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Simply Explained: OKB (OKB)

OKEx Exchange is one of the top 5 most used crypto exchanges globally. OKEx focuses on options trading. Think of it like Binance, but instead of targeting the mass market, it’s chasing the specialised trader. It has one of the largest pools of trading pair options, which explains its popularity.

Yep, you know what’s coming… Binance has BNB, FTX has FTT, KuCoin has KCS and drumroll, OKEx has OKB!

OKB is the utility token that powers the OKEx network. It’s used to pay trading fees and facilitate governance. There is also a reward system for users.

What’s so cool about OKB?

The incentives offered to exchange users through OKEx are fruitful. Users get up to 40% off transactions, which is dependent on how many OKB they hold.

Like KuCoin, there are two tiers of users, regular and VIP. This is also linked to the amount of OKB held.

OKB can also provide a passive income for holders through the OKEx Earn plan. Users essentially earn a dividend/interest rate on OKB held in their wallets.

Once again, just like Binance, OKEx has its own native chain called OKExChain. OKB works in the same way as BNB and powers the chain by facilitating training and app development.

What are the Tokenomics of OKB?

OKEx burns OKB tokens every three months, making it deflationary. OKEx also uses 30% of the income from commission fees to do this. 

Then, 50% of the service fee income is distributed to token holders. 

Lastly, OKB operates as a governance token on a minor level allowing holders to vote on policies, rates and so on. However, to date, there is not much information on the full extent of governance.

There is a fixed supply of 1 billion OKB tokens.

  1.   500 million used for rewards and airdrops
  2.   400 million to founders
  3.   100 million to investors

Note many of these tokens are not in circulation due to the bedding period.

Roughly 700 million tokens are to be distributed throughout 2022 and 2023. The allocation for these are:

  1.   300 million for public
  2.   200 million to the founding team
  3.   100 million to early investors
  4.   100 million to a foundation that supported OKB

 

Disclaimer: THIS IS NOT FINANCIAL OR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

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