Bitcoin Forum

FCoin's "Trans-Fee Mining" Mechanism

Our White Paper (https://www.fcoin.com/ft-en.pdf)  has a detailed explanation of Reimbursement of Transaction Fees. Overall, 51% of the platform's total FT base (referred to as "community reward portion" from now on) will be reimbursed to users over time via our "Trans-Fee Mining" mechanism. However once this 51% of the total FTs has been fully released via reimbursement, the "Trans-Fee Mining" mechanism will automatically end.

Concretely, how this is carried out:

Every day (GMT+8, same below) starting at 0 o'clock, we will convert 100% of the transaction fee generated by the user into FT for accumulation every hour. The discounted price is calculated based on the average price of FT for that hour (average price is total transaction amount/total volume). We will begin issuing all accumulated FT returns on the same day at 11am the next day.

In summary, 51% of the FTs (which will be referred to as the “community reward” portion) will be reimbursed to the users via our “Trans-Fee Mining” mechanism. The remaining 49% (which will be referred to as the “previously issued” portion) are being held by institutional funds, Fcoin (https://www.fcoin.com/i/VAWgA) Team, Fcoin (https://www.fcoin.com/i/VAWgA) partners and private investors.

The “community reward” FT portion will be released on the platform daily via our “Trans-Fee Mining” mechanism. To ensure all users benefit equally from this process, we will first “freeze” the “previously issued” FT portion. Subsequently we will employ the formula below to “unfreeze” this FT portion:

Daily “unfreezed” FT portion = “previously issued” FT portion * previous day’s reimbursed portion / “community reward” FT portion.

According to the above methodology, we can calculate the current FT liquidity as: currently accumulated reimbursed FT /51%.

Concurrently, only the holders of reimbursed FTs that are sourced from the “community reward” portion and holders of “unfreezed” FTs sourced from the “previously issued” portion can partake in the platform’s 80% revenue distribution to users. In other words, only holders of liquid FTs can receive this revenue distribution. Hence the calculated number of FTs eligible for revenue distribution is consistent with the current FT liquidity formula above.

Deposit Time

Digital assets transfer includes three steps: Application—Block Confirmation-Enter the ledger.

Application: withdrawal platform or wallet have performed transfer operation.

Block Confirmation: Correspond block confirmations are required, but network congestion and delay may occur and extend confirmation time.

Enter the ledger: Fcoin (https://www.fcoin.com/i/VAWgA) will try best to finish it as soon as possible, after full confirmation.

Tips:

If your Fcoin (https://www.fcoin.com/i/VAWgA) account hasn’t received assets after full confirmation, please contact online customer service or send email to contact us as soon as possible.
If it is not yet full confirmed, please be patient. Fcoin (https://www.fcoin.com/i/VAWgA) doesn’t enter your assets to the ledger until full confirmation.
Withdrawal Time

Fcoin (https://www.fcoin.com/i/VAWgA) platform will verify your account after withdrawal application, considering the security of assets, some accounts need to be manual verified, you are required to provide your personal information if necessary, and can withdraw when it passes verification. When withdrawal successful, it occurs some anomaly cases, please contact online customer service or send email to contact us as soon as possible.

As per our White Paper FCoin will distribute 80% of the platform's revenues to FT holders. The remaining 20% will be utilized towards development and operation of the platform.
Revenue distribution will be done in two stages. First stage is all of the accumulated revenue distribution before June 6th 2018 will be performed on June 6th, 2018. This will be settled at once with all of the FT holders. Subsequently, revenue distribution will be done on a daily basis using the same mechanism.
(Note: 1. the FTs mentioned here only pertains to the already released/liquid FTs in circulation. For more details please refer to the previous Press Release: Regarding FT Trading, Liquidity and Reimbursement. 2. The FCoin revenue distribution statistic method is adjusted to hourly snapshot and hourly calculated. The implementation of revennue distribution is once a day.