Para Quienes Creen de Verdad

Token Burning Mechanism

To create a continuous utility ecosystem for BMEX holders, BitMEX intends to burn BMEX every month. The amount of BMEX eligible for buying and burning are:

• 4% of the Net Fee from derivatives markets

• 8% of the Net Fee from spot markets

• 50% of the Net Fee from BMEX Token trading pairs (on the BitMEX Derivatives & Spot Markets)

Net Fees are defined as: Collected Taker Fees + Maker Fees - Maker rebate - affiliates/referral rewards, promotional discounts, payment processor fees, and third-party costs associated with the service provision.

Note: For the time being, the maximum number of tokens eligible for buying and burning is capped at 500,000 BMEX Tokens per month. We will consider raising this cap in the future.

Process and Timeline

1. The calculation of Net Fees as per the formula above, will be performed at the end of the month. 

2. Buying of the calculated token amount on the BitMEX Spot market over the course of the relevant month.

3. Publishing the amount of tokens bought and burned on bitmex.com/bmex on the last day of the preceding month.*

4. This starts in November 2022 and will repeat monthly.

*For example, any amounts generated in November will be bought and announced in December.