HTX's "Trade to Earn": Everything You Need to Know

Trading mining is a mechanism that rewards users with tokens for their trades. It boasts major advantages such as attracting more users, boosting platform activity, and facilitating project promotion. In this process, users trade on a platform to earn additional cryptocurrency, typically the platform's native token.

Types and Evolution of Trade Mining

Since its inception by FCoin in 2018, trade mining has evolved into various forms. Here are several primary types of trade mining.

Trade-to-Mine: FCoin introduced the Trade-to-Mine (ToM) model in 2018. Under this model, FCoin refunds users with FT tokens based on their trading fees until 51% of FT is distributed. With these tokens, users can enjoy benefits such as fee discounts, dividends, governance rights, and voting for listings. The core principle is "trading for mining + holding for dividends."

Liquidity Mining: With the surge of DeFi in 2020, especially with the emergence of DEXs like Uniswap, liquidity mining has become a successful model.It combines trading mining with rewards for liquidity providers, allowing users to participate in trading pairs and earn token rewards by providing liquidity. This model increases liquidity for trading pairs, thereby enhancing the trading experience. Compared to traditional volume-driven trade mining, liquidity mining represents significant progress as it enables participants to act as market makers.

NFT Mining: The rise of NFTs in 2021 has sparked a trade mining trend across NFT marketplaces. Essentially, new exchanges are competing with established platforms like OpenSea by offering trade mining incentives. Notable examples include LooksRare's trade mining, X2Y2's order mining, and Blur's point mining. Users on these marketplaces can earn platform tokens or NFTs as rewards by trading and holding NFTs or participating in NFT-related activities. In the long run, NFT trade mining substantially improves NFT liquidity, contributing to the growth of NFTs.

Community Mining and Game Mining: With the development of Web3, decentralized communities have become increasingly prevalent. To foster engagement and governance, some crypto projects have launched community mining programs, where users can earn rewards by holding tokens and participating in voting or community development. Additionally, some blockchain gaming projects have introduced gaming mining, allowing users to receive platform tokens or in-game virtual assets as rewards for playing games. These initiatives represent a paradigm shift in trade mining.

Pros and Cons of Trade Mining

As an incentive mechanism, trade mining offers both advantages and disadvantages.

Advantages of trade mining:

(1) Trade mining attracts more users to trade, thereby increasing trading volume and liquidity.

(2) By offering rewards, trade mining boosts platform activity and brings in more users.

(3) Trade mining events often capture the interest of media and community members, facilitating effective project promotion.

Disadvantages of trade mining:

(1) Trade mining may attract speculators who prioritize short-term gains over long-term project development, exerting negative impacts on the projects.

(2) Although trade mining can enhance the liquidity of trading pairs, it may sometimes lead to issues with insufficient or unstable liquidity, particularly after the trade mining events have concluded.

HTX's "Trade to Earn" + Buyback and Burn: Creating an Ultimate Deflationary Model

HTX aims to chart a sustainable path forward by introducing an innovative model of "Trade to Earn + Buyback and Burn."

Unlike the trade mining mechanisms of other platforms and projects, HTX's "Trade to Earn" requires users to hold a certain number of Rockets. This threshold reduces speculative participation and attracts users who contribute to and believe in the platform's long-term growth, fostering sustained success for HTX.

Additionally, HTX will allocate all trading fees from "Trade to Earn" events to repurchase and burn $HTX. This process is fully open and transparent, under the supervision of the community. This buyback and burn mechanism not only reduces the supply of $HTX but also enhance its stability and value. Most importantly, this burning method also grants more earning opportunities for HTX DAO users. Through participation in liquidity mining, users can receive more rewards in tokens, thereby achieving wealth appreciation.

How to Participate in HTX's "Trade to Earn" event?

HTX's "Trade to Earn" events will be launched without a set schedule, so please keep an eye on official announcements.

Once the event starts, visit the event page, click "Register Now," and trade the designated pair.

Note: Rewards for the "Trade to Earn" event are distributed on a first-come, first-served basis. Please monitor the current mining progress. If it reaches 100%, the prize pool for the current period has been fully claimed.

Summary

Trade mining can attract more users, boost activity, and help with promotion. However, it also carries risks such as market manipulation, speculation, and liquidity instability. Ultimately, trade mining serves as an incentive mechanism, and for sustained success, trading platforms and projects must focus on creating value for their users.

HTX adopts an innovative model of trade mining, incorporating a threshold and a buyback and burn mechanism. This approach aims to attract users who contribute to and believe in the platform's long-term growth, thereby fostering sustained success for HTX. The mechanism uses trading fees to repurchase and burn $HTX, reducing token supply while enhancing stability and value. Moreover, it offers HTX DAO users additional earning opportunities, facilitating sustainable growth.