As part activities marking its first year anniversary celebration, Binance has announced a new loyalty program for its users of its platform.
Binance is the world’s largest cryptocurrency exchange by trading volume, at its launch in July 2017, it offered customers a unique discount if they used their own token (BNB) to pay for trading fees.
According to a white paper issued by company, the BNB token will allow eligible traders to receive discounts on the fees the platform charges for facilitating trades for their first four years. During their first year of operation, this saving was a massive 50%.
However, beginning August 20, Binance says it would halve the discount to 25%. In addition, the company said it is introducing a tiered system of fees much like the one at the Winklevoss twin’s exchange Gemini.
The company explained in a recent blogpost that from August 21, the trading fees paid by users will depend on their balance of BNB tokens, as well as their trading volume over the previous month. The highest volume traders can expect to pay as little as 0.02% as a market maker and 0.04% as a taker.
“To show our appreciation for the continuous support received from our users, Binance will introduce a new Tiered Trading Fee Discount Program starting (and applicable) from 2018/07/21 01:00 AM (UTC)”
A breakdown of the tiered fees is shown below
Binance is co-founded by Changpeng Zhao and Yi He in 2017. Within the space of one year, the company has grown to become the largest digital coin exchange in the world. Previously headquartered in China, the company moved its servers and headquarters to Japan after the Chinese government announced plans to restrict cryptocurrency trading activities.
The company’s business model that includes generous discounts for users and the issuance of its own ICO made it the largest crypto-exchange with a BNB market capitalization of $1.3 billion in just a couple of months.
Following stricter regulations in Japan and China, Binance has announced its intentions to open an office in Malta and found the world’s first decentralised bank on the island nation.