FTT, as the only token of FTX, will be used to support the entire ecosystem of FTX. We have carefully designed the incentive mechanism, strengthened marketing, formed a network effect, increased the market demand for FTT, and reduced its circulation supply at the same time.

The application scenarios of FTT include:
1) Destruction of platform tokens/profit sharing: before the destruction of the total amount of FTT tokens on the platform is reduced to half of the initial issuance, one-third of all handling fees generated on the FTX platform One will be used to buy back and burn FTT. Part of the transaction rebates on FTX OTC will also be used to repurchase and burn FTT.
2) Margin mortgage: Users can use FTT as a contract position margin, which is also conducive to increasing the utilization rate and market demand of FTT.
3) Transaction fee discount: After FTT currency holdings reach a certain amount, the currency holder will enjoy a discount on contract transaction fees.
4) OTC transaction rebates: holders who hold a certain amount of FTT can receive OTC transaction rebates. (There is no handling fee for OTC transactions of FTX.)
5) OTC transaction repurchase: FTX will carry out a certain degree of FTT repurchase and destruction according to the transaction volume and income of OTC.
6) Dividend for currency holders: Our background test and online simulation environment show that during the relatively large market period, our risk deposit has shown a net increase, and there has been no excessive apportionment; part of the net income of the risk reserve will be used as a share to the to FTT holders.
7) Future outlook: FTT is the only circulation token in the FTX ecosystem, and it is the backbone of the FTX ecological layout; the usage scenarios of FTT will be more diverse in the future, and we will add more other digital currencies on the platform derivative instruments.

FTT Staking

Staking FTT will enjoy the following rights and interests:
Increase the ratio of referral rebates: By staking FTT, the inviter will get a higher rebate ratio
Pending order fee reward: FTT pledgers will receive a pending order fee reward (The original FTT fee discount will remain)
Extra voting rights: Staking FTT will get additional voting rights and standard votes, determined based on the number of FTT holdings and 30-day transaction volume)
Additional airdrop rewards: Staking FTT will get more SRM airdrops (and get other airdrop rewards that may appear in the future)
Free of blockchain fees: shareholders can get free ERC20 and ETH withdrawals every day

Repurchase and destruction

We will repurchase and burn tokens equal to:
33% of FTX market fees
10% of net increase in the insurance fund (“Socialized Benefits”)
From other uses of the FTX platform 5% of fees earned in
FTX will buy fttt on its fttt/USD market. Purchased fttt will be burned weekly according to the schedule adopted by FTX. The current schedule usually starts every Monday at 10:00 PM HKT, with purchased tokens burned at 11:59 PM HKT on Tuesdays. The above fees are less promotional discounts, payment processing fees, referral fees and third party fees associated with such revenue.