How DEX Platform Coins Can Be Re-Empowered MDEX Launches “Buyback Destruction + Production Reduction” Combo

The rise of DeFi liquidity mining has not only given rise to decentralized exchange (DEX) platform coins, but also stimulated the overall strength of the cryptocurrency trading market.

How DEX Platform Coins Can Be Re-Empowered MDEX Launches "Buyback Destruction + Production Reduction" Combo

The rise of DeFi liquidity mining has not only given rise to decentralized exchange (DEX) platform coins, but also stimulated the overall strength of the cryptocurrency trading market, thus driving the growth of centralized exchange (CEX) revenue and “bringing fire” to CEX platform coins. With the bull market, platform coins have become a popular concept.
PAData selected 10 popular platform coins, including BNB, HT, OKB, FTT, KCS, UNI, SUSHI, CAKE, BAL and MDX, based on the market capitalization of CEX platform coins and the lock-up amount of DEX, and found that this year, the average (median) theoretical holding return of the 10 platform coins is about 387%, and the average (median) highest theoretical holding return is about 790%.

However, it is worth noting that the average return of DEX platform coins is lower than that of CEX platform coins, with the average (median) theoretical holding return being about 33% lower and the average (median) highest theoretical holding return being about 28% lower. So, what are the reasons for this difference, and how can DEX platform coins achieve value re-empowerment?

Exchange platform coins rotate up, CEX platform coins are used in richer scenarios

This year, the expected return performance of platform coins is very eye-catching. According to CoinMarketCap’s data, the average (median) theoretical holding return of the 10 platform coins is about 387%, and the average (median) highest theoretical holding return is about 790%, while the theoretical holding return of BTC is about 29.60% and the highest theoretical holding 120.82% in the same period.

However, from the comparison of the expected return of CEX platform coin and DEX platform coin, the expected return performance of DEX platform coin is slightly inferior. According to statistics, this year, the average (median) theoretical holding return of CEX platform coin is about 506.24% and the average (median) highest theoretical holding return is about 993.24%, while the average (median) theoretical holding return of DEX platform coin is about 338.81% and the average (median) highest theoretical holding return is about 717.48% during the same period. That is, the DEX platform coins are both about 30% lower in terms of these two return performance figures.

The better theoretical returns of CEX platform coins this year may be related to the impact of the Coinbase IPO and sector rotation. In fact, the second half of last year was the explosive period of DEX platform coins, when the theoretical returns of DEX platform coins were higher.

The earnings performance of platform coins is inextricably linked to their source of value, which mainly depends on the breadth and depth of their application scenarios. after analyzing the current usage scenarios of each platform coin, PAData found that currently, the application scenarios of CEX platform coins are more extensive than those of DEX governance tokens, which provides support for the continued good performance of the expected earnings of CEX platform coins.

The main uses of CEX platform coins are trading and equity credentials, such as they can be used to offset trading fees, rebate commissions, lock-in to get airdrop, up-coin voting, and initial private placements. In addition, there are several CEX platform coins that have been gradually applied in other ecological scenarios, such as HT, KCS and OKB have opened up external cooperation channels and can be used in platforms such as Travala.com, Tripio, Firmachain, etc. HT and BNB are deeply applied in HECO ecology and BSC ecology as native assets of public chains.

In contrast DEX platform coins have a single source of value, with their main use being rewards and community governance credentials. Considering that the current overall participation in community governance is not high, and the average voting participation rate of DAO has also dropped by 26.35% in the last six months, the current main use of DEX platform coins is actually rewards. However, it is worth noting that the newly launched decentralized exchange MDEX this year has provided multiple value support for the platform coin MDX, including community governance, liquidity rewards, initial private placement and pledge (lock-in) rewards, etc. MDX has become one of the richer platform coin application scenarios in DEX.

However, as a whole, DEX platform coins now need to be re-empowered to achieve token value growth, making the platform coins form a positive feedback mechanism with exchange development. For DEX platform coins, is there anything to learn from the CEX platform coin’s empowerment path?

Repurchase/Destruction for Deflationary Empowerment, DEX Repurchase is More Transparent and Trustworthy

Buyback destruction is one of the main means by which CEX enhances the value of its platform coins. According to PAData’s statistics, the current CEX repurchase of platform coins is mainly funded by revenue or profit, which usually accounts for about 10%-30%. In the first quarter of this year, Binance repurchased and destroyed the largest total amount, about $595 million, HT repurchased and destroyed $195 million, and FTT and OKB both repurchased and destroyed more than $35 million.

