The recent advent of transaction mining as a business model has taken the cryptocurrency world by storm, with transaction fee mining exchanges such as BitMax and FCoin overtaking other long-serving exchange powerhouses in a short span of time.
Conventional cryptocurrency exchanges have had a simple business model of charging transaction fees on the end user when an order is successfully matched and executed. Transaction fees are typically charged as a small fraction (0.10 – 0.30 %) of the traded amount. As a result, users that are large traders or engage in high frequency strategies tend to wrack up a large amount of fees.
Transaction Mining represents a paradigm shift from this traditional business model. Instead of simply collecting fees from end users, fees are redistributed back to users through the issuance and awarding of native utility tokens. A token buy-back mechanism or a partial trading fee distribution to token holders Is subsequently instated to create value. The proposition to users is decidedly attractive; instead of paying for the trading of cryptocurrencies, they obtain additional native tokens which has trading value and a stake in the fee revenue of the exchange itself in return. Market response corroborates with unprecedented record trading volumes, showing that the transaction mining model is an effective incentive for user growth and activity.
The gaming industry has been implementing largely homogenous reward programmes and user incentives, which does not necessarily provide value to users on a continuous basis, and hence does not promote user loyalty.
Dennis Loke, CEO of Bitpunter Gaming Platform
Bitpunter Gaming Platform, an online gaming platform with a range of casino and sportsbook products, seeks to reproduce the success of the transaction mining model in the realm of gaming. With a slated official full launch on January 2020, the Bitpunter Gaming platform will feature both crypto and fiat currency deposit options, and a pioneering game transaction mining model. By playing on the Bitpunter Gaming Platform, players are awarded BPTT Tokens in accordance to their gaming turnover. 80% of net gaming revenue generated on the Bitpunter Gaming Platform will be sent to a “Game Data Fee Pool”, which is distributed to the pool of token holders in proportion to the number of tokens they hold in relation to total supply.
Dennis Loke, CEO of Bitpunter Gaming Platform, explains the underlying motivation of introducing transaction mining to the gaming industry. “The gaming industry has been implementing largely homogenous reward programmes and user incentives, which does not necessarily provide value to users on a continuous basis, and hence does not promote user loyalty. We aim to break the status quo through a transaction mining model which will hopefully incentivize and attract players to come to our platform and play for a long time, as they will earn tokens which provides value for them in perpetuity.”