The cryptocurrency space is full of new exchanges popping up here and there, but they all seem to be providing a very similar trading service. The difference between these exchanges is usually very minimal. Still, when a new exchange appears with features to set it apart from the competition, it is best to pay attention - especially if it is regulated inside the United States.
Today, we would like to introduce you to VDollar.io, a blossoming exchange that has created an entirely new concept within the sector known as “Trading Mining.”
VDollar.io - The Evolution Of Exchanges
VDollar is the world’s leading cryptocurrency contracts exchange based in the United States. It is registered in Colorado under VDollar Exchange LTD and has the registration of Money Service Business (MSB), so you can be sure that it will maintain the highest standards and remain compliant.
The exchange comes with everything you’d expect from a typical cryptocurrency exchange, including spot trading, OTC, contract swaps, and margin trading.
However, the feature that sets them apart is their Trading Mining mechanism, which will see 100% of all transaction fees on the exchange being sent to a reserve pool to issue VDollar coins.
Trading Mining - An Entirely New Approach To An IPO
Most cryptocurrency exchanges have their native tokens to provide different services such as voting on products and receiving discounting trading fees. Typically, the exchange will launch their token through an ICO in which users can purchase the token in a set period. For example, BINANCE Exchange conducted its ICO in July 2017 to raise around $15 million and distribute the BNB.
The major flaw in this method is that the distribution is not fair. Large whales could theoretically purchase a high proportion of the tokens and own a significant stake within the network.
VDollar is attempting to change this by introducing an entirely new tokenomics model called Trading Mining.
All the transaction fees generated from users on the VDollar Exchange are put into the USDT reserve pool called the URP. The VDollar (VD) coins are then issued on a 1:1 basis, depending on the liquidity levels in the URP.
To make it clear, it is a method of issuing the VDollar Exchange VD coins to its users without conducting a standard ICO. Additionally, the URP is entirely owned by all VD coin holders, and the on-chain address is publicized, making it totally transparent and verifiable.
One caveat is that users will need to complete their KYC to redeem any VD tokens from their transaction fees collected in the URP.
Furthermore, there will be a total issuance cap at 10 million VD coins with a diminishing output due to their Perpetual Motion Machine, in which the issuance is halved after each phase of distribution.
- The first phase will see a 1:1 issuance of USDT to VD and will release 4.5 million VD.
- The second phase will see a 2:1 issuance of USDT to VD and will release 2.25 million.
- The third phase will see a 4:1 issuance of USDT to VD and will release 1.25 million VD.
This will continue until the entire 10 million VD coins are issued.
The URP balance will be announced daily, and users can monitor the results on-chain;
Trading Mining Gives VDollar Exchange A New Edge Against Competition
There are a limited number of features any cryptocurrency exchange can offer other than trading spot and derivatives. That is why only a handful of exchanges are actually used, with the outliers having a minimal trading volume.
Due to the Trading Mining concept, VDollar Exchange has an entirely new edge against its competition.
The fact that the VD is issued to users who actually trade on the exchange ensures that the native tokens are not just sold off to investors who are trying to make a quick gain. Additionally, the fact that they went with just a 10 million VD issuance cap means that, over time, each VD is bound to continue to rise. For example, BNB released around 200 million in its ICO, which is considerably higher.
Additionally, having 100 of the trading fees going straight into the URP to support the exchange’s native token is an entirely new concept. It provides it a strong anchor and ensures that as VDollar Exchange grows and more transactions enter the exchange, the value of the VD token will continuously rise.
BNB does have a “Burning mechanism” in place, but only a small percentage of the transaction fees are used to buy back BNB for burning. In comparison, 100% of the VDollar Exchange transaction fees are used to support the token.
Lastly, the entire issuance of VD coins is totally transparent and verifiable. Users know exactly how many funds are entering the URP and can easily verify it on-chain. On the other side, Binance does not provide any verifiable information about the transaction fees collected on their exchange at all.
An Exchange On Par With The Top Exchange Around
VDollar has put a lot of effort into ensuring that the user experience is as good as it gets when using their exchange. It comes with all the features you would expect from a top-tier exchange, such as limit orders, stop orders, and market orders. Additionally, they also have the traditional TradingView charting experience integrating, providing all the professional tools required from traders;
The exchange section allows you to trade over twenty-five different coins, including BTC, ETH, XRP, LINK, FIL, and ADA. In addition to the heavyweights, the exchange also has listed popular tokens such as ETC, YFI, UNI, and SHIB.
VDollar is also a contract-based exchange with a perpetual swaps trading section. The Swaps will allow users to trade a handful of cryptocurrency derivatives with a leverage of up to 125X - rivaling the top contract exchanges around.
Their Swap section will allow you to trade BTC, ETH, FIL, and DOGE against USDT, and you can manage risk by choosing between two margin modes: Cross and Isolated.
Cross mode will see all positions using the whole account balance to avoid liquidation, with Isolated mode will allocate an isolated balance in the account to handle any liquidation.
The exchange also features a margin trading section in which users trade cryptocurrencies with a 3x margin. Currently, users can trade BTC, ETH, FIL, DOGE, BCH, TRON, EOS, LTC, YFII, and SHIB against USDT on margin. They can also trade BCH against BTC;
Last but not least, no top-tier exchange is complete without a mobile trading application to allow you to manage your trades on the go. The application is available for both iOS and Android platforms.
Conclusion
In conclusion, VDollar Exchange is something to keep on your radar. Their pioneering Trading Mining concept will undoubtedly change the way that most exchanges issue their native assets. Additionally, the fact that their native asset is backed by an ever-increasing transparent reserve pool from transaction fees means that the VD coin itself is supported by solid economics.
