CoinFLEX: Change to FLEX Burn Fee schedule
Here at CoinFLEX we have always strived to provide a great experience for traders who wish to trade cryptocurrency cheaply. One of the primary ways to do this is, of course, lowering fees: CoinFLEX has arguably the lowest trading fees on the market, even without the range of incentives to make it even lower.
However, one of the most underutilized features of the FLEX coin is the ability to redeem 50% of your trading fees by burning FLEX daily. We often explain this feature to users, but we find few people take the deal, even when it is in their best economic interests to do so.
After thinking deeply about this, we have decided to change the fee structure: Instead of asking for a daily burn of 100 FLEX to receive a 50% fee discount, we will instead allow users to receive a 50% discount on trading fees, if fees are paid in FLEX.
While designing incentives to keep fees attractive, we also want to ensure FLEX accrues value due to proper fundamental demand for its utility value. We believe this change in fee model achieves both objectives and will be in the interest of FLEX traders and holders.
In terms of mechanics, we will be rebating fees back to traders once a day, debiting FLEX from your account. Users can opt-in on our platform. We may upgrade the process in the future, but that involves changes to the fundamental matching infrastructure and may take time.
We will have a toggle in the “FLEX Coin” section of our interface where this function is processed automatically. We will default this to “on” for all users, with the option to opt out.
This change will go live on Wednesday 11th March, which means that the last redemption for 100 FLEX will be on Wednesday at 11:59 AM UTC time. After this time users will have an option (which by default will be checked “On”) to pay trading fees in FLEX Coin. The USDT they paid in fees will be returned to them and instead be charged the equivalent of half the USDT in FLEX Coin. This amount is calculated using the Volume Weighted Average price of FLEX Coin for each hour for the last 24 hours. The FLEX Coin fee amount will therefore be dependent on the corresponding hour during the day a user’s USDT fees were originally incurred.
In the meantime, we continue to build and ship products and have a few more in the pipeline to be released soon. Thanks for your support through this time and FLEX ON!