Ethfinex, the new Ethereum ERC-20 platform spun out from bitcoin and cryptocurrency exchange Bitfinex last summer has a finally launched their community-centric token that seeks to totally decentralize the exchange by bringing ownership to its participants and traders. Through the Ethfinex platform, users will be able to acquire the platform’s Nectar tokens as a means to be part of the governance and also possess an ownership share in the fees that are generated.
50% of the fees accumulated from trading on the Ethfinex platform will be distributed among NEC token holders. Assuming for example. a user holds 10% of Nectar tokens, then from the fees collected, 10% will be assigned to this user through a smart contract. Ethfinex officially launched in December 2017, although still beta mode.
The Nectar (NEC) Token Launch
There is no ICO for releasing Nectar tokens. Instead, the tokens will be handed out to traders in direct proportion to their trading volumes. This will be computed at the end of every 30 days.
The program offering Nectar tokens officially began today, February 13th, 2018.
As a trader, once you have access to the Nectar tokens, you can either accumulate them or trade them on other exchanges. Users simply earn tokens based on how much they trade. The more is traded on the platform, the more NEC will be accumulated the end of the 30 day period. Ultimately, these tokens will be used as a form of ownership and a stake in the Ethfinex Platform.
How to Get Access to The Tokens
The first thing users need to do to gain access to these tokens is to visit the Ethfinex website and register for the scheme as a market maker.
Once registered, users will get a chance to be a Nectar token holder. The Nectar tokens that will be assigned will be computed and updated at the end of every 30 days. NEC is earned through market making and can be traded on Ethfinex against USD, ETH & BTC. At the end of each 30 day period, traders will be rewarded with Nectar tokens in proportion to the liquidity they provided to the exchange.
There will be an initial circulating supply of 500,000,000 (out of 1,000,000,000 total, 50% locked up) Nectar tokens that are going to be issued at the end of the first period. Market makers who may want to retain a fixed percentage of the total tokens they hold, would accordingly need to be constantly active on Ethfinex.
NEC tokens can be traded immediately once you have them and are ERC-20 compliant, which means they will be easily available and can be traded on most exchanges on the secondary market.
For more information see the NEC contract address, and do note that NEC withdrawals are suspended for the first 30 days of trading.