The main reason why buybacks/destruction can boost the value of platform coins is that this allows for token deflation, and compared to CEX, MDEX’s buybacks are not small. According to the rules, MDEX injects 30% of the daily platform revenue into the pool of funds to be repurchased, and automatically performs repurchase/destruction when the smart contract triggers the repurchase price (72-hour MDX average price). According to the official introduction, since MDEX opened the Boradroom repurchase and destruction pool on February 06, 2021, smart contracts automatically repurchase and destroy the world’s first MDEX dual-chain repurchase and destruction (Heco & BSC) a total of 47.62 million MDX, Heco has destroyed a total of 41.82 million MDX, BSC has destroyed a total of 5.8 million MDX, the average daily repurchase and destruction of a total of 36 The Boardroom of MDEX Board of Directors has completed a total of nearly $220 million in rewards, including $180 million for Heco and $35 million for the BSC version of Coin Smart Chain.

Another noteworthy trend is that since this year, CEX has also tried to speed up the deflation process and increase the speed of platform coin appreciation through other supplementary destruction plans, such as the “Anti-blackhole Destruction Plan” launched by Coinan and the welfare destruction plan launched by OKEx. Among DEX, MDEX has also launched an accelerated destruction campaign, “Burn the Black Hole”, to give back to its users to a greater extent. According to the campaign plan, MDEX will establish a burning pool, part of the amount in the pool for the MDX invested by users, another part for MDEX daily injection of 300,000 USDT. users into the burning pool MDX will be given a random number, this random number from a single input MDX that transaction hash, the exchange in the block hash, the current block contains the number of transactions, and then add The last 5 digits of the new hash value is the destruction credential number.

If the destruction voucher number obtained by the user and the announced number have 3 digits are the same, the user will get the “Superstar Prize”, the prize is 10% MDX in the burning pool; if the destruction voucher number obtained by the user and the announced number have 2 digits are the same, the user will share 100,000 USDT according to the ratio of MDX invested “Stellar Prize”; if the destruction voucher number obtained by the user does not match with the announced number, the user will share 200,000 USDT “Planetary Prize” according to the percentage of MDX invested. If more than one person wins any prize, the prize will be determined by the percentage of MDX invested in the burn pool. According to the official introduction, the first “burning black hole” total destruction of more than 464,000 MDX, the final actual destruction of more than 417,600 MDX.

“Half” empowered DEX platform coin, is expected to bring “half market”

In addition to buyback/destruction, “halving” is actually a widely used deflationary empowerment tool. Take BTC as an example, after each block reward halving, BTC’s coin price can usher in a round of rise. According to statistics, the first halving of the BTC block reward occurred on November 28, 2012, and the price rose by about 955.74% in the six months after the halving, with the highest increase of about 1790.98%. The second halving occurred on July 10, 2016, and the half-year coin price increase after the halving was about 37.24%, with a maximum increase of about 1,646.04%. The third reduction occurred on May 20, 2020, half a year after the halving of the coin price rose about 75.53%, the highest increase of about 76.59%, so far the increase has reached 328.26%. The stimulation of the coin price by half is very significant.

In anticipation of this, MDEX has also designed the halving mechanism to provide strong support for the coin price by controlling the marginal increase in the circulation of tokens. According to the official data provided by MDEX, since MDEX officially launched transaction mining and liquidity mining on January 19, 2021, up to now, MDEX transaction mining subsidies and liquidity mining rewards have totaled 430 million MDX, worth $1.06 billion. Heco, the Firecoin ecological chain, has mined 310 million MDX, with a market value of $760 million; BSC, the Coinan smart chain, has mined 120 million MDX, with a market value of $300 million.

Taking this as the halving base, after 138 days of operation, on June 5, the first halving of MDX will make the daily new supply drop sharply from 311,600 MDX to 155,800 MDX. If we convert the MDX closing price of $2.45 on June 2, it is equivalent to the first halving, the potential selling pressure on the market will be reduced from $763,400 to $381,700 per day.

The production cut would result in a significant reduction in the supply of MDX, which would mean a significant increase in the value of MDX when demand remains constant. Since the first reduction, the reduction cycle will also be shortened to 3 months, which means the deflation process will be greatly accelerated, and as of the 20th reduction on February 9, 2026 (based on a 90-day projection), the total circulation of MDX will all be no more than 458 million pieces. Coupled with the buyback destruction, MDX’s economic model will create a strong deflationary expectation, which can provide stable support for MDX’s long-term coin price trend.

