive, competitive, high liquidity, and directly rewarding for our clients — the Blocktaners.
We encourage traders to review our Liquidity Mining Program rules for each Phase, and to discover the utility and excitement of BKT in growing our ecosystem!
As Blocktane becomes larger and BKT affords greater utility within the scope of fee savings and multiplier value in BKT Rewards Pool participation, users will quickly understand why they need to join in!
Blocktanium [BKT] Token Distribution
All BKT has been allocated according to the chart below. The primary goal of this distribution allocation for BKT is to become owned by the user community as broadly as possible.
BKT from the Liquidity Mining Rewards Program will be unlocked and released to the Blocktane community in accordance with the Epoch schedule disclosed elsewhere.
Investor and Team tokens are on a linear vesting schedule that will complete by the end of 2022.
To participate in the BKT Liquidity Mining Program, blocktaners need to hold a balance of BKT which places them in a qualifying fee tier of BKT 2 Bronze or greater to maintain a valid BKT rewards participation multiplier.
This page contains a ranked list of all Blocktane user IDs which are participants in the BKT Rewards Pool for the currently open Epoch. The rankings data will be fully updated every six hours and can be used to understand the currently applicable rewards distributions.
It is important to note that your rewards allocation can change substantially over the course of an Epoch as other users’ activity will affect the proportional share distributed to each individual user. Pay close attention throughout the Epoch, and especially as it draws to a close when activity in the closing moments could be high velocity and change the results as participants try to up their score quickly.
Phases, Time Frames and Epochs
The BKT Liquidity Mining Program is divided into three Phases. Each Phase represents a different methodology for calculating user participation towards the applicable BKT Reward Pool. The methodology is evolving through the Phases in order to improve trading experience and the quality of the order books.
The BKT Liquidity Mining Program will occur over the course of time periods called Epochs.
Each Epoch is measured as 28 days. Each Epoch starts at 15:00:00 UTC on its first calendar day, and ends at 15:00:00 UTC of its final calendar day. Epochs therefore have a 24 hour gap separating one from the next. This time gap allows Blocktane to both update any parameters which are changing between Epochs as we move from one Phase to another, and to ensure an orderly start to counting user participation in the next Epoch.
Phase 1
Phase 1 will last 2 Epochs of 28 days each.
For the whole Epoch, we count a numerator of points accumulated for each user ID, and let the denominator be the sum of all points for all users. At the end of the Epoch, the closing user points number divided by the sum of all aggregate points equals the proportion of earnings of BKT that will be paid to that user.
For each user:
- At a base level, each trade as 1 point (ignore volume per trade and count just the number of executions, so a trade of $1 or $100 is 1 trade, but 100 trades of $1 each is 100 points)
- When counting each trade for a user, we introduce a points multiplier. With this multiplier, the number of points earned per trade is multiplied by the applicable fee tier for that user based on the table below.
Only users who hold a balance of 501 BKT or greater and are in the applicable fee tier will have their activity counted towards the program.
Example 1:
James trades 10 times and is in fee tier BKT 5, his activity will count as 80 points.
Alice is in fee tier BKT 2, and with 10 trades, her activity would count as 10 points.
Users have the ability to trade as often as they would like, and over the course of the Epoch this will affect their total proportional rewards as more points are counted from the aggregate activity of Blocktane. It is likely that a user would need to earn points throughout the Epoch to maintain their expected share of the BKT distribution at the end of the Epoch as they might have been eligible for in the early part of the Epoch.
Example 2:
James trades accumulates a score of 1000 points from his trading by the 10th day of the Epoch. The total points earned by all Blocktaners up to that point is 100,000 points. At that moment, James’ expected share of the bonus pool is 1,000/100,000 = 1%. Since the bonus pool is 1,000,000 BKT this means James would expect to receive 10,000 BKT.
By the 20th day if James has not earned any more points, his total score remains 1000. However, other Blocktaners have traded and the total points sum of all users is now 500,000. As a result at that moment in time, James’ expected share of the bonus pool has declined to 1000/500,000 = 0.2%, and therefore 2,000 BKT.
James, and any other user may continue to earn as many points as they would like up to 15:00:00 UTC of the closing date of the Epoch to compete for any share of the bonus pool they may wish to earn.
Phase 2
Phase 2 will last 2 Epochs of 28 days each.
For each Epoch within Phase 2, we count a numerator of points accumulated for each user ID, and let the denominator be the sum of all points for all users. At the end of the Epoch, the closing user points number divided by the sum of all aggregate points equals the proportion of earnings of BKT that will be paid to that user.
For each user:
- At a base level, we count each dollar or equivalent currency unit of value of volume traded to be one point. (i.e. $100 of volume in one trade or in many trades is still $100 of volume and thus 100 points either way)
- When counting each trade for a user, we introduce a points multiplier. With this multiplier, the number of points earned per trade is multiplied by the applicable fee tier for that user based on the table below.
