Announcement: VX Mining Official Start Date (Archived)

Mark your calendars for September 9, 12:00 UTC+8

Published in

Vite Labs

7 min readSep 6, 2019

This article is an old version. For the latest version, please refer to https://medium.com/vitelabs/vitex-mining-guide-1d73052e61ff

We are thrilled to announce that VX mining will officially begin at 12:00 (UTC+8) on September 9th. Save the date and join us!

Now, in case you haven’t read the multitude of articles we’ve put out about VX mining, distribution, and dividend collection, we’ve very nicely gathered everything together into this article. Read on for everything you need to know about VX!

Some important links:

ViteX Official Website: https://vitex.net/

Trade on ViteX: https://x.vite.net/

Request Referral Code: https://forms.gle/Bps8oR3q1FyEZG2FA

Join the ViteX Telegram Community: https://t.me/vitexexchange

How to Mine VX

Trading as Mining

The first batch of trading pairs eligible for mining VX on Sep 9 are grin/btc, eth/btc, vite/btc, vite/eth, grin/eth, grin/vite, eth/usdt, btc/usdt and vite/usdt.

Allocation: 60% of VX distributed daily is reserved for traders in the four markets above. Each market receives 15% equally.

Participation: By executing trades on eligible trading pairs, users mine VX.

Reward: Individual VX rewards are calculated based on the proportion of a user’s daily accumulated trading fee to the total accumulated fees in each market. For example, if a trader contributes 5% of the total BTC market trading fees on a given day, then that trader receives 5% of the 15% of VX rewards allocated to the BTC market.

Staking as Mining

ViteX requires tokens to be staked in order to run transactions. By staking VITE, users can receive rewards in VX.

Allocation: Every day, 20% of all VX released is reserved for users who stake tokens.

Participation: Users can earn VX by staking VITE with the beneficiary set to the ViteX smart contract. The minimum amount of VITE that a user can stake is 134 VITE. There is no maximum.

Duration: Users can stake their VITE, keeping in mind that they can withdraw the full amount after three days. Users can stake VITE indefinitely if they want to; there is no maximum. Tokens, once withdrawn from staking, will no longer count towards “staking as mining” rewards.

Reward: Individual VX rewards are calculated daily based on the proportion of VITE staked by a user to the total amount of VITE that was staked.

Market-Making as Mining

Placing orders on ViteX is another way for users to earn VX. The amount of VX depends on three factors: 1) order size 2) length of time on order book 3) amount of deviation from the best bid and best offer in the order book spread.

Allocation: Every day, 10% of VX released is reserved for each market — BTC, ETH, VITE and USDT — each weighted equally at 2.5%.

Participation: Only eligible trading pairs will be considered for “market-making as mining” rewards. Only buy orders are considered for rewards. Buy orders must not deviate more that 10% from the best buy offer in the order book.

Reward: The VX mining reward for market-making has a linear relationship with the order amount and order duration. However, the mining reward has an exponential relationship with the order distance (deviation from the best bid offer). For example, imagine if Person A and Person B place two separate orders for the same amount of token X for the same amount of time. However, Person A prices their order on level 1 (extremely close to the best bid offer) and Person B prices their order on level 10 (further away from the best bid offer). The mining reward for Person A will be 100 times that of Person B. This system incentivizes users to place orders as close to the best bid offer as possible.

Referring as Mining

Users can request invitation codes for their friends to join ViteX. Invitees enjoy a 10% discount on trading fees on ViteX. 5% of an invitee’s trading fees count toward the inviter’s “trading as mining” reward calculation.

Participation: Users apply for referral codes through the form below. In order to obtain a referral code, a user pays 1,000 VITE which goes entirely into the shared dividend pool. Currently, referral code generation is not available to all users. In the future, the referral code generation function will be added to the Vite wallet and users will be able to generate codes without applying.

https://forms.gle/D71gwnVVXdEBWfKi8

Reward: If Person A gets a referral code from Person B, when Person A signs up on ViteX their trading fees are discounted by 10% (base transaction fee + any applicable Zone fees). Person B, on the other hand, benefits from the trading activity of their invitee since 5% of the invitee’s accumulated trading fees count for the inviter’s “trading as mining” rewards. For example, if Person A accrues $100 in trading fees and Person B accrues $200, Person B effectively has $205.

Listing as Mining

Whenever a trading pair is opened on ViteX, the issuer must pay 10,000 VITE. Of this amount, 5,000 VITE is burned and the other 5,000 VITE goes into the shared dividend pool. The token issuer’s VX reward is then calculated as if they executed a trade involving a transaction fee of 1,000 VITE. For example, is Person A lists a trading pair, their VX reward on a given day is calculated as follows:

ViteX Coin — VX

Summary

VX is the native coin of ViteX. VX holders enjoy benefits in the form of dividends, via trading and listing fees collected by ViteX in order to be distributed back to the users.

VX Basics

The total supply is 100 million VX. Holders receive daily dividends from a shared pool which aggregates both trading and listing fees accumulated by ViteX. ViteX collects fees in order to distribute them back to VX holders. Distribution of VX involves no private sale nor public sale. The only way to get VX is through the five mining methods above. The release schedule is two years at a fixed percentage rate for 100 million VX total.

VX Distribution Schedule

Dual Phase VX Release Model

After the official launch of VX mining, there will be two phases of VX release with the total supply set to 100,000,000 with no inflation.

Phase 1: For the first one or two months, 10,000 VX will be released daily (“Buffer Phase”). Once the ViteX team believes enough users have joined the platform, the second phase will start.

Phase 2: During the first year of this phase, the number of VX released per day will decrease by 0.5% daily. 477,032 VX will be released on the first day. According to this formula, 80.13% of the total supply of VX will be released in the first year. In the second year, the number of VX released will decrease by 0.2% daily. 37,051 VX will be released on the final day of the second year.

VX Mining Allocation

The amount of VX released daily will be allocated according to the breakdown below.

60% for Trading, Referring and Listing (15% each for BTC, ETH, VITE and USDT Markets)
20% for Staking
10% for Market-Making
10% for Vite Labs Team

VX Holder Dividends

All fees collected by the ViteX platform is aggregated into a shared dividend pool and distributed as a rate of 1% per day. For any given day, the total fees collected are fully distributed by the 100th day thereafter.

This shared dividend pool consists of the following:

All trading fees collected by ViteX (excluding Operator Zone fees)
5,000 VITE from the 10,000 VITE listing costs collected whenever a new trading pair is listed
1,000 VITE from all users who request referral codes

In order to receive dividends, users must hold a minimum of 10 VX. Note that VX held within a wallet account does not count for dividend eligibility. The VX must be held on the ViteX exchange account in order to be considered for dividend rewards.

Transaction fees have been accumulating in the shared dividend pool since ViteX went live. As 1% of daily trading fees will be distributed to VX holders, 41 days of accumulated dividends will be distributed on the day VX mining starts. Then, the dividend rate will return to 1% daily.

So far, the shared dividend pool has accumulated about $1,500 to be distributed to first day VX holders: 43,035 VITE, 0.01642 BTC, 0.8774 ETH, 202.44 USDT. And of course, this number is still growing every day.