Apr 9, 2020

6 min read

What are Exchange Utility Tokens?

What is a Utility Token?

What are the Use Cases of Utility Tokens?

Now that we have an idea of what it is let us now discuss the various implementations of Utility Tokens. The most pervasive and common use case of Utility Tokens are used during blockchain-based crowdfunding and distribution events such as Initial Coin Offering (ICO), Initial Exchange Offering (IEO) or similar activities.

Newdex Exchange Utility Tokens

Exchange Utility Tokens also exist on decentralized exchanges such as Newdex, the world’s largest EOS-based decentralized exchange. Dubbed as the Newdex Platform Ecological Token (NDX) it is used for VIP membership subscription, repurchase and destruction, staking concessions, Token airdrops, advertising bidding, independent listing, and others. Furthermore, it serves as a loyalty reward for participating in KYC verification as well as in marketing and awareness campaigns.

  • 25% of Newdex transaction fee (based on the EOS * obtained from actual token sale).
  • 25% of Newdex OTC fee
  • 25% of the Newpool management fee
  • 25% of the interest income and penalty income from Danchor

Token Buyback and Burning

Final thoughts

Exchange Utility Tokens has become an integral part of both centralized and decentralized exchanges as a means to enhance the trading experience of their users as well as to add more value to their platform. I expect both centralized and decentralized exchanges to continue this practice and implement various burning scenarios to incentivize users to hold and keep their Exchange Utility Tokens.

Transparency disclosure

The above article is a commissioned work for Newdex. I was tasked to write about NDX Utility Tokens. Total creative freedom was given to me. All the information stated above came from my own research and based on my experience and knowledge. It has not been edited by Newdex or any of the aforementioned projects in the article.