August 27, 2020 |James Messi
Setting the standard for Loyalties and Rewards in crypto
While STK has a powerful 6.5L V12 under the hood, the principle is very simple; the longer you’re a part of the program and the more you allocate towards it, the greater your rewards.
In this piece, we’ll cover:
- A brief explanation of what STK is
- STK’s Sapphire and Diamond tiers, how the variable APR works, and what the “7% rewards pool” means
- Theoretical models and examples of how the Sapphire and Diamond tier work.
What is STK?
STK is Beaxy’s revolutionary loyalty and rewards program designed to give back to you - the loyal Beaxy user.
We went back to the drawing board for this program, so let’s start right at the beginning. STK is a comprehensive overhaul of the old PLS program. Through reengineering, we have eliminated all of the core system inefficiencies that played a major role in PLS’ demise. A process cannot be improved without an in-depth understanding of how that process has failed. So our starting point was quite simple; to understand how PLS went wrong before identifying ways we could improve the system. As such, PLS was dismantled, and STK was born.
The Sapphire and Diamond Tiers
What are the Sapphire and Diamond tiers, you ask?
- The Sapphire tier: allocating less than 1,000,000 BXY tokens towards the program
- The Diamond tier: allocating 1,000,000 tokens and more**
So, why a two-tiered system?
The two-tiered system ensures all members are rewarded fairly and equitably. No longer are the rewards disproportionately skewed in favor of the rich . Everyone has the opportunity to earn a reward based on what they put in!
Now for the fun stuff. Let’s do a deep dive into the Sapphire and Diamond tiers so you can see what’s in it for you!
The Sapphire Tier
“Allocate your BXY tokens towards the program, and get rewarded with up to 12% APR!”
Participants who allocate less than 1,000,000 BXY tokens towards the program become members of the Sapphire tier, and rewards are relative to the length of membership time and the amount of BXY tokens allocated towards the program. Your APR is dictated by your term, which is broken out in detail below.
Theoretical average daily pool sizes for the Diamond tier:
The table above is an overview of how the Sapphire tier’s reward mechanism works. Let’s simplify it. Terms are in monthly blocks, so you can sign up to the Sapphire tier for 1 month, 2 months, 3 months, all the way up to 12 months. Your term is chosen on sign-up and your Annual Interest Rate is dictated by your membership term.
Rewards are distributed monthly. You’ll receive a percentage of the total number of BXY tokens that you initially signed up to the program with, monthly, until the end of your term. The percentage used to calculate your monthly reward is your Monthly Interest Rate”. Finally, rewards are distributed in the form of BXY tokens.
Here is a hypothetical example:
- John signs up to the STK program’s Sapphire tier with 751,580 BXY tokens and chooses a term of 10 months.
- John’s annual interest rate is 10%, and his monthly reward is 0.83% of his total BXY allocation (751,580 BXY tokens).
- That means John receives a loyalty reward of 6,238 BXY tokens per month, and he’ll have received a total loyalty reward of 62,380 BXY tokens by the end of his 10-month term.
It really is as simple as that!
Key Takeaways from the Sapphire Tier:
- Allocate up to 999,999 BXY for a maximum term of 12 months
- The minimum membership term is 1 month
- Terms are in 1-month blocks
- Interest rate is dependent on the length of your term
- The longer the membership term, the higher the interest rate. The higher the interest rate and the more BXY tokens you allocate, the greater your monthly reward!
The Diamond Tier (Coming soon)
“Allocate your BXY tokens towards the program, and get added to a pool to receive your share of 7% of the exchange’s trade fees!” People that allocate 1,000,000 BXY tokens and more towards the STK program join the Diamond tier. Members of the Diamond tier are rewarded with a prorated distribution of 7% of the exchange’s average daily revenue.
Let’s break that down below for clarity.
The Diamond Tier’s Reward Pool
The reward pool is dependent on the exchange’s average daily volume, or ADV. We take 7% of our revenue from trade fees and add them to a pool. This pool is distributed to members of the Diamond tier.
Here is a breakout of the theoretical average daily pool sizes for the Diamond tier:
Let’s look at a theoretical model where the exchange’s ADV is $5,500,000, yielding a daily rewards pool of $616.00.
A theoretical model of the Diamond tier:
Scenario refers to the total number of BXY that all members have allocated towards the Diamond tier at any given time. BXY Allocated refers to the number of BXY tokens allocated.
% Entitled To refers to the percentage of the rewards pool that a person would be entitled to. The share of the rewards is dependent on the number of BXY tokens allocated. Payout refers to rewards.
Here is an example based on the model above:
- John allocates 2,305,432 BXY tokens towards the STK program’s Diamond tier.
- The total number of BXY tokens allocated towards the program at the time is 61,284,290 BXY tokens.
- That means John is entitled to 3.76% of the rewards pool.
- John receives a reward of $23.17.
The Diamond tier can be summarised by the following: as the number of trades on Beaxy increases, the rewards pool increases. The greater the rewards pool and the more BXY tokens you allocate towards the Diamond tier, the higher your reward. Simple!
To start receiving loyalty rewards today, click here to register for a free account on Beaxy Exchange. Once you have logged in, fund your account to access the BXY trading pairs and acquire STK-eligible BXY tokens.