DAX Tokens — What Are They?

From the latter half of 2017 until now, centralized exchanges introduced exchange tokens to their platforms. These utility tokens are used to incentivize trade orders by giving discounts on trading fees, allowing traders to take part in the governance of the exchange when it comes to listing new tokens, or providing a refund as a percentage of the total trading fees accumulated by the exchange. One issue that is often overlooked regarding these tokens is that they are derived from a centralized entity. The centralized exchange determines the rules of how the token provides incentives to their customers.

The DAX token is a utility token that will be used across all exchanges in the DAEX ecosystem. Traders who own DAX will be able to securely record and validate transactions in a transparent environment. Whether it is paying fees related to clearing, asset settlement or trade matching, they will not be limited to a single exchange. At first, cryptocurrencies will be the digital assets used for clearing and settlement, and at a later stage derivatives will included in the ecosystem.

Users who participate in creating an account can also gain a reward, and this reward amount will gradually decrease as more accounts are opened in the system. Users who invite others to open account can also gain rewards, and this reward will gradually decrease as more invitations are completed. Using a Clearing Value Factor (CVF), DAX token holders are assigned a value based on their activity within the ecosystem. This value is influenced by several factors; see below for details:

• Clearing Value: Measures clearing contribution by calculating user’s accumulated clearing contract numbers and total clearing quantities within the most recent sliding time window.
• Capital Value: Calculate user’s total digital asset value in the clearing ecosystem based on factors like ranking, market value, circulating ratio, and daily transaction volume.
• Transaction Value: Calculate transaction values based on the scientific combination of periodic peaks and clearing time, trade components, trade channels, and other factors.
• Active Value: Based on user’s clearing participation time, trade influence ability, and new customers developed as well as other factors to form a clearing activeness profile.
• Identity Value: Calculate the clearing identity levels based on user’s participation in the exchange’s business range, debt ratio of digital assets, DAX coin age, etc.

Each owner of DAX token holder in the ecosystem is essentially a part owner of the ecosystem. In comparison to centralized exchange tokens, DAX tokens are distributed in a transparent and decentralized way.

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