Bithumb Global, the international arm of the South Korean crypto giant, has announced the launch of its native digital currency, the exchange announced on Monday.
Dubbed Bithumb Coin (BT), the token will act as the medium of transaction in the exchange’s ecosystem and will be the native coin of its upcoming blockchain. The exchange is expected to launch its blockchain in the first quarter of next year.
“Bithumb Chain is the decentralized open-source protocol that powers the products, services, and infrastructure within the Bithumb Family ecosystem which helps capture value from both upstream and downstream of the trading business,” the exchange explained.
“Bithumb Coin (BT) enables transactions within Bithumb Chain and provides the necessary mechanism for facilitating true incentives and value within the protocol.”
Similar mechanics of exchange token
The exchange will mint the token with a hard cap of 300 million. Moreover, it also detailed that half of the revenue generated by the exchange will be used to burn 50 percent of the tokens over time and finally, only 150 million BT will be in circulation.
The model is similar to Binance Coin, the native digital currency for Bithumb Global’s competitor.
Thirty percent of the token distribution will be based on the user incentive pool, while another 30 percent will be allocated for trading incentives with a point system, the criteria of which will be disclosed by the exchange later.
The announcement also detailed that the token can be used for handling fees and user rights on Bithumb Chain, along with the payment of fees on Bithumb Global.
“BT holders can vote and participate in the governance of Bithumb Chain which includes project listing nomination,” the exchange added. “In effect, Bithumb Chain eco-participants not only participate in the formulation and direction of network development, but also the investment decisions of Bithumb Chain.”