• Hardcap: 30,000 ETH
• Token: ERC20
• Token Symbol: BTMX
• Total Supply: 10 Billion
• Website: Bitmax
• Whitepaper: https://bitmax.io/static/whitePaper_EN.pdf

What is Bitmax?

• A community-focused digital asset trading platform with incentives for liquidity provision
• Complex reward model with includes token creation (mining) via fee-reimbursement, profit-sharing to token-holders, token burning and incentivisation for maker-trades

Features

Transparent

• All transactions records available upon request.
• Address for permanent lock-up (burn) of tokens can be viewed at https://etherscan.io/address/0x57555AA8F3Abb6b52463a15D292EbAE3C58B20a5#tokentxns (at the time of writing this article around 4,000,000 BTMX was locked.

Realtime

• Supports settlement under real time and consistent 24 hr trading operation. However, maximum throughput of their trading engine, latency of their networks and servers colocation still needs to be confirmed.

High Performance Design

• Claim institutional-grade architecture.

Participatation incentives

• Users are incentivised to participate in transactional mining, project voting and liquidity-provision via makers' incentivisation.
• Retail is protected by daily limit on how much BTMX can big players sell per day (300k).

Security

• System is built in association with third party independent security firm with a combination of firewalls, segmentation and monitoring data processing in real time. So far it seems that withdrawals are being confirmed semi-manually and the team uses combination of hot and cold wallets with multisig.

Broad Range of Trading Products

• During its early trading stage it will support the following :
  • BTC
  • ETH
  • BCH
  • LTC
  • USDT
  • Other top ERC20 tokens ( Zilliqa, Aelf, Libra Credit etc)

Problems they Solve

Market Liquidity

• With deep support from partners including FBG capital, Leminscap, GBIC, Torque, and Bitmain will ensure adequate attraction of trading volume will commence on this platform

Incentivised Trading

• Native token, BTMX is used as a trading fee so trader which creates a large buy demand, increasing the price of native token
• Trader gets token for free, amount of tokens depend on their trading volume
• Allows zero fee trades
• According to original roadmap should start margin trading this month

Details about the Transaction and Rerverse Mining can be find HERE

Token Allocation

51% - distributed for transactional mining
5% - early supporters
4% - strategic partner
12% - team and platform
18% - Foundation
1% - marketing and operating
9% - private sales (of which 10% is pre-released prior to the rest of the distribution)

Advantages

• Low Hardcap of $10M
• Trading incentives attract traders and market makers to the exchange
• What this means: token's protocol should drive low commission, tight spread, higher liquidity thus making the exchange to grow and thrive
• Support by known funds drives interest from retail
• Team led by Wall Street veteran, Dr. George Cao

Partners

Competition and Comparison

Bgogo

• Basic: Both use trade-mining approach, however, the percentages the fees refunds differ as well as the way users are motivated to hold the BGG token.
• Fees reduction - at Bitmax you get 100% of fees back in form of BTMX token, at Bgogo 105% in form of BGG token
• Profit sharing and holding incentives - 80% of transaction fee revenue is shared by Bitmax to BTMX token holders, Bgogo has slightly different system where holder of BGG tokens have around 50% chance of winning double trading fees rebate. Both systems are supposed to incentivise token holders to hold tokens.
• Token supply management - as you can imagine this "printing of tokens" could increase supply exponentially therefore inflating token value. For this reason Bitmax introduced Reverse Mining and Bgogo introduced buy-back and burn. Bitmax allows traders to put up trades and pay with BTMX token which will consequently be locked up permanently (same as burning). Bgogo on the hand uses the standard model of buying back tokens by using the rest of their profits and then burning those tokens. This model limits the circulating supply of tokens. Furthermore both exchanges put up limits per person/investor on how many tokens they can sell per day, therefore preventing "dumping".
• Listings voting: Bgogo has supernodes that vote on future listings of tokens and coins, Bitmax does not have supernodes voting system planned yet

FCoin

• Both used "trans-fee" mining model and is believed to be not the inventor but the pioneer of transaction-mining model and dividends payments (other exchanges that implemented the model are Coinsuper, Bitforex, Coinbene)
• Fees reduction: FCoin used the standard model of rewarding traders back with token in exchange for their trading fee. In August they also introduced extra 10% bonus on top of that, making the token reimbursement 110% (Bgogo does 105 and Bitmax 100).
• Profit distribution: Similarly to Bitmax, 80% of profits are distributed to Fcoin Token (FT) holders.
• Holding incentivisation: To our understanding, this was the main issue with Fcoin - they did not introduce any holding incentives and simply flooded the market with Fcoin Token making the supply outweigh the demand.
• Bitmax introduces reverse- mining as a stabilizing mechanism to support the pricing and value of its token on the longer-term basis

Sustainability

The main objection people have towards trade-mining exchanges is that their business model is not sustainable as they are effectively distributing most of their profits as well as flooding their market with their token. However, the current CEO's of Bitmax and Bgogo do not try to pretend the trade-mining model is a long-term prospect for their exchange. Au contraire, it is a method to kickstart yout exchange and gain enough momentum to be able to compete with the already established players in the field. By cleverly setting up your token model based on predicted activity on your exchange (game theory+statistics) one can grow the exchange while preserving the value of the token. In the cases of Binance and Huobi we have also seen that the utility of their tokens changed over time which is something we can expect from the up-and-coming contenders as well. As long as an exchange can gather traction and trust amongst the community of traders then what will make it competitive will be - ability to create high-frequency trading engine, top security, top networking and colocation of servers to decrease latency times, customer service, trading features, and of course ability to leverage regulations in different jurisdictions.

Conclusion

Bitmax's trans-fee mining model is not novel but it definitely puts them in good position to learn from the short-comings of previous exchanges. The main question is whether the game thoery of supply-demand management and incentivisations for token holding can balance the supply of the token. Apart from incentivisation, it focuses on stabilisation mechanisms ensuring token liquidity and minimising possible price instabilities. Its extensive support from numerous all-star investors (Bitmain, Matrix, DHVC, FBG, GBIC, BA Capital, Torque, Leminscap) combined with top calibre team members with years of experience from Wall street institutions definitely puts this project in a strong spot compared to other similar exchanges.
Incentivised trading is now ongoing at Bitmax