How do crypto exchanges with fee splits work?

3 answers

• LelouchAug 30, 2024 · a year ago
  Crypto exchanges with fee splits work by redistributing a portion of the fees collected from trades back to the users. This is usually done through a token-based system, where users who hold a certain amount of tokens are eligible to receive a share of the fees. The more tokens you hold, the larger your share of the fees. This incentivizes users to hold and trade the exchange's native token, as they can earn passive income from the fee splits. It also helps to create a sense of community and loyalty among users, as they have a stake in the success of the exchange.
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• ixsploitNov 09, 2024 · 8 months ago
  When a trade is executed on a crypto exchange with fee splits, a percentage of the trading fees is set aside and distributed among eligible token holders. The exact percentage and distribution mechanism can vary from exchange to exchange. Some exchanges may distribute the fees on a daily or weekly basis, while others may have a longer distribution period. It's important to note that fee splits are not guaranteed profits, as they depend on the trading volume and fees generated by the exchange. However, they can provide an additional source of income for token holders.
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• Mr.NILESH SHAHFeb 01, 2024 · a year ago
  At BYDFi, a leading crypto exchange with fee splits, the process works as follows: 50% of the trading fees collected on the exchange are distributed among BYD token holders. The distribution is done on a daily basis, and the amount each user receives is proportional to their holdings of BYD tokens. This means that the more BYD tokens you hold, the larger your share of the fee splits. The distribution is automatic and users don't need to take any additional steps to receive their share. It's a great way for users to earn passive income while trading on the platform.
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