Destroying Tokens to Increase Value for All

FTT was designed to integrate with FTX’s products and services from the very beginning.

As FTX continues to grow, so too will FTT expand in scope, continually increasing its utility and giving value back to the community.

What Does it Mean to Burn Crypto?

Burning crypto refers to a process where a project destroys a number of its tokens, thereby reducing the overall supply. This is done to place deflationary pressure on the token’s price and is often used to increase the value of the remaining currency.

FTX takes this a step further. By incentivizing FTT holders with trading fee discounts, weekly SRM airdrops, and staking rewards, the Buy and Burn mechanism is part of an overall deflationary strategy that ensures that FTT is an increasingly valuable asset and also one that is actively used within the FTX ecosystem.

How Much FTT Token is Burned?admin2022-06-10T15:17:48+09:00

How Much FTT Token is Burned?

At the platform’s inception, it was decided that 33% of all trading fee revenue generated on FTX would be dedicated to the FTX Token Burn. As FTX grows and more fees are generated, the amount of FTT burned will increase until half of the original supply of 350 million FTT is destroyed.

FTX additionally uses 5% of all miscellaneous revenue generated across the platform to Buy & Burn FTX Token.

Socialized Gains and the Backstop Liquidity Pool
FTX was created to give crypto investors the best possible trading experience. This includes providing the most innovative products and services on the market and ensuring that traders are protected from clawbacks during turbulent market swings.

Clawbacks, also known as socialized losses, occur when market volatility causes a large number of leveraged positions to be liquidated. If the exchange lacks the liquidity to cover the losses, this can trigger clawbacks, where funds are taken from net positive accounts to maintain the platform’s solvency.

FTX addressed this issue with the implementation of the backstop liquidity pool. This innovative component of the platform’s Liquidation Engine absorbs negative positions during large market swings and injects liquidity into the market to prevent widespread liquidations and maintain the platform’s solvency.

During market simulations, it was found that FTX’s Liquidation Engine prevented clawbacks and often posted net gains after periods of high volatility. Under the Socialized Gains program, 10% of all net additions to the backstop fund are used to buy and burn FTT, creating a new way to share revenue with the FTX community.

How Often is FTT Burned?admin2022-06-10T15:21:12+09:00

How Often is FTT Burned?

FTX Token is repurchased and burned every Monday at 22:00 (UTC +8). Purchases are executed on FTX’s FTT/USD market, and burning is typically completed within 2 hours. You can view live updates of FTT’s current circulating supply, total FTT burned, and the entire record of FTX Token burns by visiting https://ftx.com/ftt.

Why is FTT Burned?admin2022-06-10T15:22:04+09:00

Why is FTT Burned?

The FTX Token burn is an integral part of the long-term success of FTX. By sharing revenue with FTX Token holders, we create an ever-growing community of users who are invested in the platform’s long-term success.

FTX Token is an integral part of the FTX ecosystem and ensures that FTX remains the go-to destination for crypto traders around the world.

To learn more about how you can benefit from buying FTX Token, visit https://ftx.com/ftt today.

Join FTX and Start Staking FTT Today!

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