MDX has become the highest single-day trading volume DEX, with the highest increase in lock-in volume in the last week

MDX has created ideal upside expectations through multiple empowerments such as buyback/destruction, halving, lock-in bonus, token debut, and online governance, which creates a positive positive cycle with MDEX’s rapid growth. According to DeBank, as of June 3, MDEX has reached $1.826 billion in lockups (BSC only), ranking 12th among all DeFi protocols and 3rd among DeFi on BSC. Overall, its lock-in volume has performed remarkably well in less than six months of being online.

It is worth noting that in the last 7 days, the lock-in volume of MDEX has grown significantly, reaching an increase of about 35.72%, much higher than other DEXs in the observation range, and in a rapid growth period.

In terms of trading volume, as of June 3, the trading volume of MDEX (BSC only) reached $1.342 billion in the last 24 hours, which is the highest daily trading volume of DEX in the observation range, followed by Uniswap (v2+v3), which also exceeded $1 billion in daily trading volume at about $1.040 billion.

According to the official introduction, MDEX daily trading volume exceeded $2.7 billion, nearly doubling that of Uniswap, ranking first in CoinMarketCap and CoinGecko’s global DEX ranking and reigning at the top. MDEX dual-chain deployment (Heco & BSC) has the highest TVL of over $5.7 billion and the cumulative trading volume exceeded $340 billion.

Combined with the number of addresses that have interacted with the protocol in the last 24 hours, MDEX has about 4490 addresses, lower than PancakeSwap’s 300,000 addresses and Uniswap (v2+v3)’s 57,000 addresses, but higher than Balancer’s 153 addresses. As can be seen, the distribution of the number of addresses on DEX varies greatly, but it should be noted that neither too high nor too low address numbers are ideal, too high may mean that the woolly party squeezes the demand of ordinary users, too low may mean that the actual users of DEX are too small to form a generally liquid trading market.

Overall, MDEX has been launched so far, and the comprehensive performance of the business data on the chain is good, which provides the most basic value support for the price of MDX.

MDEX future planning: continuously improve user experience and create multiple values

At present, MDEX has deployed HECO and BSC ecology and successfully landed on 23 exchanges such as Huobi Global, Binance, Gate.io, M XC, etc.; MDEX ecological fund has invested in O3, Coinwind, Westater, Filda, Booster, Converter, Syn Open Leverage and many other high-quality projects.

Combinability and innovation are important factors driving the development of DeFi. In the future, MDEX will deepen the trading link and continue to provide users with a more efficient, convenient and free trading experience. Not only will the liquidity optimization protocol be launched to significantly improve the efficiency of capital utilization, but also the cross-chain trading function will be launched to realize the value transfer of multi-chain networks, and the innovative trading interface and order book will be launched to upgrade the user trading experience.

Trading is the core of DeFi’s value, but it is by no means the end of DeFi’s world. Therefore, MDEX will also expand its ecological map horizontally, build more innovative products and create more value. MDEX will implement the M-USD plan to release unlimited liquidity; it will also implement the M-MEX plan to create a one-stop solution for derivatives and gradually launch a series of innovative derivatives such as leveraged trading, option trading and prediction market; in addition, MDEX will also implement the M- LEAGUE plan to create a new Defi ecology, and a series of support programs such as IMO, MDEX Foundation, and M-Accelerator for start-up projects will be mentioned with higher priority.

MDX owners are the most loyal builders of MDEX, and MDX will all be the only core pass of MDEX ecology, and the only beneficiary of all the growth dividends of MDEX. In the next version, MDEX will land the DAO plan to return all the power to the community, the board member election plan will be launched, MDX vote to elect 21 super directors, board members can enjoy the power to initiate proposals and get high income dividends, and users can vote through MDX to participate in governance and get the corresponding rewards. Secondly, MDEX will open a long-term lock-in plan, allowing core supporters to reap great rewards. Finally, MDEX will also empower more product income to share MDEX growth dividends, and any product income MDEX will use to give back to MDX holders through rewards / buyback destruction, etc.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-dex-platform-coins-can-be-re-empowered-mdex-launches-buyback-destruction-production-reduction-combo/
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