Only users who hold a balance of 501 BKT or greater and are in the applicable fee tier will have their activity counted towards the program.
Example 1:
James trades $1 of volume 10 times and therefore has $10 of total volume traded. He is in fee tier BKT 5, so his activity will count as 80 points.
Alice is in fee tier BKT 2, and completes 10 trades of $100 value each for a total of $1000 of volume. Her activity would count as 1000 points.
Just the same as Phase 1, users have the ability to trade as often and with as much volume as they would like, and over the course of the Epoch this will affect their total proportional rewards as more points are counted from the aggregate activity of Blocktane. It is likely that a user would need to earn points throughout the Epoch to maintain their expected share of the BKT distribution at the end of the Epoch as they might have been eligible for in the early part of the Epoch.
Our other Example from Phase 1, repeated below here is still valid.
Example 2:
James trades accumulates a score of 1000 points from his trading by the 10th day of the Epoch. The total points earned by all Blocktaners up to that point is 100,000 points. At that moment, James’ expected share of the bonus pool is 1,000/100,000 = 1%. Since the bonus pool is 1,000,000 BKT this means James would expect to receive 10,000 BKT.
By the 20th day if James has not earned any more points, his total score remains 1000. However, other Blocktaners have traded and the total points sum of all users is now 500,000. As a result at that moment in time, James’ expected share of the bonus pool has declined to 1000/500,000 = 0.2%, and therefore 2,000 BKT.
James, and any other user may continue to earn as many points as they would like up to 15:00:00 UTC of the closing date of the Epoch to compete for any share of the bonus pool they may wish to earn.
James would still face the same changing proportional share of the bonus pool over the course of the Epoch, based on his number of points earned. However, his number of points would now be focused on the total US Dollar equivalent value volume he trades, rather than the unit count of his total trades. He could complete one very large trade and receive the same number of points as with many small dollar value trades.
Phase 3
Phase 3 will last 46 sequential Epochs of 4 weeks each, with a bonus pool of 1,000,000 BKT per Epoch.
For each Epoch, we introduce a split of the bonus pool which is available to be earned by two participation methods. We continue to reward trading using the methodology of Phase 2, and introduce a progressively larger focus on rewarding quoting in Blocktane’s order books using a new methodology.
For the order book rewards, we only reward orders in any Blocktane orderbook within 0.5% of each of the bid and ask side of the midpoint of an orderbook. Any orders further away from the midpoint of an orderbook do not receive any rewards. Rewards are rewarded to a combination of the proximity of the quote to the midpoint, as well as the amount of assets quoted. Larger quoted quantities at 0.49% from the midpoint may receive the same reward as smaller sizes extremely close to the midpoint, for example.
Each hour within an Epoch at a randomized time, we take a snapshot of all orders within a 1% total spread around the midpoint. Each order’s dollar equivalent value of quoted quantity and its price versus midpoint is recorded.
For each order we complete the following calculation:
[(1 — (spread distance in % x2)] * $ amount of value quoted
For example, consider the following fictional orderbook of ABC/USDC:
The best bid is 99.80 and the best ask is 100 USDC per ABC. The midpoint of this book is therefore [(100–99.8)/2]+99 = 99.9 USDC per ABC.
A 0.50% distance from the midpoint is therefore 0.499 USDC, and therefore the maximum distance from the midpoint which will be rewarded is 99.301 USDC on the bid side and 100.299 USDC on the ask side. Any orders further than these prices from the midpoint on their respective side of the order book would not earn any rewards.
Applying the formulas above we can calculate the points earned. Using order number 1, here is the calculation:
Spread distance expressed as a percentage is: (99.9–99.8)/99.9 = 0.1001%
The amount quoted for this order in dollars is 99.8 x 1 ABC = $99.80
The points calculation therefore is [(1 — (0.1001 x 2)] * 99.8 = 79.82004 points.
The results for each of the orders is:
1 is 79.82004
2 is 111.3845045
3 is 0
4 is 183.953954
5 is 0
6 is 0
Zero value outcomes are a result of those orders being greater than 0.50% distance from the midpoint of the orderbook.
Summed per user quoting, the following points would be earned:
User AA = 79.82004
User BB = 295.338458
User CC = 0
The methodology described is applied equally to all order books once per hour. Any user may quote in as many order books as frequently as they may desire in order to increase their total sum of points earned during an Epoch. Placing larger quantities of capital at risk is a few order books or distributed amongst many order books may result in the same points score, leaving users with the discretion to manage their quoting however suits their strategies and risk appetites.
The total number of potential points that may be scored by users will therefore also scale proportionally with the amount of capital quoted amongst Blocktane’s order books. If increasing amounts of capital are quoted in Blocktane’s order books over the course of future Epochs, it is also likely that any single order for a given amount of capital during an Epoch will represent a smaller earning of the prize pool in later Epochs.
Terms and Conditions to Participation in the BKT Liquidity Mining Program
